In March 2025, the Bank of England introduced an important change to the way lenders assess mortgage affordability.

For many buyers, this has created an opportunity to borrow more than was possible under the old rules. In some cases, this could be the difference between buying a home that feels like a compromise and securing the one you really want.

That said, while the changes are positive, it’s still important to understand both the opportunities and the risks before making any big decisions.

What’s Changed?

Previously, lenders were required to apply a strict “stress test” to certain mortgages – particularly those with fixed rates shorter than five years. This often reduced how much people could borrow, even when their everyday finances suggested they could manage higher repayments.

That rule has now been removed, giving lenders more flexibility. Many are now using higher income multiples when working out affordability.

It’s worth noting that lenders must still follow the Financial Conduct Authority’s (FCA) rules on responsible lending, so affordability checks are very much still part of the process.

How Much Can You Borrow Now?

Traditionally, most borrowers could expect to borrow around 4.5 times their income. For higher earners or professionals, this could stretch to 5 or 5.5 times.

Today, we’re seeing more lenders move to 5–5.5 times income as standard. In some cases:

• 6 times income – available with selected lenders, often for first-time buyers.
  
• 7 times income – rare, and usually linked to longer-term fixed rates (10 years or more) with strict criteria.
  

There’s also increasing flexibility for self-employed borrowers, such as company directors with just one year’s accounts.

What About Credit History?

Some lenders are prepared to offer up to 6 times income with deposits as low as 5%, even to borrowers with previous credit issues such as missed payments.

That said, outcomes depend heavily on individual circumstances, so it’s always a good idea to review your credit report before applying.

Should You Borrow the Maximum?

Just because you can borrow more doesn’t always mean you should. The key question is whether your repayments will be sustainable in the long term.

Things to consider:

• How secure is your income?
  
• Do you have other financial commitments?
  
• Could you cope if interest rates rose or your circumstances changed?

Extending the mortgage term (up to 40 years in some cases) can make monthly repayments more manageable, but often means paying more interest overall.

What Are the Concerns?

Some experts worry that larger loans could drive up house prices, making things harder for future buyers. Others question whether lending at 6–7 times income is sustainable.

The difference now is that lenders remain subject to strict regulation and must demonstrate responsible lending. Every application is reviewed carefully, and affordability checks remain central to the process.

Final Thoughts

These changes could make a meaningful difference for many buyers – especially first-time buyers who’ve felt constrained by affordability rules in the past.

These changes have allowed us to help people secure the mortgages they need to get on to the property ladder and buy the homes they really want. However, it’s important to exercise caution when maximising mortgage capacity.

The key is to look beyond the maximum you could borrow and focus on what’s realistic, comfortable and right for your long-term plans.

If you’d like to explore how these changes might affect your borrowing options, we’d be happy to talk it through with you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.

Symmonds de Lacey is a trading style of Easy Street Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA No. 1013595).

Registered in England and Wales. Company number 6430453.
Registered address: Basepoint, 377-399 London Road, Camberley, Surrey, GU15 3HL.

Please note, we are not tax advisers. For tax advice, please speak to your accountant or a qualified tax adviser.

Information correct at time of writing – September 2025.