The bank has updated its residential affordability calculator to reflect the revised approach.
In buy-to-let, Barclays has introduced a “dynamic” stress rate. Rather than using a single fixed figure, the stress rate will be set as a margin above the customer’s selected product rate, with the intention of aligning the assessment more closely to the pricing of the loan while maintaining a focus on responsible lending.
Barclays said the new BTL calculations could increase borrowing by as much as £20,000 in some scenarios, and has updated its buy-to-let affordability calculator accordingly.
According to the high street lender, the latest measures follow a wider set of changes aimed at improving affordability across its mortgage range, including adjustments to stress rates and maximum loan amounts for higher LTV cases.
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