Barclays increases mortgage affordability stress test
Barclays has increased its mortgage affordability test rate for new residential applicants from 6.73% to 6.99%.
The bank says their move is part of the Financial Policy Committee’s new guidelines on affordability, where lenders must consider how a 3% base rate increase would affect a borrower’s ability to repay the mortgage.
Lenders use different calculations to work out how much they will lend and typically use a notional affordability rate. Providing borrowers qualify, it is possible to borrow up to 5.5 times income for both single and joint incomes. However, many of the other banks will lend closer to four times salary.
If you would like help to work out how much you can borrow, call Trinity on 020 7016 0790.
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