Can I Borrow More in 2026? What New Mortgage Changes Mean for You
If you are planning to buy a home or move in 2026, you may be wondering whether you can borrow more than before. For some borrowers, the answer is yes. However, it will depend on your circumstances and the lender you approach.
Recent shifts in the UK mortgage market mean affordability assessments are starting to ease slightly. This is creating opportunities for some borrowers, but it does not mean higher borrowing is guaranteed.
Lending criteria and affordability calculations vary between lenders and are subject to change.
This article explains what has changed and what it could mean for you.
What’s changing with mortgage affordability?
Over the past few years, lenders have taken a cautious approach, applying higher stress rates to ensure borrowers could still afford repayments if interest rates rose.
As conditions begin to stabilise, some lenders are starting to ease their approach. This includes:
- Reducing affordability stress rates in certain cases
- Refining how household spending and commitments are assessed
- Taking a more flexible view of income such as bonuses and overtime
This does not signal a return to pre-2022 lending, but it does mean some borrowers may now achieve higher borrowing limits.These changes sit within strict regulatory guidelines, with lenders required to follow standards set by the Financial Conduct Authority. At the same time, interest rate expectations, influenced by the Bank of England, continue to play a key role in how much borrowers can access.
In practice, we are already seeing differences in how lenders assess affordability, with some offering noticeably higher borrowing potential than others depending on the applicant’s profile.
Who could benefit from borrowing more?
The impact of these changes will vary, but some groups are more likely to benefit.
You may find your borrowing capacity has improved if you are:
- In stable employment with consistent income
- Self-employed or earning through multiple income streams
- Receiving bonuses, commission, or variable income
- Looking to move home and your income has increased
Even small changes in how lenders assess your situation can lead to a noticeable difference in what you can borrow.
For example, a borrower earning £50,000 may previously have been limited to around £200,000–£220,000, but with some lenders adjusting their affordability models, this could now be higher depending on their overall financial position.
Should you borrow more?
An increase in borrowing capacity can be helpful, especially in a higher-price market. However, it is important to approach this carefully.
Before increasing your budget, consider:
- Whether your monthly payments would remain comfortable
- How you would manage if interest rates increased
- The impact on other financial goals such as saving or investing
The key is not simply how much you can borrow, but what remains sustainable over time.
Why lenders may offer different amounts
Mortgage affordability is not standardised across lenders. Each uses its own criteria, models, and assumptions.
Differences in borrowing amounts often come down to:
- How income is assessed
- How existing financial commitments are treated
- The stress rate applied during affordability checks
This can lead to very different outcomes depending on the lender, which is why exploring multiple options is important.
What should you do next?
If you are planning to buy, move, or remortgage in 2026, it is worth reviewing your borrowing position early.
A clear understanding of your options can help you:
- Set a realistic budget
- Avoid delays during the application process
- Make informed decisions with confidence
Exploring a range of lenders, including those with more flexible criteria, can make a meaningful difference to your outcome.
Final thought
The mortgage market is shifting, and some borrowers may now be able to access higher loan amounts.
However, borrowing more is only beneficial if it remains affordable and aligned with your long-term plans.
At Impact Specialist Finance, we can help you understand your options, explore the lenders most suitable for your circumstances, and ensure any borrowing remains sustainable. Taking the time to get advice now can put you in a far stronger position when you are ready to move forward.
Not sure where you stand?
If you’re unsure how much you could borrow or whether now is the right time to move, we can help you understand your position with no pressure.
- Get a clearer picture of your options
- Understand what lenders are likely to offer
- Plan your next steps with confidence
Speak to our team for an initial conversation.