Investigation: future of mortgagesJun 26 2024

High interest rates push mortgage stress tests above 10 per cent

After engaging with this content, which carries an indicative 30 minutes of CPD, you will be able to:

Describe lenders' liquidity issues
Explain Nationwide's lending policy
Identify the purpose of SVR

Describe lenders' liquidity issues
Explain Nationwide's lending policy
Identify the purpose of SVR

CPD

Approx.30min

CPD

Approx.30min

Search supported by

CPD

Approx.30min

High interest rates push mortgage stress tests above 10 per cent — Mortgage borrowers applying for two-year fixed deals are tested on whether they could afford to pay at least 1 per cent above the lender's standard variable rate (REUTERS/Carlos Jasso/File Photo)

Chloe Cheung

Average fixed mortgage rates are around 5 per cent; but responsible lending rules mean, in some cases, borrowers being tested on whether they could continue to meet their mortgage payments if rates entered double digits.

Unlimited access to our award-winning journalism

Read the full story with a free account

Read without interruption - full access to our reporting on the financial intermediary market
Bank CPD while you read
Share your perspectives
Stay in the know with our daily newsletter
Receive personal recommendations

Already have an account?Sign In

PAGE 1 OF 4