What is a mortgage stress test and how do I pass it?

Every UK mortgage application goes through a stress test — lenders check that you could still afford the monthly payment if rates rose. Since 2022 these tests have tightened, which is the single biggest reason borrowing capacity has fallen.

What the stress test does

The lender re-calculates your monthly payment at a higher rate — typically the SVR plus 1–3% — and checks affordability against that bigger number, not the actual product rate.

The 2022 change

The FCA removed the mandatory 3% stress test in August 2022, but most lenders kept their own version. Combined with higher base rates, this is why a £400k loan in 2020 might only stretch to £320k today on identical income.

What you can do

• Clear small debts — every £100/month commitment removes £15k–£25k of borrowing.
• Stop using overdraft — lenders flag persistent overdraft use in the 3 months before applying.
• Choose a longer term — pulls the stressed monthly payment down.
• Pick the right lender — stress models vary considerably. A broker who knows the market can route your case to the most generous fit.
• Consider a 5-year fix — some lenders stress 5-year fixes at the product rate rather than a higher stressed rate.