In a note to its brokers, the bank said the the reduced stress test rate would apply to general residential cases including the Help to Buy equity loan scheme which it said would improve residential mortgage affordability for consumers.
The reduced stress test rate now stands at 6.74% and will be used with immediate effect.
A spokesman for Barclays said: “Following the Bank’s rate cut, we have reviewed the stress test rates and adjusted it accordingly.”
The Monetary Policy Committee made the historic decision to cut the Bank base rate from 0.50% to 0.25% last week, the lowest level it has ever been, while introducing a enhanced programme of quantitative easing which was increased by £60bn to £435bn and a scheme to buy £10bn of high-grade corporate bonds.
