The stress rate has been reduced from 5.5 per cent to 4.5 per cent for buy-to-let purchase or remortgage with additional borrowing
Martese Carton (pictured), director of mortgage distribution at Leeds Building Society, noted that borrowers are looking for more certainty over costs, causing a notable trend toward longer term fixes “even before we moved into a rising inflation and interest rate environment.”
Carton added that the stress rate reduction gives applicants greater borrowing power, as well as stability and security over monthly payments and an added opportunity to capital raise to improve their properties’ energy efficiency.
“This change will support more borrowers’ aspirations and give them stability and security over their monthly payments,” she said.
