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Will removing the affordability stress test help me?

I have been getting a few questions all with the same theme around the removal of the affordability stress test. Understandably many are still confused as to what it actually means for them when it comes to applying for a mortgage and what the impact or indeed benefits are.

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.

Affordability testing is changing

There have been many articles circulating in the media for the last few days claiming lenders are getting tough on the cost of living crisis. Some inflammatory commentators suggest lenders are deliberately squeezing some borrowers out of the market and other frankly wrong comments.

Mortgage Affordability Guide

Mortgage Affordability can be a complex area. Since 2014 changes in the way affordability is assessed by lenders must take many elements into account. This can often go against borrowers either in terms of how much they could borrow or if they can borrow at all. This Mortgage affordability guide should help understand the process.

How much debt will a lender accept for a Mortgage?

When applying for a mortgage the affordability assessment every lender will carry out will be affected by the level of other debt you have. How much debt is too much?

2nd Charge Affordability Assessment, odd!

Who should assess your affordability when borrowing against your property and it is from a different lender to your main mortgage? Will it be your original lender or the one you are borrowing from?