U.K. Mortgage Rules Meant to Halt Another Crash Take Effect
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Rules that require borrowers to prove they can afford to make mortgage payments even if interest rates rise take effect today in the U.K. as regulators try to prevent a repeat of the 2008 real estate crisis.
The Mortgage Market Review rules will restrict interest-only and self-certified mortgages and stop banks from relying on rising property prices to balance the risk that a borrower might not repay their loan. The measures, finalized in October 2012, take effect today.