Barndoor Strategy has been campaigning for several years alongside a number of clients for the Prudential Regulation Authority (PRA) to reconsider the Loan to Income (LTI) flow limit rule on mortgages.

We have argued long and hard that this artificial limit restricts competition and product innovation in the UK’s mortgage market and therefore has a negative impact on both borrowers and lenders.

We were therefore delighted when the PRA announced yesterday that they would be reviewing the loan-to-income ratio requirements and also making immediate changes to the regulation while this review was ongoing.

This change followed a recommendation by the Financial Policy Committee, many members of which we engaged with during the course of our work in this area.

It is tremendous news that lenders will now be able, by consent, to disapply the article 15% limit on the percentage of mortgages they can lend at above 4.5% of a borrowers income. This will make it much easier for first-time buyers especially to get a foot on the ladder and we fervently hope that the PRA will see fit to make this change permanent at the conclusion of its review.

This move should also help Long-Term Fixed-Rate mortgages to finally establish themselves here in the UK and become a serious part of the UK’s mortgage mix, as we have long campaigned for.

You can read more about the PRA’s review and interim modifications here – https://www.bankofengland.co.uk/prudential-regulation/publication/2025/july/pra-review-of-the-lti-flow-limit-rule-and-offers-interim-mbc-statement