Stress Tests for Mortgages - what are they currently?

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.

Depends on the lender.
For example some will stress test at 2% over the actual rate you will be paying, others at 2.5% over their standard variable rate.

A standard method of stress testing would be to work out the monthly repayments for your proposed mortgage based on the size, term and applicable rate (+2%). This figure should be less than 40% of your net disposable income (take home pay less loan repayments).

Depending on your salary you may be comfortable using a higher percentage of your net disposable income. The higher the salary, the higher the percentage used.

www.moneybackmortgages.ie

AIB is 5%

boi is 3% last i heard

We were stress-tested to 6% in August - a few months ago but may be a useful guide.