Lender’s new stress test offers up to £35,000 boost for homebuyers
Coventry for intermediaries has revised its mortgage stress test, allowing many borrowers to access up to £35,000 more when purchasing a home.
The updated policy lowers stress rates for residential mortgages, resulting in an increase in maximum borrowing of between 8% and 15% for a significant number of applicants. This adjustment could benefit first-time buyers, home movers, and those looking to remortgage, potentially raising their maximum loan amount by as much as £35,000.
Brokers can determine the new maximum loan figures using the affordability calculators available on the lender’s intermediary website.
The change comes as mortgage rates show signs of easing and follows the Financial Conduct Authority’s recent guidance that lenders can exercise flexibility in stress testing. Coventry for intermediaries said the move is also part of its ongoing effort to support homeownership.
“In a market where affordability has become one of the biggest challenges, every bit of extra headroom can make a huge difference. We’ve taken a fresh look at our stress rates and made changes that will give brokers more options to help clients achieve their goals,” said Kevin Purvey (pictured), director of mortgage distribution at Coventry Building Society.
“It's a practical way of responding to what the FCA has signalled – and ultimately it’s about making homeownership a little more accessible. We know brokers are key in helping people navigate this market, and we’re committed to backing them with competitive lending options.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
