Leeds Building Society is changing the way it assesses the affordability of a mortgage, potentially enabling some people to borrow more.

Several lenders have made similar announcements about their stress-testing rules, following clarification from the Financial Conduct Authority (FCA).

Stress tests help to ensure that a mortgage remains affordable for a borrower.

Leeds said its changes from Friday will benefit borrowers buying their first house, moving up the property ladder, or remortgaging their existing home, with some applicants potentially able to borrow thousands of pounds more.

Andy Moody, chief commercial officer at Leeds Building Society, said: “We welcome the recent clarification on lending rules by the FCA which will allow us to support more people on to and up the property ladder and support the Government’s plan for growth.

“Stress-testing requirements have unduly held some borrowers back from achieving their home ownership aspirations, so we are pleased to be able to lend up to £34,000 more to our customers as a result of these changes in affordability assessments.

“We continue to implement prudent affordability checks to allow us to continue lending responsibly.”

The FCA has this week launched a discussion paper on mortgages, kicking off a “public conversation” into the future of the market.

First-time buyers, people borrowing into retirement and those who are self-employed could benefit from possible changes to mortgage rules.

There are around 8.96 million regulated mortgages across the UK and 3.6 million renting households who aim to buy a home in the future, according to the FCA.

Lending rules were toughened following the 2008 financial crisis. The regulator has said this has led to a more resilient market, with fewer borrowers in arrears and more than 99% of mortgages originated since 2014 being on track.

Meanwhile Yorkshire Building Society announced it was reducing rates on its mortgage range.

Its new deals include a two-year fixed-rate for home purchase at 3.92% (previously 4.02%), with a £995 fee.

It is also offering a three-year fixed-rate for remortgage at 4.07% (previously 4.22%), with a £995 fee.

The Yorkshire also has a five-year fixed-rate for home purchase at 4.25% (previously 4.43%) with no fee.