The Sunday Telegraph reports that HSBC is considering tightening its mortgage affordability calculations.
Sources tell the newspaper that any changes in its rules would be down to the predicted rise in energy costs households will face following the energy price cap being likely to increase by over 50% in April.
The price cap today is set at £1,277.
HSBC declined to comment on any affordability changes. A spokesman says: “As a responsible lender, we keep our underwriting criteria under review and our affordability models are refreshed regularly, taking in to account key elements of consumer expenditure.
“We would always encourage people to have a healthy relationship with their money and keep an eye on their finances, so when it comes to getting a first mortgage or remortgaging their finances are in good shape.”
He adds: “HSBC UK has produced some information for people on how to save money on energy, which can help them reduce or minimise energy costs, which will help with their financial fitness.”
This information discusses the use of low-energy light bulbs, smart thermostats and timers for electrical devices, as well as providing information on government support for people on a low income.
At the end of last year, the Bank of England revealed that it would be consulting on withdrawing the affordability stress test in the first quarter of 2022.
On the HSBC rumours, Perenna co-founder and chief operating officer Colin Bell comments: “It’s sensible that big lenders like HSBC are considering more stringent affordability tests in the context of increasing energy costs.
“However, this could have harmful consequences on the most vulnerable customers’ opportunity to refinance. In the worst possible scenario, we could see an increase in mortgage prisoners who end up overpaying for their mortgage while at the same time facing higher energy prices.
“Lenders will need to factor in higher energy prices, rising inflation and rising interest rates when looking at a consumers’ affordability, which will make mortgage deals harder to secure in 2022 compared to 2021.”