7%stress test

SR1

Is this something all applications are subject to ? I have read a 5 year fix application isn't necessarily subject to it

Thrugelmir

Although not mandatory 7% is the figure that the FSA have issued as guidance to lenders. Lenders are required to lend in a responsible manner.

ACG

Some lenders do more, but 5 yer + fixed rates are exempt. Whether or not lenders choose to use a different rate on those products is down to them to decide, its not a given.

SR1

ACG wrote: »

Some lenders do more, but 5 yer + fixed rates are exempt. Whether or not lenders choose to use a different rate on those products is down to them to decide, its not a given.

Well I know woolwich who I'm with now do 6.99, does anyone know whether they will for 5year fix ?

Thrugelmir

SR1 wrote: »

Well I know woolwich who I'm with now do 6.99, does anyone know whether they will for 5year fix ?

Switching products will most likely involve no checks.

SR1

Thrugelmir wrote: »

Switching products will most likely involve no checks.

Thanks I would be porting what I have (63£ but would be borrowing another 125(hopefully)😨

Thrugelmir

SR1 wrote: »

Thanks I would be porting what I have (63£ but would be borrowing another 125(hopefully)😨

Porting is a new application and will therefore be subject to the checks etc.

ACG

Dont worry about the stress testing.
Just concentrate on the lenders calcualtors. Stress testing at x% means nothing really, its all about the end result which you will only find out by messing arund with lenders calcualtors.

Thrugelmir

ACG wrote: »

Dont worry about the stress testing.
Just concentrate on the lenders calcualtors. Stress testing at x% means nothing really, its all about the end result which you will only find out by messing arund with lenders calcualtors.

Seems to be huge complacency though with regards to interest rates though in the longer term. Mid 90's was the last time that mortgage rates were set at stand alone commercially viable rates.