The changes to the stress rates apply across the mutual’s full residential mortgage range.
This will offer “consistent and accessible approach for all owner-occupiers, including first-time buyers, who often face affordability challenges”.
Kathy Bowes, intermediary manager at The Cambridge, said: “Affordability remains a significant challenge for many, and these improvements demonstrate our [commitment] to help customers achieve their goals. These changes ensure we can still offer responsible levels of borrowing while continuing to provide the personalised support our members expect from The Cambridge.”
The change comes after the Financial Conduct Authority (FCA) gave clarification on stress tests earlier this year on how lenders may apply affordability stress rates.
Consequently, several lenders have updated their rates, boosting the borrowing power of a swathe of borrowers.
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