First-Time Buyers to Benefit from Permanent Mortgage Scheme and Lending Reforms

This month, the Treasury confirmed that the Mortgage Guarantee Scheme will become permanent, marking a significant moment for first-time buyers across South West London and beyond. The announcement came ahead of Chancellor Rachel Reeves’ Mansion House address and is part of the Government’s commitment to supporting home ownership through economic growth.

In line with guidance from the Bank of England, lenders are now expected to offer more mortgages at over 4.5 times a buyer’s income. This change could result in up to 36,000 additional mortgage approvals for first-time buyers within the next year.

Nationwide is one of the first lenders to respond, expanding access to its ‘Helping Hand’ mortgage. From today, individual applicants earning £30,000 (down from £35,000) and joint applicants with £50,000 income (previously £55,000) can apply—helping an additional 10,000 first-time buyers annually.

The decision to make the Mortgage Guarantee Scheme permanent delivers on a key manifesto promise and ensures continued access to high loan-to-value mortgages, even in periods of market uncertainty. Meanwhile, the Financial Conduct Authority is reviewing lending rules, with potential reforms allowing tenants’ rent payment history to support affordability assessments.

Rachel Reeves commented: “I welcome the recent changes the Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the Prudential Regulation Authority and FCA are implementing immediately.

With an instant impact for consumers, such as Nationwide offering its ‘Helping Hand’ mortgage to more first-time buyers, supporting an additional 10,000 each year.”