Family Building Society has updated its mortgage affordability model, allowing some borrowers to access higher loan amounts depending on their individual circumstances.
The changes, announced on 22nd October, are expected to particularly benefit borrowers on lower and middle incomes, with increases in borrowing capacity dependent on factors including mortgage rate, term, income, loan size and existing financial commitments.
According to the society, a borrower previously eligible for a £295,000 mortgage could now qualify for £342,000, an increase of £47,000.
In another example, a borrower previously able to access £155,000 could see their maximum loan rise to £180,000, an increase of £25,000.
The society says the revised affordability assessment will work alongside its existing lending criteria and manual underwriting approach, allowing brokers to support clients looking to purchase a home, move to a larger property or accommodate changing family circumstances.
Darren Deacon, head of intermediary sales at Family Building Society, commented: "This is a significant enhancement to our affordability offering and will allow us to support more customers with greater borrowing capacity where their circumstances allow. For some borrowers, this could mean access to tens of thousands of pounds in additional borrowing while continuing to meet our affordability responsibilities.
"For example, a customer previously qualifying for a £295,000 loan could potentially see this rise to £342,000 and borrowings of £155,000 would now rise to £180,000."
"Combined with our flexible lending criteria and manual underwriting approach, this change will be welcomed by brokers looking to help more clients purchase a home, move to a larger property or adapt to changing family circumstances. It further strengthens our ability to support those borrowers whose needs may not fit a standard lending model."
