Mortgages Reform: Reeves Unveils Sweeping Finance Changes to Boost Homeownership in UK
In a bold move to reshape Britain’s financial landscape and help more people step onto the property ladder, Chancellor Rachel Reeves today announced the most significant overhaul of financial regulations in a decade.
The reforms – dubbed the Leeds Reforms – aim to turbocharge the UK’s economy while expanding access to mortgages, particularly for first-time buyers.
It’s a massive moment for the housing market. And it starts with mortgages. Old red tape blamed for stifling the competitiveness of Britain’s financial sector is being scrapped. The goal? Make the UK a global hub for finance once again – and make homeownership a reality for more people.
The Chancellor’s vision is clear: unlock investment, create skilled jobs nationwide, and give people a fair chance to own a home. This is not just policy – it’s a signal that the government is serious about backing working families.
“I 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.”
That’s from Reeves herself, as she addressed finance leaders gathered in Leeds. These changes mean more lenders can now offer higher loan-to-income mortgages – up to 4.5 times a buyer’s income – opening the door for as many as 36,000 extra mortgage deals for first-time buyers this year alone.
One of the immediate impacts? Nationwide’s Helping Hand mortgage is expanding. Starting Wednesday, those earning just £30,000 (previously £35,000) – or joint applicants earning £50,000 (down from £55,000) – will be eligible.
This shift will support an extra 10,000 first-time buyers annually. “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.”
That’s not a promise down the line. It’s happening now. The Chancellor also confirmed plans to introduce a permanent mortgage guarantee scheme, a major win for those struggling to save large deposits.
And there’s a significant nod to renters – new regulations could allow rent payment history to count when applying for a mortgage, helping prove affordability.
It’s all part of the government’s Plan for Change – aimed at making the dream of homeownership more than just that: a reality.
Speaking ahead of her Mansion House address later this evening, Reeves laid out her broader vision: “This is the foundation of an economy, and a country, that is more active and more confident… To put it simply: a Britain that is better off.”
And while the reforms are rooted in finance, the ripple effect is designed to be felt everywhere – from city centres to rural towns, from boardrooms to building sites.
Reeves isn’t just looking to modernise – she wants to energise. With global investment expected to flow into a leaner, more competitive financial services sector, the hope is that Britain can reclaim its position as a world leader in finance – while putting real pounds back into people’s pockets.
“Today, I have placed financial services at the heart of the government’s growth mission.” This is UK news. And for thousands of would-be homeowners across Britain, today’s reforms might just be the turning point they’ve been waiting for.
