The lender said the changes followed clarification from the Financial Conduct Authority (FCA) about stress testing rules earlier this year.
Leeds Building Society said the change would come into effect from 27 June and would help first-time buyers, borrowers moving up the property ladder or those remortgaging their existing home.
Crucially, the firm said applicants will be able to borrow between £9,000 and £34,000 post-stress test change.
Andy Moody, chief commercial officer at Leeds Building Society, said: “We welcome the recent clarification on lending rules by the FCA, which will allow us to support more people onto and up the property ladder and support the government’s plan for growth.
“Stress testing requirements have unduly held some borrowers back from achieving their homeownership aspirations, so we are pleased to be able to lend up to £34,000 more to our customers as a result of these changes in affordability assessments.
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“We continue to implement prudent affordability checks to allow us to continue lending responsibly, as we have done for the past 150 years.”
Leeds Building Society is the latest lender to change its stress rate, with others including Newcastle Building Society, Skipton Building Society, Nationwide, Hodge, Accord Mortgages, NatWest, HSBC, Precise and Lloyds Banking Group.
