Commenting on the announcement by the FPC of a consultation on the +3% stress test, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:
“We welcome the Financial Policy Committee's intention to withdraw the affordability stress test for new mortgages. This measure mainly impacts certain borrowers, such as first-time buyers and those looking to buy in the South East, who can clearly afford a mortgage but are hindered by the requirement to test that they could still pay their mortgage if rates were in the region of 6%+.
"Lenders will continue to check that a mortgage is affordable both now and if interest rates increase in line with market expectations."
Link to the report