Could You Borrow More Now Than This Time Last Year?

03 February 2026

If you tried to get on (or move up) the property ladder in Horsham or Southwater in the past, but found your mortgage offer fell short of what you needed, the good news is that things have changed. Over the past year, major UK lenders have gradually relaxed some of their mortgage criteria - particularly around how much they’re willing to lend relative to your income - meaning many local buyers could potentially borrow more now than they could this time last year.

What’s Changing in the Mortgage Market?

Traditionally, UK lenders limited most mortgages to around 4.5 times a borrower’s income. This was a regulatory safeguard introduced after the financial crisis to ensure households weren’t over-extended. But regulatory and lender behaviour has shifted throughout 2025 and into 2026:

The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) updated their guidance in 2025 to allow more flexibility around high loan-to-income (LTI) lending - that’s mortgages greater than 4.5x income.
The FCA clarified how lenders should calculate affordability, allowing them to use product rates instead of higher ‘stress test’ rates. This change alone boosted borrowing capacity for many applicants by thousands of pounds.

These adjustments have encouraged lenders to rethink their lending policies and extend their high-LTI offerings more widely; giving buyers in Horsham, Southwater, and the surrounding villages a chance to move sooner or step further up the property ladder.

Nationwide Leads the Way

Nationwide Building Society has expanded its high loan-to-income options beyond first-time buyers, including home movers and those remortgaging. Highlights include:

Lending up to six times income for some applicants; potentially tens of thousands more than this time last year.
No minimum income requirement for existing Nationwide customers moving home.

For example, a buyer earning £75,000 could now potentially borrow around £450,000 - enough to open doors to more Horsham and Southwater properties that may have previously felt out of reach.

Other Lenders Are Also Responding

Nationwide isn’t alone. In late 2025, a number of other lenders also took steps to soften their lending criteria:

Santander has eased stress test rates and affordability calculations, allowing some borrowers to access up to £35,000 more borrowing.
Lloyds Banking Group increased its first-time buyer support by reducing minimum income thresholds and increasing the multiples available to eligible buyers.
Market commentary signals that several high-street banks have been tweaking criteria, broadening access to higher multiples in a competitive market backdrop.

This represents a meaningful boost in borrowing capacity for many buyers, and shows how lenders are responding to both regulatory shifts and market demand.

What This Means for You

For many buyers, particularly first-time buyers or those who previously missed out on their ideal home, these changes could be significant. Here’s why it’s worth another look:

More borrowing power: Higher loan-to-income options mean you may qualify for a larger mortgage than you would have last year, potentially bringing homes within reach that were previously unaffordable.
Improved affordability calculations: With stress test rules clarified, lenders can reflect realistic payment estimates, which may increase your borrowing capacity without increasing risk.
Wider eligibility: Some lenders are now extending higher multiples beyond first-time buyers to include home movers and remortgagers, broadening the benefit across the market.

But Be Realistic and Seek Advice

While increased lending flexibility is welcome, it’s important to balance borrowing potential with affordability. Higher multiples mean larger debt and monthly payments, so:

Think about long-term sustainability rather than just the maximum you could borrow.
Speak with a regulated mortgage adviser who can assess your personal circumstances and recommend products that match both your needs and future plans.

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In Summary

Mortgage lending in the UK is gradually loosening the reins after a period of tight affordability measures. Thanks to regulatory tweaks and lender initiatives, especially around higher loan-to-income lending, some buyers could indeed borrow more now than this time last year. For those who felt priced out or capped by earlier criteria, it’s definitely worth revisiting your options with a professional adviser.

Our trusted team can provide up-to-date insights on the Horsham and Southwater property market.

You are warmly invited to get in touch to explore your options:

01403 283928
p.davies@aboutmortgages.co.uk

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