Halifax reduces mortgage affordability stress test

Halifax reduces mortgage affordability stress test

Halifax Intermediaries is reducing the stress rate applied to its affordability calculations following the recent Bank of England base rate cut

The lender will lower its mortgage affordability stress rate by 0.25 per cent to 6.75 per cent from today (27 September) for new mortgage applications.

Ian Wilson, head of Halifax Intermediaries, said: “Reducing our mortgage affordability stress rate forms part of our ongoing commitment to providing a range of accessible, value for money products designed to meet the changing needs of borrowers, while continuing to support brokers in delivering for their clients as the market continues to evolve.”

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James Carter, principal of London-based intermediary Independent James, said other lenders had already reduced their mortgage stress tests following the Bank of England’s decision to cut the base rate in August.

He said: “It makes sense that they would do this with the lower interest rates. Every little helps.”