Relaxation of Stress Testing for Buy to Let Lenders
Landlords have faced significant challenges in passing rigorous stress tests, but a lender is now offering an affordability boost by reducing its buy to let and commercial mortgage stress rates.
Stress testing has become a major obstacle for landlords in recent years, with higher interest rates limiting borrowing capacity and making deals harder to secure.
According to Tom Worbey, senior lending product manager at Redwood, the reduction in stress rates across variable, two- and three-year fixed rates aims to ease the pressure on landlords.
Brokers tell us one of their biggest frustrations is stress rates. By lowering our residential BTL and commercial mortgage stress rates, we’re giving brokers more options and helping landlords achieve the leverage they need.
Affordability is a key concern in the current market, with landlords navigating higher costs and tighter yields, and brokers working harder to structure viable deals.
Author's summary: Lender reduces stress testing for buy to let loans.