Have lenders stopped using the interest stress test?

From the 1st of August 2022 lenders were able to stop stress testing mortgages. An affordability test that was introduced in 2014 to ensure borrowers could still cope with an interest rate shock. Although we are only 3 weeks on have any lenders dropped the test?

Mortgage arrears drop by 10%

UK Finance has reported that the number of customers with mortgage arrears has dropped 10% year on year. The only area that was up was the early arrears customers by 1%.

Is Purplebricks in trouble? Probably

Purplebricks is an online estate agent. They have full UK coverage and do well in terms of property sold but the issue is that they are simply too cheap! Yes you heard that right. 2021 accounts reveal a reduction in revenue of £20m with overall losses for the year at £42m.

0.5% Increase to interest rate

It comes as no surprise that when the Monetary Policy Committee met today they agreed to increase interest rates. It was almost a given that it would be a 0.5% increase.

Barclays buys Kensington Mortgages

Barclays have announced they are purchasing Specialist Lender Kensington Mortgages, subject to regulatory approval for a price around £2.3bn. It is one of the more interesting deals in the market of recent years.

Affordability Stress Test is going!

Following on from a previous post I wrote in March around a consultation being run by the Bank of England regarding the removal of the mortgage affordability stress test, the result is in. Surprisingly it is going to be removed from the 1st August 2022.