This is Money Podcast Mortgage help or mortgage madness? What six times salary loans will mean
Jul 18, 2025
Discover the controversy surrounding proposed mortgage reforms that aim to ease housing affordability for first-time buyers. Experts discuss the risks of larger loans and the lessons from past financial crises. The podcast also dives into the FTSE 100's recent surge, exploring its implications for investors. Additionally, there's a spotlight on upcoming changes to inheritance tax, and practical advice on navigating investment diversifications and choosing the right funds in today's market.
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Risk of Higher Mortgage Caps
- Sweeping away post-financial crisis mortgage lending caps could let people borrow up to six times their salary.
- This might seem helpful but risks making homes less affordable by pushing up prices.
Buyers Are Cautious Borrowers
- Buyers are cautious about borrowing six times their salary due to affordability concerns.
- Stress tests and memory of the crash encourage more prudent borrowing behavior today.
Unexpected Costs Hit Buyers Hard
- First-time buyers often underestimate living costs and mortgage payment hikes.
- Simon shares personal experience of unexpected costs and rising mortgage rates after a fixed term.