The society is offering five times income across its entire mortgage range, including up to 95% loan to value (LTV) with no minimum income requirement.
Stress tests have also been revised to base the affordability assessment on the borrower’s chosen mortgage rate.
The society estimates that the combined impact of the changes will be an uplift of around £19,000 in additional borrowing.
Andy Millard, Tipton & Coseley Building Society’s head of intermediary distribution, said: “These important changes will deliver a more tailored approach to affordability assessments, with full consideration of each borrower’s individual circumstances.
“It creates scope for us to increase the support we offer to brokers and applicants, while still lending responsibly.”
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Tipton & Coseley Building Society’s decision to loosen affordability follows the announcement by regulators that the LTI cap restricting lenders to 15% lending at income multiples above 4.5 would be scrapped immediately. Since then, a number of mortgage lenders have made changes to their mortgage affordability criteria to allow borrowers to increase the size of value of their mortgages.
Analysis by Stonebridge revealed that borrowers have already started to up their loan sizes, with mortgage balances increasing by more than £11,500 on average.
