this post was submitted on 22 Jun 2023
36 points (97.4% liked)

UK Politics

3022 readers
278 users here now

General Discussion for politics in the UK.
Please don't post to both !uk_politics@feddit.uk and !unitedkingdom@feddit.uk .
Pick the most appropriate, and put it there.

Posts should be related to UK-centric politics, and should be either a link to a reputable news source for news, or a text post on this community.

Opinion pieces are also allowed, provided they are not misleading/misrepresented/drivel, and have proper sources.

If you think "reputable news source" needs some definition, by all means start a meta thread. (These things should be publicly discussed)

Posts should be manually submitted, not by bot. Link titles should not be editorialised.

Disappointing comments will generally be left to fester in ratio, outright horrible comments will be removed.
Message the mods if you feel something really should be removed, or if a user seems to have a pattern of awful comments.

!ukpolitics@lemm.ee appears to have vanished! We can still see cached content from this link, but goodbye I guess! :'(

founded 1 year ago
MODERATORS
 

Sunak will be feeling the pressure from this if inflation doesn't actually come down.

you are viewing a single comment's thread
view the rest of the comments
[–] GreatAlbatross@feddit.uk 2 points 1 year ago (1 children)

I remember looking at the 10% stress test on the paperwork and thinking "oof", but feeling a bit safer that people are at least being made aware of this when they take out a mortgage.

This was brought in last year to change the way stress testing on applicants runs. Previously, you had to be able to withstand 7% (iirc, don't quote me), it's now a 1% rise stress test, though the 4.5x salary limits still apply.

[–] mannycalavera@kbin.social 1 points 1 year ago

AHH interesting that makes more sense then because we remortgaged before those changes in the rules.

As an example, a borrower taking out a two-year fixed-rate mortgage at 2.2% with a revert to rate of 4% would need to show they could afford the monthly repayments on a rate of 7%.

I mean... they ain't going to be coming off onto the 4% 🥲 but stress testing at 7% should still (for the time being) mean that everyone with a mortgage should have been aware of the risks and budgeted accordingly. No?

No-one wants to pay more of course.... I have sympathy for that. I just don't understand the shock that some people are claiming.