Mortgages.scot

A question about the mortgage stress test which many mortgage applicants fall foul of, this one came in recently and I thought it was worth looking at it given so many are affected.

Despite the fact, we have a good credit rating (never missed a payment on anything), have a good income and we know the mortgage we want is very affordable for us we were told by both Bank A and Bank B we did not pass their affordability tests. Our rate at Bank A was going to be 1.75% fixed for 3 years. They said we need to be able it is affordable at 6.75% which seems frankly ridiculous. Is this really correct?

Stress Test

Yes, I am afraid so. Have a look at the guide I did within the mortgage affordability guide I did last year. The part on Stress Testing.

It explains why stress testing is used and the logic behind it. Hope that helps a little although I know it won’t help you in the way you want sadly.