Changes to buy-to-let stress tests are not an armageddon moment for the sector despite worries from some quarters, Mortgages for Business managing director David Whittaker has claimed.
Lenders including The Mortgage Works, Keystone and Foundation Home Loans have all recent increased their stress teststo145% at pay rate from the previous level of 125%.
Whittaker said: "The change to stress testing is not an armageddon moment for the buy-to-let sector.
"If you take a look at the market and understand what is happening it makes sense for lenders to be increasing stress test formulas."
And Whittaker predicts that the current level is only a transition points to where these tests will end up - 156% for higher rate taxpayers and 167% for high rate.
"As much as the changes may not be welcomed we need to recognise that this is just a transition point. The exaxt mathmatical formula for stress tests shows that it should be 156% and that is where it will eventually go.
Whittaker was talking at FSE Manchester.
