Agree, as per above the real stress test will be in 12 to 18 months time when fixed mortgages at lower rates expire and mortgage holders need to take on loans with higher rates.
The other factor in play here is so called "Liar Mortgages" where mortgage holders previously inflated their income to get the loan in the first place so their already stretched.
The final factor is when interest only loans switch over to Interest and Principal.
The X factor is how long higher then expected inflation lasts for.
