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.
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Buying your first home is a huge milestone, but it can also be a complex process. There are several factors a first-time buyer should consider before making an offer on a property, including understanding the difference between leasehold and freehold and checking council tax bands.
We’ve detailed some questions you can ask your estate agent to help you make an informed decision.
Best UK Mortgage Rates this Week
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Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Signs it's time to remortgage
5 days ago
Remortgaging means switching to a new mortgage deal. This will either be with your current lender or a new one.
Getting advice and moving to a new deal when the time is right can mean lower monthly mortgage payments, better interest rates, or releasing equity from your property.
Here are some signs it may be time to remortgage.
According to Nationwide Building Society’s latest House Price Index, house prices dropped 0.6% month on month in May – the first monthly decline this year.
Most Affordable UK Spots for First-Time Buyers
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Research from Lloyds identifies the most affordable areas in the UK for first-time buyers to be able to get onto the property ladder.
On Wednesday, 13th May, King Charles delivered his speech at the House of Lords, outlining the government’s plans for the upcoming year.
Here is a summary of the housing and energy/environment points.
From 18th May 2026, Halifax (part of Lloyds Banking Group) is launching a ‘£5k Deposit mortgage’ to help first-time buyers get onto the property ladder sooner.
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