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UK Mortgage Glossary

Stress Test

Affordability check at a higher rate than your contract rate.

Full definition

The lender's check on whether you could still afford the mortgage at a rate higher than your contract rate, simulating future rate rises. UK lenders' stress assumptions vary; typically contract rate + 1-3 percentage points with a floor around 6-8%. Even if you can pay the contract rate, failing the stress test means the lender will offer a smaller loan.

How this affects you

Whether stress test is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.

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An FCA-authorised UK mortgage broker can explain where stress test fits into your specific application — free.

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