Below is an update from Central Trust. Contact our team today for more information.
Announcement
Our stress test is changing
Due to the recent Bank of England interest rate rises, we have revised the existing stress test currently applied to a regulated mortgage contract which does not have 5 years or more remaining on a fixed rate.
All new business entered into the portal as of today, will be subject to the following:
The customer’s first mortgage will be stressed by 1% but to a minimum of 6.5%
For example
- If the customers current mortgage rate is 2% the portal will stress at 6.5%
- If the customers current mortgage rate is 6% the portal will stress at 7%
- The Central Trust rate will continue to be stressed by 3%
- Pipeline business is unaffected by this change
If you have any questions please do not hesitate to contact your BDM directly, or the mortgage desk on 0800 032 528.