Barclays has reduced its affordability rates for residential mortgages, in a move that will enable some homebuyers to borrow significantly more than before.
The change, effective immediately, applies to both purchase and remortgage applications and could allow families to access up to £30,750 in additional borrowing, depending on individual financial circumstances and credit history.
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 home a reality, while continuing to have strong measures in place to ensure that they can make payments on their mortgage.”
The bank’s revised affordability calculations reflect its response to ongoing affordability pressures, particularly for those seeking to step onto or move up the property ladder amid high inflation, elevated interest rates and the lingering effects of the cost of living crisis.
The change follows a series of recent product and policy changes from Barclays designed to support access to home ownership. These include the Mortgage Boost product, which allows family or friends to support a buyer by increasing the amount they can borrow without having to contribute funds directly.
In addition, Barclays has introduced a no-deposit mortgage tailored to Right to Buy applicants, and raised its maximum loan limits for high loan-to-value purchases. The new thresholds – up to £640,000 for houses and £310,000 for flats – mean more borrowers can access higher-priced homes with as little as a 10% deposit.
