Coventry for intermediaries has become the latest lender to update its mortgage stress test, giving typical borrowers the chance to borrow up to £35,000 more when buying their home.
The changes will reduce stress rates for residential lending, increasing maximum borrowing by 8-15% for many applicants. That means some first-time buyers, home movers and remortgagers could see an increase of up to £35,000 in their maximum loan amount.
The change comes at a time when mortgage rates are beginning to ease and also reflects the FCA’s recent reminder that lenders can apply flexibility to stress testing.
Kevin Purvey, director of mortgage distribution at Coventry Building Society, said: “In a market where affordability has become one of the biggest challenges, every bit of extra headroom can make a huge difference. We’ve taken a fresh look at our stress rates and made changes that will give brokers more options to help clients achieve their goals.
“It's a practical way of responding to what the FCA has signalled – and ultimately it’s about making homeownership a little more accessible. We know brokers are key in helping people navigate this market, and we’re committed to backing them with competitive lending options.”
