The Leeds Building Association has become the latest lender to alleviate its affordability stress test, allowing customers to borrow up to £34,000.
Mutual Aid will modify its borrower affordability assessment, which will reduce the stress test rate by up to 1.24% from tomorrow.
The move will apply to first-time home buyers, home movers and heavy-duty parameters, and typical applicants can borrow between £9,000 and £34,000.
The companies’ moves came after financial conduct authorities said in March that lenders were “too cautious” to grant FTB home loans under current rules.
Financial Conduct Authority CEO Nikhil Rathi told the U.S. Treasury Commission that under existing regulatory rules, lenders have some degree of “flexibility” in their stress tests that apply to home buyers who first enter the market, but they have not exercised.
“We welcome the latest clarifications from the financial conduct authorities on loan rules, which will allow us to provide a property ladder for more people and support the government’s growth plans,” said Andy Moody, chief business officer of the Leeds Building Association.
