Barclays has become the latest lender to ease its affordability stress testing, allowing customers to borrow £30,000 extra to buy a home.  

The high street lender says its affordability rates have been cut for residential purchase and remortgage applications, with households able to borrow up to £30,750.

Barclays’ figure is based on a family with two dependents with a combined income of £120,000 a year, credit card debt of £10,000, other commitments of £600 per month, taking a two- or five-year mortgage with a 35-year term.

Last week, Nationwide relaxed its affordability calculations which it said on average would allow customers to borrow an extra £28,000.

NatWest, Lloyds Banking Group, Santander Hodge and Accord Mortgages have all eased their affordability rules to allow more borrowing in recent weeks.

Barclays head of mortgages Lee Chiswell says: “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.”

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.

Financial Conduct Authority chief executive Nikhil Rathi told the Treasury Committee that under existing regulatory rules lenders have a degree of “flexibility” over the stress tests they apply to homebuyers coming to the market for the first time, which they have not exercised.