Barclays has announced a series of updates to its mortgage policies designed to increase borrowing potential and improve access to home ownership, with changes spanning self-employed borrowers, interest-only customers and buy-to-let landlords.

The bank will now accept 100% of net profits after tax when assessing affordability for self-employed applicants, having also reduced the minimum loan threshold for such cases.

The move is expected to make borrowing easier for business owners and freelancers, many of whom have found it difficult to demonstrate consistent income levels since the pandemic.

Barclays has also increased flexibility for interest-only customers. Where a repayment strategy is based on the sale of the mortgaged property, the maximum loan to value has been lifted from 70% to 75%, provided the borrower holds at least £500,000 in equity.

BUY-TO-LET

For landlords, the lender has raised its maximum loan sizes for buy-to-let properties. The limit for new builds has increased from £500,000 to £550,000 at 60–75% loan to value, while the same uplift applies to flats at 70–75% LTV.

These latest enhancements follow a number of changes made earlier in the year to strengthen affordability and widen borrower eligibility. In the spring, Barclays adjusted its affordability model to enable some households to borrow up to £30,750 more, depending on their financial profile.

It also raised maximum loan amounts on high loan-to-value purchases to £640,000 for houses and £310,000 for flats, helping buyers with smaller deposits compete in higher-priced areas.

The bank has additionally launched several products aimed at improving access to the housing market, including its ‘Mortgage Boost’ scheme, which allows family or friends to increase a buyer’s borrowing capacity without providing a financial gift or loan, and a zero-deposit mortgage for Right to Buy applicants.