Barclays cuts its affordability stress rates

May 26, 2025 by Mark

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Barclays has announced that it is reducing the stress rates for those applying for its purchase and remortgage products, as part of a number of alterations to its residential affordability assessments.

The idea behind this move is that it will increase the amounts that some applicants are able to borrow. The lender is stating that this increase could be as much as £30,750 for the average UK family. The revised amount that they would be able to borrow would depend on such issues as their credit scores and their overall financial situations. The reduced stress rates have come into effect immediately.

The decision was revealed by Barclays’ head of mortgages, Lee Chiswell. He spoke about it to Mortgage Introducer, stating that the bank was pleased that borrowers would now be eligible for larger loans.

Chiswell then went on to add that:

“We know there are many challenges facing people right now, whether it’s a first-time buyer trying to pull a deposit together or a family looking to move house.”

He concluded by saying that these changes would help more people in both of those categories to achieve their ambitions, while still ensuring that they were able to meet the necessary mortgage payments.

Stress testing is the method that lenders use to make sure of that. It simulates rises in interest rates to assess whether a borrower will be able to cope with them.

There are no real drawbacks to this news for those with the CeMAP qualification, because it will help borrowers to buy without putting them at financial risk.