Four lenders under Lloyds Banking Group have increased the maximum mortgage loans available, potentially allowing borrowers to access up to 13% more than before.
Halifax, Bank of Scotland, BM Solutions, and Lloyds Bank have adjusted their affordability assessments, effective today, 15th April.
Rates used by the lenders in their standard affordability calculation, and the enhanced affordability offered with 5 year-plus products, has been lowered.
This change is expected to help first-time buyers (FTBs), home movers, and remortgage customers by increasing their borrowing potential.
With these changes a typical household could borrow around £38,000 more, subject to affordability testing.
Amanda Bryden, head of Halifax Intermediaries, said: “This is brilliant news for many would-be homebuyers who have struggled to either get on or move up the housing ladder, or those simply looking to get a better mortgage deal.
“It is always a careful balance when calculating whether a loan is affordable both now and in the future.
“While they are just one part of measuring affordability responsibly, the application of these new Stress Rates means a typical family could potentially borrow over £38,000 more and make it easier to turn their dream home into a reality.”
