On the self-employed side, the lender said it will accept 100% of net profits, or profit after tax (PAT), in affordability assessments and has cut the minimum threshold for PAT acceptance.
Barclays said this change would allow self-employed homebuyers to “borrow more and against a wider range of homes”.
The firm has also increased the maximum loan to value (LTV) to 75% for interest-only applications where there is at least £500,000 in equity and where the repayment vehicle is the sale of the property.
The maximum loan size for new-build BTL property has gone from £500,000 to £550,000 at 60-75% LTV.
For BTL flats, the lender has upped the maximum loan size from £500,000 to £550,000 at 70-75% LTV.
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The enhancements come after Barclays changed its affordability calculations, potentially allowing a family to borrow up to £30,750 more, subject to certain conditions.
The bank also tweaked the maximum loan amount for high-LTV purchases earlier this year. The maximum loan amounts have risen to £640,000 for houses and £310,000 for flats, which allows more buyers to get onto the property ladder in higher price brackets with a smaller deposit.
Barclays has also brought out new propositions, including Mortgage Boost – allowing family or friends to boost affordability – and a zero-deposit mortgage for Right to Buy applicants.
