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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