The number of high-risk mortgages made by banks and building societies rose by 15% last year to more than 100,000, a trend that could raise concerns about irresponsible lending and the amount banks hold in reserve to protect against loans defaulting.
The number of mortgages made at 4.5 times a person’s income or more has started rising since the mortgage market review introduced strict tests in 2014 to avoid a repeat of risky lending that led to the financial crash.
The number of such loans dropped from 87,631 in 2014 to 71,272 in 2015. In 2016, however, the figure rose to 88,057 and to 101,380 last year, according to Bank of England information obtained through a freedom of information request.
