US EditionBoost for First-Time Buyers as ‘Mortgage Lending Reins Loosened’
GREATER LONDON, ENGLAND, JUL 9 – The Bank of England permits lenders to exceed 15% individual high loan-to-income mortgage limits, potentially helping 10,000 more first-time buyers annually, while maintaining a 15% aggregate cap.
- The Prudential Regulation Authority relaxed the 15% cap on new high loan-to-income mortgages, allowing lenders more flexibility from 2025 onward in the UK housing market.
- This change follows a Financial Policy Committee recommendation to permit some lenders to exceed the 15% LTI cap without raising overall system risk while keeping the aggregate limit at 15%.
- Nationwide, the UK’s largest building society, welcomed the announcement and anticipates that schemes like Helping Hand, introduced in 2021, will allow it to support approximately 10,000 additional first-time homebuyers each year.
- The share of mortgages with LTI ratios over 4.5 rose to 9.7% in early 2025, while the Bank of England noted unused capacity equivalent to 36,000 high-LTI first-time buyer mortgages per year.
- The adjustment aims to improve first-time buyer access without increasing financial risks, supporting economic growth and housebuilding ambitions while the PRA plans to consult on permanent rule changes.
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The VVD party proposes allowing first-time buyers to save tax-free for their first home purchase. Participants in the proposal are divided on this plan. Just over half consider this a good way for young people to secure a home.
·Amsterdam, Netherlands
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Evening Standard+7 Reposted by 7 other sources
Boost for first-time buyers as ‘mortgage lending reins loosened’
One mortgage expert said the Bank of England had made a ‘welcome and pragmatic move’.
·London, United Kingdom
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The UK Prudential Regulatory Authority (PRA) is going to review the requirements in the granting of mortgages considered to be risky, which means...
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Leaning Left3Leaning Right2Center4Last UpdatedBias Distribution44% Center
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- 44% of the sources are Center
44% Center
L 33%
C 44%
R 22%
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