Leeds Building Society has become the latest lender to ease its affordability stress testing, allowing customers to borrow up to £34,000 extra to buy a home.     

The mutual will amend its borrower affordability assessments, which will reduce stress testing rates by up to 1.24% from tomorrow. 

The move will apply to first-time buyers, home movers and remortgagers, with typical applicants able to borrow between £9,000 and £34,000 more. 

Barclays, Nationwide, NatWest, 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.

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. 

Leeds Building Society chief commercial officer Andy Moody says: “We welcome the recent clarification on lending rules by the Financial Conduct Authority which will allow us to support more people onto and up the property ladder and support the government’s plan for growth.”