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