Leeds Building Society is revising its mortgage affordability assessment, potentially giving people the opportunity to borrow more.
The move follows a trend among lenders adjusting their stress-testing protocols after guidance from the Financial Conduct Authority (FCA). Stress tests are crucial in ensuring that borrowers can comfortably manage their mortgage payments.
Leeds' adjustments are set to aid first-time purchasers, those climbing the property ladder, or homeowners looking to remortgage, with some applicants possibly eligible for significantly higher borrowing amounts.
Andy Moody, chief commercial officer at Leeds Building Society, said: "We welcome the recent clarification on lending rules by the FCA which will allow us to support more people on to and up the property ladder and support the Government's plan for growth.
"Stress-testing requirements have unduly held some borrowers back from achieving their home ownership aspirations, so we are pleased to be able to lend up to £34,000 more to our customers as a result of these changes in affordability assessments. We continue to implement prudent affordability checks to allow us to continue lending responsibly."
This week, the FCA initiated a discussion paper on mortgages, sparking a "public conversation" about the future direction of the market. Potential modifications to mortgage regulations could advantage first-time buyers, individuals borrowing into retirement, and self-employed people.
The FCA reports that there are approximately 8.96m regulated mortgages across the º£½ÇÊÓƵ, with 3.6m renting households aspiring to become homeowners in the future.
Following the financial crisis of 2008, lending rules were tightened. The regulator has stated that this has resulted in a more robust market, with fewer borrowers falling behind on payments and more than 99% of mortgages initiated since 2014 being on track.
