Coventry and TSB ease mortgage affordability stress tests potentially offering up to £35,000 more

by Aaron Strutt

Jul 16 2025

TSB for Intermediaries is the latest lender to ease its mortgage stress tests, allowing some customers to borrow up to £30,000 more when buying their home.

The lender states that the move includes first-time buyer applications and reduces the stress rate of interest for all residential applications by up to 2% to 6.75%, or the product rate plus 1% if higher.

It expects this will boost mortgage affordability on a typical joint application by around £30,000, based on a joint income of £75,000 when they have a 10% deposit.

TSB has also increased the loan-to-income multiple on mortgage lending for self-employed customers earning over £75,000. It says self-employed customers earning between £75,000 and £100,000 can now borrow up to five times their income for mortgages when they have a 15% deposit.

Additionally, self-employed customers who earn £100,000 or more can now borrow up to 5.5 times their annual income for mortgages with a loan-to-value ratio of 85% or lower. This is an increase from 4.49 times income.

Coventry changes stress test rules 

Coventry for Intermediaries has also eased its mortgage stress test, allowing typical borrowers to borrow up to £35,000 more.

The changes will reduce stress rates for residential lending, increasing maximum borrowing by 8-15% for many applicants. That means some first-time buyers, home movers and remortgagers could see an increase in their maximum loan amount.

One of the biggest announcements this week came from Lloyds Banking Group, which confirmed that it will make an additional £4 billion of lending available to first-time buyers seeking high loan-to-income multiples.

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The information contained within was correct at the time of publication but is subject to change.

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