How New Mortgage Rules Could Help First-Time Buyers Get on the Property Ladder

Mortgage rule changes for first-time buyers could make it easier to access home loans, following a major shift in lending guidance backed by the Bank of England and key regulators.

The Bank has recommended that lenders be given more flexibility to offer mortgages above the traditional cap of 4.5 times a buyer’s income. While a strict industry-wide limit still prevents more than 15% of all new mortgages from exceeding that threshold, individual banks and building societies are now allowed to issue a greater proportion of these higher loan-to-income mortgages from within their own lending books—giving them more freedom to support first-time buyers.

Lenders Begin to Respond

One of the first major lenders to act on the recommendation has eased the income criteria on its ‘Helping Hand’ mortgage product. Single applicants can now qualify with a salary of £30,000, down from £35,000, while joint applicants can apply with a combined income of £50,000, instead of £55,000. The move is expected to help an extra 10,000 people a year onto the housing ladder.

The change allows eligible borrowers to access loans of up to six times their income – up to 33% more than standard lending – offering a vital boost to people struggling to buy due to rising rents and living costs. The scheme has already helped tens of thousands of first-time buyers since its launch in 2021.

A Step Towards Supporting Homeownership

The Bank of England estimates that up to 36,000 additional high loan-to-income mortgages could now be issued each year. The reforms come at a time when millions of existing homeowners are facing higher monthly payments as fixed-rate deals expire, although falling interest rates are starting to ease pressure on some households.

Overall, the regulatory changes signal a shift towards supporting homeownership in the UK – particularly for younger buyers – by allowing more flexibility in mortgage approvals without removing financial safeguards.

While not without risk, the move is widely seen as a cautious but meaningful step towards tackling the growing difficulties faced by first-time buyers – especially in light of recent mortgage rule changes for first-time buyers.

How We Can Help

At Machins, we understand that buying or selling your home can be stressful. For many, it may well be the most important transaction of their lives.

It doesn’t matter if you are a first-time buyer, a first-time seller or a seasoned property investor, we have a large, experienced and friendly residential conveyancing team who will be with you every step of the way.

With our knowledge of the legal process, we aim to ensure that matters proceed in as stress-free a manner as possible. Although we have extensive local knowledge in Hertfordshire, Bedfordshire and Buckinghamshire, we can assist with properties anywhere in England and Wales.

Contact us if you would like advice about the legal aspects of buying or selling a home.