If you’re hoping to buy your first home soon, recent changes to the mortgage affordability assessment conducted by lenders will come as welcome news. The guidance on mortgage stress testing was updated by the Bank of England in early 2025, and as a result you could be eligible to borrow more as a first-time buyer.

In partnership with the experts at the New Homes Mortgage Helpline, we explain the changes to mortgage stress tests and how they could have a positive impact on your first home-buying journey.

What is a mortgage stress test and what are the changes?

As part of your mortgage application process in the UK, lenders conduct affordability assessments that include a stress test, to determine whether you would still be able to afford your mortgage repayments if interest rates were to rise.

The outcome of the stress test will influence how much mortgage lenders are willing to let you borrow. The criteria for a mortgage stress test may vary between individual banks and building societies, however each lender will base their criteria on the most current guidance from the Bank of England.

How has the guidance for mortgage stress tests changed in 2025?

In March 2025, the Bank of England updated their guidance to ease the notional interest rates used for the stress test aspect of mortgage affordability assessments.

Following these changes, many banks and building societies have updated their lending criteria and are now able to offer maximum loan amounts to buyers – meaning that first-time buyers now have higher borrowing power to purchase a home.

Why do the mortgage stress test changes matter to first-time buyers?

For hopeful first-time home buyers, saving for a mortgage deposit isn’t the only barrier to getting onto the property ladder – it can be the gap between what you earn, and what lenders are willing to let you borrow.

The easing on mortgage stress tests by many banks and building societies means that you could borrow more to buy a home, putting more properties within your reach and making it easier for you to own your dream first home.

Following the Bank of England’s updates in March 2025, the New Homes Mortgage Helpline reported that many of the major high street lenders that they work with, such as HSBC, Lloyds Banking Group, Santander and Nationwide, have revised their mortgage stress test criteria to allow buyers to borrow as much as £39,000 more than their previous criteria would allow. This enables many first-time buyers to buy a bigger, or more suitable home, and more potential buyers to enter the market.

Next steps for first-time buyers

If you’re going through the home-buying journey for the first time, it can be difficult to understand the mortgage application process, and how changes such as the mortgage stress test update could impact you.

You might find it useful to work with an independent mortgage advisor who can provide you with qualified expert advice to help you navigate the mortgage market, find the product that is most suitable for your individual circumstances, and support you through the application process.

For first-time buyers who are choosing a new-build home, consider speaking to the New Homes Mortgage Helpline for specialist advice on mortgages for new homes and up-to-date guidance on affordability criteria. Working with over 50 lenders, the New Homes Mortgage Helpline is a trusted partner of Bellway and has helped thousands of buyers to own their dream Bellway home, whether they’re getting onto the property ladder for the first time or taking their next exciting step.

Visit the Bellway website for more information for first-time home buyers, and the unmissable buying schemes and incentives available that could make your energy-efficient new-build home even more affordable, before you search for your nearest Bellway development.

We also have many more articles that can help you to understand various types of mortgages that may be available to you, including our guides to Joint Borrower, Sole Proprietor mortgages; green mortgages; and deposit-free 100% mortgages.