Leeds Building Society has adjusted its affordability stress tests, allowing homebuyers to borrow up to an additional £34,000. This change, effective from tomorrow, will apply to first-time buyers, home movers, and remortgagers, with typical applicants able to borrow between £9,000 and £34,000 more.
The lender is reducing stress testing rates by up to 1.24%, following similar moves by other major institutions like Barclays, Nationwide, NatWest, Lloyds Banking Group, Santander, Hodge, and Accord Mortgages, all of which have recently relaxed their borrowing criteria.
This shift in lending policies comes in response to feedback from the Financial Conduct Authority (FCA), which earlier this year noted that lenders had been overly cautious in their affordability assessments, particularly for first-time buyers. The FCA has since clarified that there is flexibility within existing rules, which lenders have now started to utilise more effectively.
Leeds Building Society’s decision is aimed at increasing support for individuals looking to enter the property market, aligning with broader government goals to boost growth in the housing sector.
