Lenders try to move fast and fix things in UK BTL market

Relaxing stress tests when buy-to-let clients switch banks to remortgage is key to avoiding a credit squeeze

On June 22, the Bank of England sprung a surprise on markets by hiking rates by half a percentage point – faster than the previous sequence of 0.25 percentage point rises – to 5%. In response, UK finance minister Jeremy Hunt announced a package of proposals designed to make it easier for banks to offer forbearance to homeowners who struggle with the steep climb in mortgage repayments since the current tightening cycle began at the end of 2021.

But there was no mention in Hunt’s announcement of

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