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"Halifax's mortgage affordability changes mark a welcome shift in lending appetite"

Journalist: Justin Moy, Contributing Editor

ended 15. April 2025

Halifax is the latest lender to offer improved borrowing on 5-year fixed mortgage products, boosting the potential by up to £38k, supporting borrowers' need to secure larger mortgages based on individual incomes. Meanwhile, BM Solutions has also relaxed its affordability model to lend more based on rental income, on both 2-year and 5-year deals. Brokers welcomed the moves by both lenders, especially at a time of financial instability worldwide, not just in the UK. Views below. 

7 responses from the Newspage community

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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
With 90% and 95% mortgages hitting a 17-year high, it’s clear the market is waking up to the needs of first-time buyers with the latest move from Halifax being a prime example. Lenders are innovating, competition is booming and homeownership is back on the cards for those who thought it was out of reach. We’re entering a new era of mortgage lending and it’s about time.
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Bob Singh
Founder at Chess Mortgages
In a move that will be welcomed by brokers and borrowers alike, Halifax and BM Solutions have followed others in recalibrating their affordability calculators. The FCA gave the green light some time ago for such relaxation of rules and this is now being actioned by many lenders. Lenders are keen to maintain market share and increasing lending may attract more business but responsible lending must remain. Borrowers also need to make sure they are able to afford the higher mortgages and lock in for longer terms. Buyers who missed out on the stamp duty deadline now have many other options including Accord's cashback to help them on the ladder.
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Justin Moy
Managing Director at EHF Mortgages
Having more lenders offer extended affordabilty offers welcome support to first-time buyers and others looking to buy in the current market. Halifax join a number of lenders such as Santander and Nationwide BS who lend extra funds based on stable payments for the next five years, which in turn gives buyers greater choice of properties to purchase, or just enough to get on the property ladder. With rental options diminishing in many parts of the UK, ownership options are so important to those wanting greater control of where they live.
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Sean Horton
Managing Director at Respect Mortgages
Halifax's mortgage affordability changes mark a welcome shift in lending appetite. By cutting stress test rates - particularly on 5-year fixes down to 4.5% or pay rate plus 0.5% - they've opened doors for thousands of buyers. With the reduced stress testing, a typical family earning £75,000 can now potentially access a mortgage £38,000 larger than before. For many, this increased borrowing capacity bridges the gap that previously forced them to compromise on location or property size. This 13% boost in maximum borrowing comes at the perfect time as the market sees a rise in low-deposit options for first-time buyers. With 442 products now available at 95% LTV - the highest number since 2008 - and deals like Barclays' 4.84% five-year fix, these affordability changes could spark fresh momentum in the spring market.
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Michelle Lawson
Director at Lawson Financial
These tweaks are great news not just for aspiring residential homebuyers and owners but also this country's battered landlords. Lending becoming more affordable shows that lenders want to lend and are doing things to make it easier. It's often the little things that count the most.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This is great news for borrowers at a time of increasing economic uncertainty. It's a positive step by Halifax and BM Solutions that understands the strain borrowers are facing at the moment. These changes should help more people access the funds they need to get the home of their dreams. Hopefully, more lenders will follow this trend in the coming weeks.
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Harry Goodliffe
Director at HTG Mortgages
Good to see lenders like Halifax and BM Solutions making moves to improve affordability. Halifax boosting borrowing by up to £38k on 5-year fixes is very positive, and BM Solutions relaxed rental income model is perfect for landlords or those with extra income. With global instability, it’s refreshing to see lenders still willing to help people get onto the property ladder. It’s a step in the right direction for buyers looking to make a move.