Major Lenders Boost Maximum Mortgage Loans

15 April 2025

• Halifax, Bank of Scotland, BM Solutions & Lloyds Bank update mortgage affordability for homebuyers and remortgages
• New Stress Test assessment adds up to 13% to typical maximum loan amounts
• Typical household could potentially borrow £38,000 more

Mortgage customers could be able to borrow more from today, 15th April, following changes to the affordability assessment used by Halifax, BM Solutions, Bank of Scotland and Lloyds Bank.

Adjusting Stress Rates

Stress Rates are one element used in affordability assessments to measure borrowers’ abilities to manage a loan should rates be higher when they finish their current deal.
From 15th April, the rates used by the lenders in their standard affordability calculation, and the enhanced affordability offered with 5 year-plus products, will be lowered. This will apply to applications for First Time Buyers, home movers and remortgage customers.

Customers could borrow more

The effect of these changes is that customers will, subject to full affordability testing, be able to borrow more than they can currently. Typical customers may see increases around 13% in the maximum loan available, for a family that could be in the region of £38,000.

Example:

Two adults, with two dependents. Household total income of £75,000, 25-year mortgage term, and typical credit commitments*:

*1% of gross annual income per month

Amanda Bryden, Head of Halifax Intermediaries, said:

“This is brilliant news for many would-be homebuyers who have struggled to either get on or move up the housing ladder, or those simply looking to get a better mortgage deal.

“It is always a careful balance when calculating whether a loan is affordable both now and in the future. While they are just one part of measuring affordability responsibly, the application of these new Stress Rates means a typical family could potentially borrow over £38,000 more and make it easier to turn their dream home into a reality.”