Leeds Building Society has changed how it checks what borrowers can afford, reducing affordability stress testing rates by up to 1.24%.
This means typical borrowers could get up to £34,000 more for a mortgage.
The update follows new guidance from the Financial Conduct Authority (FCA), and will apply from 27th June 2025.
The society said this move will help more people buy their first home, move up the property ladder or remortgage.
For example, a single first-time buyer (FTB) earning £38,000 could now borrow £184,000, up from £175,000.
A family of three with a joint income of £80,000 could borrow £359,000, up from £343,000.
In another case, a single applicant with two children and £75,000 income could remortgage up to £334,000, an increase of £34,000.
These changes do not apply to the society’s Income Plus mortgage range or direct-to-consumer mortgages.
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 onto 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, as we have done for the past 150 years.”
