Over the past few months, some lenders have adjusted how strictly they apply stress testing. This is partly because:
- Mortgage rates have become more stable compared to the volatility seen previously.
- Lenders are competing more actively for new business.
- Regulatory guidance allows lenders flexibility, as long as responsible lending standards are met.
In practice, this can mean slightly improved borrowing potential for some applicants — particularly those with strong income profiles and low existing commitments.
Who could benefit — and who might not
These changes don’t apply to everyone equally.
- Borrowers with stable incomes, low debt, and good credit histories may see the biggest impact.
- First-time buyers close to affordability limits could benefit with the right lender.
- Applicants with complex income, credit issues, or high outgoings may see little change.
It’s also important to remember that each lender sets its own criteria — one lender easing stress tests doesn’t mean the whole market has followed.
Why advice still matters
Even small changes in affordability calculations can make a meaningful difference to the options available. Choosing the right lender — and structuring the application correctly — can affect:
- How much you can borrow
- Which products you qualify for
- The long-term sustainability of the mortgage
If you’re near the top of your budget or unsure how lender criteria apply to you, it’s worth reviewing your options carefully before committing.