FPC's stress test powers to be added to mortgage rules

If the proposal is accepted, mortgage lenders must take on board the FPC's stress test interest rate recommendation as well as taking into consideration "market expectations" and the 1% rule. The Mortgage Market Review rules, to be implemented on 26 April, require firms to consider the impact of future interest rate increases on an applicant's affordability over a minimum period of five years by 1%.  An example of "market expectations" is the forward sterling rate published on the Bank of England website.  The FPC will exercise this power if it feels market expectations are underst...