Family Building Society said the changes applied to the affordability model for owner-occupier repayment and interest-only mortgages, suggesting the update would enable borrowers to access loans as much as 25% more than previously.
This includes an update to its projection of future stress rates for non-five-year fixes and adjustments to its background cost-of-living expenses.
Darren Deacon, head of intermediary sales at Family Building Society, said: “This significant uplift in the amount of borrowing we are able to offer will provide a welcome helping hand for those looking for the next step on the housing ladder or older borrowers who continue to be shunned by the high street lenders. This announcement, coupled with our manual underwriting, which considers each application on a case-by-case basis, will mean that even more borrowers can benefit from our unique mortgage offering.
“Alongside our ongoing commitment to continue paying the same proc fee for product transfers as we do for new business, unlike many other lenders, this change to our affordability model demonstrates our continual commitment to the borrower and to our intermediary partners.”
Earlier this month, the mutual lowered rates across its owner-occupier range.
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