The impact of various stress tests on monthly cash flow Stress test Cash flow impact / £ (1) A fall of 5% in the market rent Calculation: £750 rent × 5% (38) (2) Mortgage rate increase from 3.5% to 5.0% p.a. Calculation: £263 monthly cost × 5.0% ÷ 3.5% − £263 (113) (3) An increase of 20% in the service charge Calculation: (£900 annual service charge × 20%) ÷ 12 (15) (4) An increase in repairs from 0% to 5% of the rent Calculation: £750 rent × 5% (38) (5) An increase of 10% in all the other costs Calculation: £210 per month (all other costs) × 10% (21) Total impact (225)
