Barclays brings in new £30,750 rule with thousands of customers affected

IT HAS REDUCED ITS 'STRESS RATES' - THE HYPOTHETICAL HIGHER RATES WHICH CUSTOMERS' FINANCES ARE SCRUTINISED AGAINST. 13:53, 20 May 2025 Barclays mortgage customers could

borrow £31,000 more after the bank changed lending rules. It has reduced its 'stress rates' - the hypothetical higher rates which customers' finances are scrutinised against.

These have been cut for purchase and remortgage customers, meaning a family with two children would potentially be able to borrow up to £30,750 more, Barclays said. This is based on a two or

five-year fixed mortgage with a 35-year term, and the family having an income of £120,000 per year, credit card debt of £10,000 and other commitments of £600 per month. READ MORE SANTANDER

ISSUES UPDATE TO 14 MILLION 'ACTIVE' CUSTOMERS AFTER MAKING BIG DECISION Lee Chiswell, head of mortgages at Barclays, said in a statement alongside the decision to cut the rates

this week: "We are delighted to increase the amount we can lend to customers looking to buy a home. "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." Last week, Nationwide relaxed its affordability calculations which it said on

average would allow customers to borrow an extra £28,000. Article continues below 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.