The Mortgage Works (TMW) has lowered the stress rate for lower rate taxpayers to 125 per cent interest coverage ratio (ICR), bringing it line with those available for limited companies.
Lower rate taxpayers used to be stressed at 145 per cent or 170 per cent ICR.
The change means that for like-for-like remortgages, five or 10-year fixed rates and tracker and variable deals lower rate taxpayers will be stressed at a lower rate.
For like-for-like remortgages the higher of pay rate 0.5 per cent or 5.5 per cent will apply, whilst for five or 10-year fixed rate a pay rate of plus 0.5 per cent will apply.
For tracker and variable deals, the higher pay rate of plus 2.75 per cent or 5.5 per cent will apply.
For further advance applications, individual loan elements will continue to be stressed separately in line with the above.
TMW added the stress rate applied to existing lending will also be set to a minimum of the stress rate applicable to new lending.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
