What are the current stress tests for mortgages?
If I am trying to figure out what can I afford - how do I stress test it?
Are there a list of guidelines anywhere?
The stress testing used to be a percentage of someone's income rather than a multiple of salary, isn't that right?
Like less than 40% of income was considered 'affordable'. Is that still the case.
So that in fact, in some peoples' cases, even though their remaining income actually took them below a net income where they would qualify for Family Income Support, because it was less than 40% of income - then that was still considered 'affordable'.
Why is Stress testing of mortgages not linked to Family Income Support thresholds plus x % interest rate increase?
Wouldn't that be safer way to do it, rather than a percentage of income or salary multiplier.
If I am trying to figure out what can I afford - how do I stress test it?
Are there a list of guidelines anywhere?
The stress testing used to be a percentage of someone's income rather than a multiple of salary, isn't that right?
Like less than 40% of income was considered 'affordable'. Is that still the case.
So that in fact, in some peoples' cases, even though their remaining income actually took them below a net income where they would qualify for Family Income Support, because it was less than 40% of income - then that was still considered 'affordable'.
Why is Stress testing of mortgages not linked to Family Income Support thresholds plus x % interest rate increase?
Wouldn't that be safer way to do it, rather than a percentage of income or salary multiplier.