Positive Lending Changes Set to Boost Buyer Confidence and Property Market Activity
At Mannleys Sales & Lettings, we’re always keeping a close eye on the mortgage market so we can offer the best possible advice to our clients — and there’s some great news to share this month.
A raft of recent changes to lending criteria, coupled with falling borrowing costs, is set to give buyers significantly improved access to affordable finance. According to specialist lender Hodge, these developments could unlock nearly 20% more borrowing potential for the average customer — a move that could have a major impact on both home movers and first-time buyers.
The Bank of England’s recent base rate cut to 4.25%, along with relaxed affordability stress testing and the return of competitive mortgage deals, is already stimulating buyer interest. Hodge has joined a growing list of lenders reducing stress rates across its product ranges, directly increasing the amount buyers can borrow.
What does this mean for you?
For joint applicants earning £45,000, the increased borrowing power translates into over £38,000 more — a 17% uplift. For those with a combined income of £75,000, this could mean up to 20% more borrowing capacity. This is especially beneficial for late-life first-time buyers, who after years of saving, may finally be able to make the leap into more spacious family homes — possibly making the difference between a two- and three-bedroom property.
Industry leaders including Halifax and Savills confirm this trend, with the latter noting in its May 2025 Housing Market Update that buyers may now borrow up to 13% more than before.
Even more encouraging is the return of sub-4% mortgage rates for those who qualify for lower loan-to-value products. And for existing homeowners, there’s news that affordability checks may soon be scrapped for remortgaging, making it easier for many to switch to more favourable deals.
These changes arrive at a pivotal moment, following the end of the Stamp Duty holiday and amid wider economic uncertainty. Yet improved access to cheaper finance could help rebalance the market and drive new activity.
At Mannleys, we see this as a real opportunity for both buyers and sellers. With more affordable lending and increased purchasing power, the potential pool of buyers is widening — which is great news if you’re thinking of putting your property on the market.
If you're considering your next move or just want to understand how these changes could benefit you, our team is here to help.
Get in touch with Mannleys Sales & Lettings today — we're here to guide you every step of the way.