The Cambridge Building Society has moved to strengthen support for residential borrowers by increasing its affordability stress limits, a change it says will allow some customers to borrow as much as £33,000 more than before.
The adjustments apply across its full residential mortgage range, offering a uniform approach for all owner occupiers, including first-time buyers who continue to face well documented affordability pressures.
The lender has revised its affordability assessment following recent clarification from the Financial Conduct Authority regarding the application of affordability stress rates. The introduction of an enhanced stress test is intended to create additional headroom for borrowers without compromising responsible lending standards.
Kathy Bowes, intermediary manager at The Cambridge, said: “Affordability remains a significant challenge for many, and these improvements demonstrate our committed to help customers achieve their goals.
“These changes ensure we can still offer responsible levels of borrowing while continuing to provide the personalised support our members expect from The Cambridge.”
ROOM TO ADJUST
The FCA’s guidance has given lenders scope to refine the way they apply future rate modelling within affordability assessments. The Cambridge’s response mirrors a wider trend in the market, with several regional and national lenders reviewing their stress assumptions in line with the regulator’s position on how affordability tests may be calibrated.
The Cambridge said the shift is designed to reflect a more realistic view of borrowers’ future payment capacity while maintaining prudent oversight. For first-time buyers in particular, even modest changes to stress calculations can materially affect borrowing potential, especially in higher priced regions.
SUPPORT FOR A BROADER RANGE OF BORROWERS
The building society emphasised that the updates will apply consistently across its residential range rather than being targeted at specific cohorts. The intention is to simplify the experience for both borrowers and intermediaries, ensuring a single affordability framework regardless of property type or buyer profile.
With affordability continuing to constrain activity across the market, any changes that enable borrowers to access greater loan amounts — while remaining safely within regulatory parameters — are likely to be closely watched by brokers and rival lenders.
The Cambridge said the move aligns with its long-standing commitment to support members through tailored underwriting and personal service, particularly at a time when many households are navigating higher living costs and shifting interest rate expectations.
