Vida Homeloans has today announced it is refining its residential affordability assessments to help borrowers achieve homeownership.

The bank has reduced specialist buy-to-let and commercial mortgage rates by up to 0.25%.

The lender has improved the potential amount borrowers can lend across its full product range, including shared ownership and interest-only.

The change will allow landlords to potentially borrow more.

However, the more relaxed borrowing drives up house prices, the less impact there will be on transactions.

The changes are designed to offer improved affordability with better leverage for landlords.

Affordability rates have been cut for residential purchase and remortgage applications.

Patrick Bamford, head of international business development at Qualis Credit Risk, says low unemployment, growing incomes and the anticipation of further mortgage rate falls will have...

The reduction allows applicants to borrow on average £28,000 more.

Hodge has reduced its affordability stress rate to support more customers onto the property ladder.