Useful for buyers in North and Midlands but not London

The easing of mortgage affordability checks has opened up opportunities for buyers who can now borrow tens of thousands of pounds more, but how valuable that is depends on where they live.

Regional analysis by mortgage broker The Mortgage Genie found that the extra borrowing puts the average home within reach for mid-income buyers across the North, the Midlands, Scotland, Wales and Northern Ireland, but that it barely changes the deposit required for buyers in London and the South East.

The Financial Conduct Authority announced in March 2025 that lenders could apply interest rate stress tests more flexibly, with major lenders since relaxing their affordability calculations. Nationwide, for example, said in May 2025 that the change allowed its average applicant to borrow £28,000 more.

The Mortgage Genie entered identical borrower details into the public affordability calculators of eight major UK lenders and found the most generous now offering 5.5 times salary, while the least generous offered between 4.3 and 4.5 times.

Regional differences

The difference equated to £30,204 for a buyer earning £25,000, £35,000 at an income of £35,000 and £52,500 at £50,000. The broker then set that extra borrowing against average house prices in all twelve UK nations and regions.

In the East and West Midlands, a buyer with a £50,000 income would be £18,500 and £25,500 short of the average home with the least generous lender. With the most generous, the loan covers the full price in both regions.

For a buyer earning £35,000, the deposit needed for an average home falls from £48,500 to £13,500 in Yorkshire and the Humber, from £56,500 to £21,500 in the North West and from £57,500 to £22,500 in Wales. In Scotland and Northern Ireland the same buyer goes from needing £35,500 to needing only a minimum deposit.

In London, where the average home costs £547,000, the deposit needed by a buyer with a £50,000 income falls from £324,500 to £272,000, which is still about half the price. In the South East it falls from £161,500 to £109,000, still more than a quarter of the £384,000 average.

Matt Stevens, managing director at The Mortgage Genie, said: “The extra borrowing is real, but it is not evenly spread. In Yorkshire or the Midlands it can be the difference between renting and buying. In London, another £50,000 still leaves a buyer needing a deposit of more than a quarter of a million pounds.”

The regional picture in full

Deposit needed for an average-priced home in each region, with the least and the most generous lender tested:

• North East: average home £163,000. A buyer earning £25,000 needs £55,704 with the least generous lender and £25,500 with the most generous.
• Yorkshire and the Humber: average home £206,000. A buyer earning £35,000 needs £48,500 with the least generous lender and £13,500 with the most generous.
• North West: average home £214,000. A buyer earning £35,000 needs £56,500 with the least generous lender and £21,500 with the most generous.
• Wales: average home £215,000. A buyer earning £35,000 needs £57,500 with the least generous lender and £22,500 with the most generous.
• Scotland: average home £193,000. A buyer earning £35,000 needs £35,500 with the least generous lender and only a minimum deposit with the most generous.
• Northern Ireland: average home £193,000. A buyer earning £35,000 needs £35,500 with the least generous lender and only a minimum deposit with the most generous.
• East Midlands: average home £241,000. A buyer with a £50,000 income needs £18,500 with the least generous lender and only a minimum deposit with the most generous.
• West Midlands: average home £248,000. A buyer with a £50,000 income needs £25,500 with the least generous lender and only a minimum deposit with the most generous.
• South West: average home £303,000. A buyer with a £50,000 income needs £80,500 with the least generous lender and £28,000 with the most generous.
• East of England: average home £340,000. A buyer with a £50,000 income needs £117,500 with the least generous lender and £65,000 with the most generous.
• South East: average home £384,000. A buyer with a £50,000 income needs £161,500 with the least generous lender and £109,000 with the most generous.
• London: average home £547,000. A buyer with a £50,000 income needs £324,500 with the least generous lender and £272,000 with the most generous.