Homebuyers could be able to borrow up to £35,000 more on a mortgage after Santander became the first major UK lender to loosen lending rules.
The move followed calls by the government and financial regulators for banks to be more flexible.
From Friday, the UK’s fourth-largest mortgage lender will reduce the stress-test rates borrowers are checked against to ensure they would still be able to afford their loans if interest rates were to rise.
Santander said this meant many borrowers would be able to take out loans of between £10,000 and £35,000 more, depending on their earnings.
For example, a couple earning £63,500 with two children looking to buy a £425,000 property would have previously been able to borrow up to about £284,728. Under the
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