Chancellor unveils mortgage reforms

The chancellor Rachel Reeves has announced mortgage reform measures to increase home ownership.

As part of wider changes to financial regulations, Reeves has stated that more mortgages will be available at more than 4.5 times a buyer’s income, which the government said would create up to 36,000 additional mortgages for first-time buyers during the first year of the change.

This follows a recommendation from the Bank of England that some banks and building societies offer more high loan-to-income mortgages.

The government also said that under the change, Nationwide would be able to expand its “Helping Hand” mortgage to more people on lower incomes. From tomorrow (July 16), applicable first-time buyers can apply for a mortgage with a £30,000 salary, reduced from £35,000.

Joint applicants will be eligible with a £50,000 combined salary instead of the previous £55,000. These adjustments, according to the government, will aid an additional 10,000 first-time buyers a year.

The government is also making the mortgage guarantee scheme - established by the previous administration – permanent, as stated in February.

The chancellor announced the shake up as part of the “Leeds Reforms”, with Reeves speaking at a summit of finance executives in …