Generation Home (Gen H) has updated its stress test rate to differentiate between its two-, three- and five-year products.

The change will enable homeowners to borrow up to 25% more on a five-year product.

The lender has also introduced two new loan-to-income multiple (LTI) caps.

Applications with a gross income of less than £50,000 and cases with income boosters will be subject to a 4.49x LTI cap.

Intermediaries on Gen H’s panel will see the changes reflected within their application journeys on Gen H Pro.

Gen H chief commercial officer Pete Dockar says: “The volatility that has characterised the interest rate environment over the last year has a lot of customers searching for stability. For many, a longer fixed interest term is just the thing.”