First-Time Buyers Encouraged as Government Extends Mortgage Support

In a move to support aspiring homeowners, the Treasury has confirmed this month that the Mortgage Guarantee Scheme will be made permanent. The announcement coincides with Chancellor Rachel Reeves’ Mansion House speech and reinforces the Government’s support for first-time buyers.

New measures have been introduced to help more people secure a mortgage, with the Bank of England’s latest guidance prompting lenders to offer more products at over 4.5 times a buyer’s income. This change is expected to result in up to 36,000 additional mortgages in the first year alone.

Nationwide has responded by expanding access to its popular ‘Helping Hand’ mortgage. From today, individuals earning £30,000 (previously £35,000) or joint applicants earning £50,000 (down from £55,000) will qualify, supporting an estimated 10,000 extra first-time buyers annually.

Making the Mortgage Guarantee Scheme permanent fulfils a manifesto pledge and ensures that high loan-to-value mortgages remain available during periods of uncertainty. The Financial Conduct Authority is also reviewing current lending rules, including proposals to incorporate tenants’ rent payment history into mortgage affordability assessments.

Rachel Reeves stated: “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.”