A sudden surge in interest rates is forcing lenders to tighten mortgage affordability tests, reducing how much buyers can borrow.
The shift has been swift and largely unexpected, experts told The i Paper, being driven by financial markets rapidly changing their view on where interest rates are heading.
Affordability calculations are a crucial part of the mortgage process. Lenders must “stress test” borrowers to check whether they could still afford payments if interest rates rise.
The tougher the stress test, the less a buyer can borrow. Recent changes mean those tests are already becoming more restrictive.
Shorts
Can I save money without giving up fun?
Kasia Delgado
Chief Features Writer
When it comes to financial planning, I’ve always lived month to month, but recently I’ve wanted to be slightly more serious.
So I spoke to a range of financial experts for the easiest, idiot-proof ways to be savvier with money – without just hibernating.
The expert tips
Print out your bank statements
“This is the hardest step but you’ve got to know what’s coming in and out, down to the pound,” says financial coach Ian Dempsey. You’re more likely to remember what’s on there, and pay attention to it on paper.
Caption: Kasia Delgado reads old letters from her childhood. A professor of happiness at Bristol University taught Kasia how adults can train themselves to be happier and find more joy, like when they were unencumbered children.
Photographer: mail@teripengilley.com Provider: Teri Pengilley / i News Source: Teri Pengilley
Caption: Kasia Delgado, Chief Features Writer, i News. Photographer: Teri Pengilley Provider: Teri Pengilley / i News Source: Teri Pengilley
Draw an image of what you’re saving for
“Anything that requires discipline is much easier to achieve when you [can picture] the end goal,” says Ruth Power, from the Financial Management Bureau.
The expert tips
Experts are arguing that the UK should make greater use of existing government data Photographer: Andrzej Rostek Provider: Getty Images Source: iStockphoto Copyright: andrzejrostek@gmail.com
Go on a money date
If you’re in a relationship, for 30 minutes once a month, take a notebook to the pub/cafe and talk about money with your partner.
Delete shopping apps…
They are designed to be compulsive. Removing them gives you an extra layer of resistance.
Close up of an unrecognizable woman shopping online with credit card via mobile phone – stock photo. (Photo: Getty)
An image of a hand that quickly sends an email – stock photo. (Photo: Getty)
…and unsubscribe
Marketing emails are designed to reach you when you’re likely to spend money.
How it went when Kasia followed the expert advice
I delete Vinted and only re-download it when I actively want to replace something for my son that he’s grown out of.
I’m no longer buring my head in the sand. Sections of my bank statement flash into my mind when I go to use the Uber app.
Money dates have been uncomfortable. We did have a small argument about buying own-brand beans versus Heinz for example, but scribbling down numbers we want to save has also been exciting.
I have found it easier to be mindful about spending and broke some unhelpful habits, like associating walks with always getting a coffee.
How the UK currently saves
The average person in the UK has £16,067 in savings in 2025.
39%
However, 2 in 5 Britons have £1,000 or less in savings. A quarter have £200 or less.
1 in 6 UK adults (16 per cent) have no savings at all, equating to around 8.4 million people.
82%
Men are estimated to have 82 per cent more in savings than women.
Almost three in 10 (28 per cent) of adults state saving money is a habit.
The final verdict
The truth is, I’m never going to be someone with five side hustles and the financial savvy to become a bitcoin billionaire. But I’m no longer thinking, “where did my salary go?”. The small changes have, over time, made a difference to my bank account, but also my mind and self confidence.
KASIA DELGADO
‘I’ve found greater joy in spending money in an active, more conscious way – on things that felt worth it such as a massage, a cocktail with a friend, a comedy gig, a tricycle for my son,’ says Delgado (Photo: Teri Pengilley/The i Paper)
Six easy swaps to increase your fibre intake
We asked the experts why it’s so important to include enough fibre in our diets, and how to do it without totally overhauling our diets…
Why fibre is important
Fibre isn’t a fad nutrient. It’s been consistently linked to better health outcomes for decades. Unlike protein, which the majority of people already get enough of, fibre is something most of us (96 per cent) are significantly lacking.
NICHOLA LUDLAM-RAINE, SPECICIALIST REGISTERED DIETITIAN AND AUTHOR
The small diet tweaks to make
Beans, lentils and chickpeas are fibre powerhouses, with around 6-8g per half-tin. If you find beans tricky to digest, start with microdosing them for a week and gradually build it up to half a can at a time.
Bread is the category of food that is most thrown away, survey finds (d3sign Provider: Getty Images)Caption: Green vegetable salad with chickpea, spinach, cucumber, red onions, and greens on a wooden table. Top view Photographer: Qwart Provider: Getty Images/iStockphoto Source: iStockphoto
One of the simplest changes you can make is to switch to wholegrain versions of everyday carbs. Swapping two slices of white bread for wholemeal adds around 3g of fibre.
How to add fibre to your diet
When you cook potatoes the right way they go from being a health burden to a health hero (Photo: Getty)
Keep some skin
The skin of some foods can contain up to 50 per cent of the total fibre. Just make sure it’s safe to eat.
Level up the snacks
Berries, raw vegetables with hummus, or a small handful of nuts are all easy fibre wins.
Yoghurt and frozen berry crunch in a glass jar – stock photo. (Photo: Getty)
Breakfast cereals can be swapped out for overnight oats (Photo: Jogy Abraham/ Getty Images)
Don’t skip seeds
Ludlam-Raine adds a spoon of mixed seeds to porridge, cereal, yoghurts, soups and salads.
A few extra handfuls of fibre-rich ingredients might be all that’s needed to take your meals from average to fibre-full.
Small changes are key because they’re more sustainable and better tolerated by the gut. Increasing fibre too quickly can cause bloating or discomfort.
One in four people in the UK is living with mould and/or damp in their home…
David Prince, a leading damp surveyor who travels across the country treating mould, spends the day with The i Paper writer Eleanor Peake.
Surveyor David Prince warns people are being overcharged by rogue companies for unnecessary treatment (Photo: Teri Pengilley)
The UK
Britain’s damp problem is one of the worst in Europe.
45%
Private renters are disproportionately affected, with 45 per cent currently battling symptoms of damp.
30%
From 2015 to 2024, British winters were 16 per cent wetter than in previous years.
By 2070, UK winters are projected to be up to 30 per cent wetter.
The house I visited with David Prince – a private rental
Renters are desperate for a resolution to their ongoing damp issue.
David notes that although the bathroom has an extractor fan, the room wasn’t being ventilated efficiently.
The hot air from the bathroom was floating towards the coldest part of the building (the bedroom) and turning into water as it hit the cold bedroom walls.
This was an internal ventilation issue, other houses have an external issue. When the guttering is overgrown the water has to go somewhere else, sometimes seeping back into the brick.
The houses most at risk
Victorian terraces, or those built in the 1910s, are more likely to have rising damp – where the water seeps through the foundation of the house.
Caption: David Prince, Director of Abbott Property Care Ltd. For a feature on damp by Eleanor Peake, Senior Features Writer at The i Paper. Photographer: Teri Pengilley Provider: Teri Pengilley / The i Paper Source: Teri Pengilley Caption: David Prince, Director of Abbott Property Care Ltd. For a feature on damp by Eleanor Peake, Senior Features Writer at The i Paper. Photographer: Teri Pengilley Provider: Teri Pengilley / The i Paper Source: Teri Pengilley
Modern houses are often built with concrete ring beams, one of the coldest materials to build with. The damp turns to condensation just by hitting the walls.
Damp specialists
Caption: Eleanor Peake, Senior Features Writer at The i Paper, meets David Prince, Director of Abbott Property Care Ltd, to examine the issue of damp in rental properties. Photographer: Teri Pengilley Provider: Teri Pengilley / The i Paper Source: Teri Pengilley
Only a small number of damp specialists – around 250 – are registered with the Property Care Association (PCA) in the whole of the UK.
This means that a majority of people in the UK are receiving quotes and recommendations about damp from building surveyors who aren’t qualified to give a diagnosis, says Prince.
The golden rules for managing damp
The most common issues can be solved by simple tweaks.
Start with the outside. When it’s raining, have a walk around your building to see if the gutters are pouring water down the wall, or water is being trapped in some way.
Make sure you have good ventilation in key wet rooms: kitchen, bathroom, utility, and toilets.
Open all your windows every day for a short period of time to force natural ventilation – even on cold days.
Never place furniture, or even pictures, on an external wall if it suffers from mould. It helps retain moisture.
Woman awaking after sleeping well in a nice sleeping room. – stock photo. (Photo: Getty)
SLEEP
How to reset your sleep
Irregular sleep has been linked with poorer cardiovascular health, metabolic disruption, inflammation and mood imbalances.
If your sleep has fallen out of whack, this is what the experts recommend.
From personalised ‘sleep windows’ to unhelpful bedtime routines.
Consistency in bedtimes
It helps the brain feel safer and more predictable around sleep, which is important for people with insomnia. When sleep and wake times are consistent, that clock stays well aligned. When sleep timing is all over the place, the body clock becomes confused…
dr ZOE GOTTS, CONSULTANT CLINICAL PSYCHOLOGIST AT THE LONDON SLEEP CENTRE
Couple sleeping in bed – stock photo. (Photo: Getty)
The changes to make
Sleep tourism in hotel. Exhausted woman sleeps sweetly in bed in the morning – stock photo. (Photo: Getty)
Find your sleep window
When do you naturally start to feel tired? Aim to allow your body to sleep within that timeframe most nights.
Wake at the same time
Pick a wake-up time you can stick to and anchor everything around that, says Dr David Garley, sleep expert.
Sleep doesn’t have to be so complicated (Photo: Olga Pankova/Getty)
Caption: TOPSHOT – NASA’s Artemis II Space Launch System (SLS) rocket is seen at sunrise at the Kennedy Space Center in Cape Canaveral, Florida on April 1, 2026. On Wednesday three men and one woman are set to embark on the first crewed journey to the Moon since 1972, a landmark odyssey that aims to launch the US into a new era of space exploration. The NASA mission dubbed Artemis 2 has been years in the making after facing repeated setbacks, but is finally scheduled to take off from Florida as early as April 1 at 6:24 pm (2224 GMT). (Photo by Gregg Newton / AFP via Getty Images) Photographer: GREGG NEWTON Provider: AFP via Getty Images Source: AFP Copyright: AFP or licensors
Get out into sunlight
Exposing yourself to daylight soon after waking helps to sync your circadian rhythm, says Dr Garley.
How to reset your sleep
Regulate your nervous system
Many people are running on exhaustion but still in a state of high alert, so might not be able to rest when needed, says Dr Gotts.
Gentle routines, reduced evening stimulation, and calming the body can make a huge difference.
Sleep tourism in hotel. Exhausted woman sleeps sweetly in bed in the morning – stock photo. (Photo: Getty)Senior bed woman problem pain headache home elderly mature pain bedroom upset unhappy female caucasian adult relationship retirement old difficulty ache head sick migraine hangover sleep – stock photo. (Photo: Getty)
Don’t spend too long in bed
If you cannot sleep within 20 minutes, get out of bed, ideally out of the bedroom, and find a relaxing and distracting activity to do while you wait for the natural urge to return.
The tweaks to make to reset sleep
(Photo: AzmanL/Getty/E+)
Look at your bedtime
Don’t presume earlier to bed (ie. more time in bed) equals better sleep. The timing needs to fit you.
It might mean going to bed later
Set an alarm to anchor the wake-up time, then choose a bedtime that allows you to fall asleep easily and aim to sleep solidly within that time.
Woman in bed at night having trouble sleeping. – stock photo. (Photo: Getty)
A mature woman lies in bed and reads a hardback book – stock photo. (Photo: Getty)
Don’t overdo it
Too much preparation can increase pressure around sleep so a short and consistent routine is far more effective.
Weight training has a host of benefits, but only if it’s done correctly.
We asked personal trainers the common mistakes that people make when lifting – especially for the first time or early on in their strength journey – and how to avoid them.
Woman lifting barbell with heavy weights in cross training gym – stock photo. (Photo: Getty)
Priotising weight over form
When the load is too heavy, form usually breaks down, the wrong muscles take over, and the risk of injury goes up. If you can’t control the lowering part of the movement, keep good posture, or move through the full range, you’re compromising.
CELEBRITY TRAINER AND PT AIMEE LONG
The mistakes you could be making
Close up of male athlete gripping heavy green kettlebell during strength training exercise in cross training gym – stock photo. (Photo: Getty)
Not progressing
If you’re reaching for the same pair of dumbbells each week you’re likely just maintaining muscle, not building.
The wrong trainers
You need adequate support for your ankles, without overly cushioning your arches.
Find the best shoes for you (Photo: Xavier Lorenzo/Getty/Moment RF)
Woman at the Gym – stock photo. (Photo: Getty)
Not timing your rest
PT Nancy Best’s advice is to take 90 seconds of downtime before picking your weight back up.
Research has found that strength training can help slow bone loss (Photo: FJ Jimenez/Moment RF via Getty)
Neglecting recovery
Progress does not happen during the workout itself; it happens afterwards when your body repairs and rebuilds.
Poor sleep, not eating enough calories or protein, or training the same muscles hard every single day can hinder recovery and leave you constantly exhausted, says Long.
Not choosing the right exercises
An effective programme is built around variety.
Ensure your training includes each movement for the upper and lower body.
PT Luke Worthington recommends a push/pull programming.
Upper body push targets the shoulders or chest and upper body pull typically works the back.
Lower body push includes squats and leg press whereas pulls include deadlifts and hinges.
What to do
Perfect the movements before increasing the weight.
Best recommends Nike Metcons or Converse for a flat, stable surface.
Aim to eat 1.4-2g of protein per kilogram of bodyweight if you’re regularly exercising.
When you’re comfortable you can increase the weight, number of sets or reps, or range of motion to progress each lift.
LIFESTYLE
6 min read
Mortgage rates are rising on the back of predictions that the base rate could increase as much as four times following the conflict in Iran.
At the heart of the change are “swap rates” – the wholesale borrowing costs that lenders use to price fixed-rate mortgages. These have risen sharply in recent weeks, pushing mortgage rates higher.
Peter Stimson, director of mortgages at MPowered Mortgages, said the speed of the move has already fed through to borrowers.
“In just over three weeks, interest rate swaps have risen by around 1 per cent. This increase has nearly all now been passed onto new mortgage customers in the form of higher mortgage rates.
“If this wasn’t troubling enough for a mortgage and housing market that, until the start of March, had been starting to show some signs of recovery, the rapid increase in rates has also denied many homebuyers’ aspirations as lenders have reset their affordability calculations.”
Given the rise that has occurred, nearly all lenders have now increased the stress scenario, or rate, by 1 per cent to between 7.5 per cent and 8 per cent, Stimson said. Usually it is 5.5 per cent upwards.
This rate acts as a what if scenario for lenders to see if borrowers could afford repayments with interest rates of that level.
That could have a significant impact, particularly for first-time buyers and those stretching their finances to move up the property ladder.
“A one percentage point increase in the rate used for affordability stress testing will not translate into the same reduction in every case, but a fall of around 10 to 15 per cent would be a fair rule of thumb for many borrowers, depending on income, outgoings, term, and the lender’s affordability model,” according to Nick Mendes of brokers John Charcol.
Until recently, the trend had been moving in the opposite direction. Falling interest rates had allowed lenders to ease stress testing and improve affordability.
David Hollingworth of L&C Mortgages said: “The mortgage market has enjoyed a good deal of positivity in the last year or two.
“Lower interest rates were helping to improve the outlook for borrowers and that was only helped by lenders being able to take a more flexible approach to their stress testing of borrowers.
“Improvement in stress rates helps more borrowers to meet their required borrowing level, something that’s often particularly important for those buying their first home or stretching to move up the property ladder.”
But that progress is now under pressure as expectations shift, he said.
“The outlook for interest rates has taken a swift about turn and the potential for rising rates could force a rethink for lender stress rates unless there’s an easing in the conflict.
“If interest rates are set to rise and remain higher for longer, it will inevitably feed through into lender affordability calculations and potentially reduce the level of available borrowing.”
Early signs of that rethink are already emerging as Santander increased some of its affordability rates, particularly for buy-to-let borrowers, last week.
A spokesperson said: “To ensure we continue to lend responsibly in an increasing interest rate environment, we are increasing our stress rates across buy to let, and two-year remortgage rates.”
HSBC said it has taken the decision to increase its residential affordability stress rates while NatWest and Yorkshire Building Society said they are continuing to monitor developments while maintaining access to home ownership.
Behind the scenes, major lenders are emphasising support for borrowers, rather than abrupt tightening.
Hollingworth said the impact may build gradually instead.
“That could undo some of the more accommodating conditions that lower interest rates have helped to deliver.
“There’s nothing to indicate significant tightening so far but it’s another potential longer-term impact that borrowers need to be aware of, as well as the rapid change in interest rates.”
He added that lenders are still likely to prioritise first-time buyers where possible.
“Lenders have been particularly focused on first time buyers in delivering better affordability and I’d expect that they will continue to provide as much flexibility as they can.”
But the combination of rising mortgage rates and stricter stress testing represents a double squeeze.
Borrowers are facing higher monthly costs, while also being allowed to borrow less.
The average two year fixed rate mortgage is now 5.75 per cent whilst the average five year is 5.69 per cent, according to Moneyfacts.
This is likely to rise even further if the Bank of England ups the base rate as expected from its current level of 3.75 per cent.
Stimson warned that what happens in future will depend on whether the current spike in rates proves temporary.
“While the recent rise in rates is hopefully just a short-term reaction to concerns over oil and gas prices, should it something that lasts months rather than weeks, the knock-on effects for the housing market and general economy could become a serious concern.”
