The lender will increase the rate from the current level of 6.73% on Tuesday 19 August.

Barclays said the move was as a result of the Financial Policy Committee’s new guidelines on affordability.

Under new rules lenders must consider how a 3% increase in Base Rate would affect a borrower’s ability to repay the mortgage.

The stress test rate applied to Help to Buy mortgage guarantee and Family Springboard cases will remain at its current level of 7.24%.

Earlier this year the bank made changes to its buy-to-let stress testing. Previously the lender tested buy-to-let applicants against 125% of pay rate but changed this to 125% of the 5.79% nominal rate in May.