Accord Mortgages has made changes to its affordability model including stress rate.

As part of the changes, the intermediary-only lender will now be able to lend on average 15% or £37,000 more.

Accord says the changes are in response to updated regulatory guidance which enables lenders to set lower ‘stress rates’.

The new affordability assessment model will apply to all new lending.

Accord Mortgages managing director Jeremy Duncombe says: “Accord already offers market-leading innovation and flexibility to help borrowers overcome today’s affordability challenges, but we’re always looking for new ways of applying the common-sense approach we’re known for.”

“We really welcome the regulator’s latest guidance on aspects like the stress interest rates we have to apply to our mortgage decisions.”

“We’ve been able to review our already-competitive affordability model in light of this, combined with changes in market and economic conditions, which means we can help even more people achieve their homeownership goals.”