Barclays has relaxed affordability tests for borrowers, reducing the stress rate and increasing the loan-to-income ratio.
Barclays logo on the building. Glasgow, United Kingdom.
In an email to brokers, the lender said the changes will allow some customers to borrow more.
Barclays has reduced the stress rate on residential mortgages to 85% of the loan value.
It says: “Whether your customer is buying their first home, moving up or refinancing, this change can make a meaningful difference in what is achievable.
“You can see how this will benefit your customers on our housing affordability calculator.”
In addition, Barclays says it has increased income multiples for applicants who collectively earn a total gross income between £35,000 and £75,000 per year.
It says: “Following recent affordability improvements, we know more and more customers are reaching LTI limits, so this update is designed to support those who might otherwise be limited.”