The mutual has lowered stress rates for residential mortgage lending, which it said would increase maximum borrowing by 8% to 15% for some applicants, including first-time buyers, homemovers and remortgagors.
Brokers can use the mutual’s affordability calculator to see the changes.
Coventry for Intermediaries has made these adjustments in light of the Financial Conduct Authority’s (FCA’s) reminder that lenders can be flexible with their 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.”
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