Barclays has announced a series of changes to its mortgage policies designed to increase borrowing capacity for a wider range of homebuyers, including self-employed customers, interest-only borrowers and buy-to-let landlords.
For self-employed applicants, the bank will now accept 100% of net profits (Profit After Tax) in affordability assessments and has lowered the minimum loan threshold for this criteria, meaning more customers will be able to borrow against a greater choice of properties.
Barclays has also increased flexibility for interest-only mortgages. Applicants with at least £500,000 in equity can now borrow up to 75% loan-to-value where the sale of the property is the repayment vehicle.
In the buy-to-let market, the lender has raised its maximum loan size from £500,000 to £550,000 for new build properties at 60-75% LTV, and for flats at 70-75% LTV.
These updates follow a range of recent improvements to Barclays’ lending criteria aimed at supporting affordability and home ownership.
Earlier this year, the bank revised its affordability models, enabling some families to borrow up to £30,750 more depending on individual circumstances.
It also increased maximum loan sizes for high LTV purchases to £640,000 for houses and £310,000 for flats, allowing more buyers to purchase homes with deposits as low as 10%.
In addition, Barclays has introduced new propositions such as Mortgage Boost, which lets family or friends support buyers without gifting funds directly, and a zero-deposit mortgage for Right to Buy applicants, further extending access to home ownership.
