Barclays cuts residential stress test by 0.25%

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Barclays has cut its residential mortgage stress test rate by 0.25 per cent to 6.74 per cent.

The cut takes place immediately and mirrors the Bank of England base rate cut from 0.50 per cent to 0.25 per cent last week.

A Barclays broker note says the new stress test rate applies to standard residential lending.

This includes the Help to Buy equity loan scheme.

The vote last week by the Bank’s Monetary Policy Committee was unanimous.

Most MPC members expect the rate to be cut to near zero by the end of the year.