"Improving our affordability rates could help make many customers’ dream home a reality, while continuing to have strong measures in place to ensure that they can make payments on their mortgage"
- Lee Chiswell - Barclays
Barclays has reduced its affordability rates across residential purchase and remortgage applications, a move that could enable customers to borrow more when buying a home. According to the bank, the updated rates may allow a family to borrow up to £30,750 more, depending on the application, individual financial circumstances and borrowing history.
The change is part of Barclays' ongoing efforts to support both first-time buyers and existing homeowners. It follows the introduction of several propositions earlier this year aimed at making homeownership more achievable. These include Mortgage Boost, which enables family or friends to increase the buyer’s borrowing potential without gifting or lending money directly, and a zero deposit mortgage specifically available for Right to Buy applicants.
Additionally, Barclays raised its maximum loan amounts for high loan-to-value (LTV) purchases. The new limits now stand at £640,000 for houses and £310,000 for flats, allowing more buyers to access homes in higher price brackets with just a 10% deposit.
Barclays has made a number of adjustments to its lending criteria throughout the year in response to changing market conditions and evolving buyer needs. The latest revision to affordability calculations reflects the bank’s wider approach to balancing responsible lending with increasing access to home ownership.
“We are delighted to increase the amount we can lend to customers looking to buy a home," says Barclays head of mortgages, Lee Chiswell. "We know there are many challenges facing people right now, whether it’s a first-time buyer trying to pull a deposit together or a family looking to move house.
"Improving our affordability rates could help make many customers’ dream home a reality, while continuing to have strong measures in place to ensure that they can make payments on their mortgage.”
