West Brom lowers mortgage stress rates by up to 1.15%
The change means an average borrower could access up to £28,000 more.
West Brom Building Society is making changes to how it assesses mortgage affordability.
The Society will reduce its affordability stress rate by up to 1.15%. These changes mean an average customer could access up to £28,000 more toward the cost of their home, representing a 13% increase for lending above 85% LTV.
This change is designed to support all types of borrowers, especially first-time buyers. For example, a first time buyer earning £50,000 with a 10% deposit could see their borrowing increase by around £21,500, while a home mover earning £75,000 with a 10% deposit could access up to £40,000 more toward their next home.
Alasdair McDonald, head of intermediaries at West Brom Building Society, commented: “Supporting people into homes of their own is at the heart of what we do in the mutual sector. By updating our affordability approach, we’re helping more customers access the borrowing they need in a responsible and sustainable way.”
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Iress
Iress expands mortgage and protection distribution through new Access FS platform
FCA
Advice firm employees plead guilty after defrauding clients of £2m
Inflation
Inflation rises to 3.5% as mortgage rates outlook shifts
Atom Bank
Try Mortgage Network adds Atom Bank to residential mortgage panel
This week's biggest stories:
Iress
Iress expands mortgage and protection distribution through new Access FS platform
FCA
Advice firm employees plead guilty after defrauding clients of £2m
Inflation
Inflation rises to 3.5% as mortgage rates outlook shifts
Atom Bank
Try Mortgage Network adds Atom Bank to residential mortgage panel
FCA
MPs call for investigation into FCA's treatment of whistleblowers
Mortgage Rates
Average five-year fixed rate mortgage hits 6%