Related topic: Affordability

The changes will benefit borrowers buying their first house, moving up the property ladder, or remortgaging.

Reduced minimum ICR increases borrowing power for landlords and changes to affordability stress tests will allow for greater residential borrowing.

40-year mortgages offer a flexible lifeline to first-time buyers, the figures show.

High property prices and elevated interest rates have made monthly repayments more difficult to manage, prompting many borrowers to extend their mortgage terms.

Customers can now borrow up to £55,000 more under the Society’s new stress testing.

Residential and buy-to-let rates have reduced by up to 0.54%, alongside improved affordability.

Medium-term potential for growth has been upgraded due to a more relaxed approach to mortgage affordability tests.

The change will support 12% more affordability-constrained buyers, with maximum loan amounts increasing by as much as 22%.

The changes mean borrowers could qualify for around £19,000 in additional borrowing.

The average loan size jumped by more than £11,500 to £205,882 between April and May.