{"id":2094,"date":"2025-07-15T12:57:08","date_gmt":"2025-07-15T12:57:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/2094\/"},"modified":"2025-07-15T12:57:08","modified_gmt":"2025-07-15T12:57:08","slug":"huge-changes-to-ftb-mortgage-rules-revealed-by-chancellor","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/2094\/","title":{"rendered":"Huge changes to FTB mortgage rules revealed by Chancellor"},"content":{"rendered":"

\"rachael<\/p>\n

Significant changes to financial regulation are to be announced today by the Chancellor during a meeting with top lending organisations today in Leeds.<\/p>\n

Dubbed the \u2018Leeds Reforms\u2019 the changes \u2013 which will be pushed through by key regulators such as the Financial Conduct Authority and Prudential Regulation Authority \u2013 will include the mortgage sector, the rules for which are to be relaxed in a bid to give prospective homeowners a leg up onto the housing ladder including allowing rent payment history to be used when assessing mortgage applicant suitability.<\/p>\n

The Treasury is billing the changes, which cover other financial sectors too, as the largest relaxation of finance rules for a decade.<\/p>\n

More mortgages will be available at over 4.5 times a buyer\u2019s income following Bank of England recommendations that some banks and building societies offer more high loan-to-income mortgages \u2013 creating up to 36,000 additional mortgages for first-time buyers during the first year of the new rules.<\/p>\n

Helping hand<\/p>\n

Leading lender Nationwide is the first to help facilitate the scheme via its \u2018Helping Hand\u2019<\/a> mortgages, which will make it available to people on lower incomes.<\/p>\n

The Treasury says that from tomorrow, eligible first-time buyers can apply for this mortgage with a \u00a330,000 salary, down from \u00a335,000, and joint applicants with a \u00a350,000 combined salary \u2013 down from \u00a355,000. This will support an additional 10,000 first-time buyers each year.<\/p>\n

The more relaxed have been announced alongside the creation of a permanent\/relaunched mortgage guarantee scheme which, the Treasury claims, delivers on a Labour manifesto commitment and ensure high loan-to-value mortgages continue to be available in times of uncertainty.<\/p>\n

Lending losers\"NicholasNicholas Mendes, John Charcol<\/p>\n

Nicholas Mendes of John Charcol says: \u201cFor quite some time now, there has been a growing sense among would-be first-time buyers that the system is not built for them, and it is not because they lack financial responsibility or stability, but rather because lending rules have failed to keep pace with how people actually live, earn and manage their money.<\/p>\n

\u201cWhat has been announced today does feel like a step in the right direction, and a genuine attempt to challenge that outdated structure.<\/p>\n

\u201cEqually, the recognition that a person\u2019s history of paying rent should be considered when assessing their ability to repay a mortgage is something many in the industry have been calling for over many years.\u201d<\/p>\n

\"RobRob Owens, e.surv<\/p>\n

Rob Owens, Head of Research at e.surv, says: \u201cThe return of the Mortgage Guarantee Scheme is a positive signal for buyers struggling with deposits, but it\u2019s unlikely to be a game-changer.<\/p>\n

\u201cWhile it helps reduce risk for lenders and opens the door to higher LTV lending, the previous scheme, launched in April 2021, made up a small share of lending \u2013 less than 2% of completions over its duration.<\/p>\n

\"\"Jeremy Leaf<\/p>\n

Jeremy Leaf, north London agent and former RICS chairman, says: \u201cIn our offices, the ending of the Stamp Duty concession in March clearly showed how much of a deterrent finding those upfront costs are to first purchasers in particular.<\/p>\n

\u201cMore assistance in that regard is essential to significantly improve activity not just in the housing market but job and social mobility generally, bearing in mind its hugely positive impact on wider economic growth.\u201d<\/p>\n

Rent record<\/p>\n

The Chancellor is to also announce a review of Financial Conduct Authority lending rules that could allow a prospective buyers\u2019 record of paying rent on time to show they can afford mortgage repayments.<\/p>\n

Reeves is to say: \u201cI welcome the recent changes the Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA and FCA are implementing immediately.<\/p>\n

\u201cWith an instant impact for consumers, such as Nationwide offering its \u2018Helping Hand\u2019 mortgage to more first time-buyers \u2013 supporting an additional 10,000 each year.\u201d<\/p>\n

\"sherazSheraz Dar, CEO of Creditladder<\/a>, the first and biggest rent reporting company in the UK, says: We very much welcome the announcement from the Chancellor today to help boost homeownership.<\/p>\n

\u201cWhilst it\u2019s always important to ensure affordability is a key component of any mortgage lending decision, for too long it\u2019s been felt that tenants who have a history of on time rent payments-\u00a0 often in excess of what a mortgage might cost them \u2013 have been unfairly penalised.<\/p>\n

\u201cIt is for that reason that CreditLadder is delighted to see a review of FCA lending rules that could allow a prospective buyers\u2019 record of on time rent payments factored into the mortgage decision making process.<\/p>\n

Read more about mortgage affordability changes.<\/a><\/p>\n


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