Mortgage stress testing has become an essential factor in determining affordability for home buyers. Lenders use these assessments to evaluate a borrower's ability to make repayments under potential financial stress, impacting the amount buyers can borrow.

What is mortgage stress testing?

Stress testing involves lenders assessing whether a borrower could still afford their mortgage if interest rates were to rise. This safeguard helps prevent defaults and ensures long-term affordability. With mortgage rates stabilising around 4% in 2025, Rightmove suggests that lending criteria will remain stringent but slightly more accessible for buyers.

How it affects home buyers

For many buyers, stress testing means they may qualify for lower loan amounts than expected, requiring larger deposits or alternative mortgage products. Understanding affordability calculations and working with a mortgage adviser can help buyers secure the best possible deal.

Navigating the mortgage process

If you're planning to buy a home, preparing for mortgage assessments is key. Get in touch with our team for expert mortgage advice and guidance on securing the best financing options.

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