Vida Homeloans has introduced a significant overhaul to its residential affordability assessments.
The change is set to boost borrowing power for a wider range of customers, including first-time buyers, home movers and those looking to remortgage.
Under the revised criteria, borrowers opting for shorter-term fixed rate products will now be able to access higher loan amounts.
The changes are intended to tackle what Vida identifies as one of the primary barriers to home ownership: affordability.
Ross Williams, head of mortgage product management at Vida Homeloans, said: “Affordability continues to be one of the biggest barriers to home ownership, and at Vida, we’re committed to addressing it head-on.
“Our mission is to help more people find a place to call home, and that means designing solutions that make a real difference. That’s why we’re following up our popular 3&Easy, 97% LTV proposition with further enhancements to our mortgage affordability calculation, helping applicants borrow more.”
The lender said that, under the new affordability rules, two applicants each earning £25,000 annually — with a £300 monthly loan repayment over a 25-year term and no dependents — would now be able to borrow an additional £17,200 compared to previous assessments.
In a parallel move, Vida has launched a series of limited edition buy-to-let products at 75% loan-to-value, available on a 5-year fixed term.
The new range features fee options of 4% and 7%, with rates starting from 3.90%. The products are intended to offer added flexibility for landlords looking to improve yield or restructure their portfolios amid ongoing market pressures.
