Enhanced affordability assessment to put homeownership within reach of more people
- We’ve made improvements in the way we assess how much borrowers can afford to repay in an effort to increase home ownership.
- The Society will reduce affordability stress testing rates by up to 1.24%1 to lend up to £34,000 more (based on a high earner with two children2).
- The changes will benefit borrowers taking owner-occupier mortgages3, especially first time buyers and those looking to remortgage with us.
- We’ve also made improvements to our broker affordability calculators.
We’re making changes to the way we assess a borrower’s affordability by reducing stress testing rates by up to 1.24%4, following clarification from the Financial Conduct Authority (FCA) about stress testing rules. This move supports our purpose of putting homeownership within reach of more people, generation after generation.
Boosting affordability
The changes, effective Friday 27 June, will benefit borrowers buying their first house, moving up the property ladder, or remortgaging their existing home. Applicants could be able to borrow between £9,000 and £34,0005 more, following these changes.
This is the latest action from us to support borrowers, following the launch of our Income Plus mortgage range which allows first time buyers with a minimum household income of £40,000 to borrow up to 5.5 times their earnings.
As a mutual with 150 years’ heritage, the Society will continue to lend in a responsible way, using a range of criteria and underwriting checks while supporting more people to fulfil their home ownership goals.
Typical borrower scenarios6:
| Income | Previous max loan7 | New max loan8 | Variance | |
|---|---|---|---|---|
| Single first-time buyer | £38,000 | £175,000 | £184,000 | £9,000 |
| Family of three buying their first home | £80,000 (joint) | £343,000 | £359,000 | £16,000 |
| Single applicant stepping up the ladder | £44,000 | £175,000 | £195,000 | £20,000 |
| Family of three moving up the ladder | £76,000 (joint) | £331,000 | £341,000 | £10,000 |
| Single applicant with two children - remortgaging | £75,000 | £300,000 | £334,000 | £34,000 |
Andy Moody, Chief Commercial Officer at Leeds Building Society, said:
“We welcome the recent clarification on lending rules by the FCA which will allow us to support more people onto and up the property ladder and support the government’s plan for growth.
“Stress testing requirements have unduly held some borrowers back from achieving their home ownership aspirations, so we are pleased to be able to lend up to £34,000 more as a result of these changes in affordability assessments.
“We continue to implement prudent affordability checks to allow us to continue lending responsibly, as we have done for the past 150 years.”
Improved affordability calculators
We’ve also made some changes to our affordability calculators, including making it clearer which calculator to use for first time buyer applications.
1In comparison to rates on 29 May 2025.
2Based on a single applicant earning £75,000 with two children, remortgaging on a 2-year fixed 25-year term with Leeds, compared to 29 May 2025. Figures rounded to the nearest thousand.
3Excluding the Society’s Income Plus mortgage range aimed at first-time buyers, and direct-to-consumer mortgages.
4In comparison to rates on 29 May 2025.
5Based on typical mortgage scenarios outlined in the table above, and factoring in the loan-to-income caps in place for responsible lending. Figures rounded to the nearest thousand.
6Based on typical applications to the Society since December 2024. These examples are illustrations only and mortgage affordability is assessed on an individual basis.
7Based on stress rates in place on 29 May 2025. Figures rounded to the nearest thousand.
8Based on new stress rates live from 27 June 2025. Figures rounded to the nearest thousand.