Related topic: Affordability

The change means an average borrower could access up to £28,000 more.

Trudy Woolf, director of lender services at e.surv, says for many new-build households, removing an annual private charge materially changes affordability.

Continued improvement in affordability helped drive first-time buyer activity in 2025.

The extended loan term could enable borrowers to access lower monthly payments and increase their borrowing capacity.

The first-time buyer share of house purchase activity was above the long run average, supported by easier credit availability.

22% of first-time buyers purchased homes with deposits under £20,000 in December, up 8 percentage points year-on-year.

The new stress rates will allow eligible customers to borrow up to an additional £33,000.

Stress tests have also been lowered across Metro Bank’s two-year fixed rate products.

Three-quarters of lenders expect affordability to become a more pressing issue over the next year.

The change will allow eligible customers to borrow up to an additional £33,000.