These adjustments have been made for residential purchase and remortgage applications, which Barclays said could enable a family to borrow up to £30,750 more than before. This will be subject to the application, financial circumstances and borrowing history.
This is based on a family with two dependants and a combined income of £120,000 per year, credit card debt of £10,000 and other commitments of £600 per month taking out a two- or five-year mortgage with a 35-year term.
Barclays is the latest lender to update its affordability, after the Financial Conduct Authority (FCA) confirmed that lenders had the flexibility to do this, even as the regulator consults on updating mortgage rules to broaden access to borrowers.
It follows the likes of Nationwide and Santander in allowing people to borrow more through adjusted affordability assessments.
This year, Barclays has made a number of changes to make homeownership more accessible, including the launch of its Mortgage Boost proposition, which allows family or friends to boost the amount that can be borrowed without having to lend or gift money directly and a zero-deposit mortgage for Right to Buy applicants.
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It also increased the maximum loan sizes for high-loan-to-value (LTV) purchases to £640,000 for houses and £310,000 for flats.
Lee Chiswell, head of mortgages at Barclays, said: “We are delighted to increase the amount we can lend to customers looking to buy a home. We know there are many challenges facing people right now, whether it’s a first-time buyer trying to pull a deposit together or a family looking to move house.
“Improving our affordability rates could help make many customers’ dream homes a reality, while continuing to have strong measures in place to ensure that they can make payments on their mortgage.”
