First time buyers get helping hand with easier mortgage loans

17 July 2025 Uncategorised

More first-time buyers will be able to apply for a mortgage as the government begins to relax lending rules. The aim is to turn more younger people into owner occupiers by making it easier to borrow. The changes will mean:

• Single people can apply for mortgages with a £30,000 income, instead of £35,000;
• Couples can apply with a joint income of £50,000 instead of £55,000;
• More mortgage loans will be available up to 4.5 times the borrower’s income.

The government estimates this will create around 36,000 more home owners per year. The loans will be underwritten by a government guarantee to banks and building societies if there is an increase in repayment defaults.