We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
RBS Stress Test for BTL?
HomeOwner5
Posts: 10 Forumite
Hi All
Mortgage lenders have a stress test they place on BTL properties, i.e. like 6% interest and 150% rent from the monthly mortgage payment.
I am applying for an RBS mortgage, does anyone know what stress test RBS apply here?
Mortgage lenders have a stress test they place on BTL properties, i.e. like 6% interest and 150% rent from the monthly mortgage payment.
I am applying for an RBS mortgage, does anyone know what stress test RBS apply here?
0
Comments
-
Lenders under moving towards 145% under regulatory guidance. Recommendation for residential mortgages is 7% interest rates.
So you won't be far away with the figures you are using.0 -
Ok thanks. For my calculations, I will use 145% and 6% (the highest i've seen from BTL lenders).0
-
Natwest uses 125% at 5.5% so RBS must be the same.0
-
That's correct, Natwest apply the current stress test of 125% at 5.5%.
This is typically the average with most BTL lenders at present, although dependent on certain factors such as length of initial benefit period and loan to value, there are some lenders that relax this slightly and apply an interest rate of 5%.---- I am a Mortgage Adviser ----
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards