16 Jul 2025
Big Changes for First-Time Buyers: What the Chancellor's Mortgage Reforms Mean for You
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Borrow More with Less Income
Previously, lenders capped mortgages at around 4.5 times your salary. Now, more borrowers will be allowed to go beyond that limit as lenders can apply to discard this cap. This reform could unlock up to 36,000 additional mortgages for first-time buyers this year.
Support for Lower-Income Buyers
Nationwide’s “Helping Hand” mortgage—allowing borrowing up to six times income—is now available for those earning £30,000 (formally £35,000). For joint applicants, the combined income threshold dropped to £50,000. This change could help 10,000 more buyers annually.
Mortgage Guarantee Scheme Goes Permanent
The government’s Mortgage Guarantee Scheme (which supports lenders when offering mortgages with a 5% deposit) is now here to stay. It gives lenders more confidence, making it easier to get high loan-to-value mortgages.
Rent Payments Count Too
For the first time, rental history may be considered in mortgage decisions. If you've consistently paid rent on time, it could strengthen your case for affordability, even if your salary isn’t high.
These updates are designed to make buying a home more achievable, especially for those facing income or deposit hurdles. A bold move to give more people a fair chance at stepping onto the property ladder.
Recent posts
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
20 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
22 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
25 Jul 2025
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
More information
Trusted by
