Vida Homeloans has relaxed its residential affordability assessments, allowing customers to borrow over £17,000 extra on shorter-term fixed-rate products.
The specialist lender says its new calculations apply to first-time buyers, home movers and remortgagers.
These changes could mean two applicants each earning £25,000 a year, with a £300 monthly loan repayment over 25 years and no dependents, could now borrow an additional £17,200 under the new criteria.
Vida Homeloans head of mortgage product management Ross Williams says: “Affordability continues to be one of the biggest barriers to home ownership, and at Vida, we’re committed to addressing it head-on.”
Leeds Building Society, Barclays, Nationwide, Lloyds Banking Group, Santander, Hodge and Accord Mortgages have all eased their affordability rules to allow more borrowing in recent weeks.
The moves from these firms come after the Financial Conduct Authority said in March that lenders have been “too cautious” in granting FTB home loans under current rules.
Vida has also launched a range of limited edition buy-to-let products at 75% loan-to-value, available on a five-year fixed term.
These products come with fee options of 4% and 7%, with rates starting from 3.90%—designed to offer greater flexibility and value to landlords seeking to optimise their portfolios.
The lender adds that brokers can contact its V-Hub portal for case discussions, where they will have direct access to the firm’s team of experts and underwriters.
