Overview

• The Bank of England’s March guidance shift allows lenders to test mortgages against lower projected rates than the standard variable rate plus 1%.
• Major lenders including Santander, Lloyds Bank, Nationwide and Halifax have revised their stress-test rates, unlocking up to £25,900 of extra borrowing for typical first-time buyer couples.
• Savills forecasts that increased lending capacity could push average first-time buyer deposits down from £58,000 to around £45,000 over the next five years.
• Analysts warn that stronger demand may drive UK house prices up by 5–7.5% by 2030, potentially adding as much as £19,425 to the cost of the average home.
• The Financial Conduct Authority is urging continued flexibility in lending assessments and the government has reaffirmed its commitment to supporting homeownership.