The lender says the stress rate for residential movers is now 8%, while the rate for first-time buyers is 7%.
The business adds its residential criteria is unchanged from its latest update on 21 June, the key features of which include that the maximum loan to value is 75% in general, the maximum LTV for shared equity is 75% of full market value and the maximum LTV for shared ownership is 75% of the value of customer share.
The move comes after interest rates jumped across the board last week, following volatility in the sterling funding market after Chancellor Kwasi Kwarteng’s tax-cutting mini-Budget on Friday, with an average three-year fix jumping by 72 basis points to 5.85%, according to Moneyfacts.
The average 10-year fix lifted by 71 basis points to 5.39%, and an average two-year fix lifted by 43 basis points to 5.17%.
The average five-year fix rose by 26 basis points to 5.10%.
The market for available products has shrunk dramatically over the year and in the last week.
Over the year to the start of this month, the number of products on the market fell by 27% to 3,890 against a series of Bank of England base rate rises. In the last week following the Chancellor’s intervention available products fell a further 41% to 2,273.
