US EditionReeves pledges mortgage shake-up despite risk of surge in repossessions
UNITED KINGDOM, JUL 15 – The reforms include a permanent mortgage guarantee and allow borrowing up to six times income, expected to create 36,000 new mortgages for first-time buyers in the first year.
- From Wednesday, Nationwide Building Society will extend its Helping Hand mortgage scheme, lowering individual income requirements to £30,000 and trimming joint applicant threshold to £50,000.
- Last week, regulators removed the 15% limit on high loan-to-income mortgages, while the government launched a permanent mortgage guarantee scheme and the FCA reviews rent payment records for affordability.
- Data from the Bank of England show up to 36,000 additional first-time buyer mortgages are projected, with borrowers able to borrow up to six times their income.
- HomeOwners Alliance chief executive Paula Higgins called it a 'political gesture', while FCA chief Nikhil Rathi warned 'things are going to go wrong' and estate agent Jeremy Leaf pointed to a lack of new homes as the core issue.
- First-Time buyers may benefit over the coming year, with up to 36,000 additional mortgages supported by reforms and renters able to use timely payment history instead of deposits.
26 Articles
26 Articles
Mortgage reform: is Rachel Reeves betting the house on City rules shake-up?
Chancellor Rachel Reeves is to announce the biggest mortgage shake-up in a decade as part of financial regulation reforms aimed at boosting growth and supporting more first-time buyers.In her Mansion House speech, Reeves will make permanent an insurance scheme that encourages lenders to offer potentially riskier, high loan-to-value mortgages, implementing a key pledge in last year's election campaign.According to the Bank of England, the reforms…
UK Treasury chief will slash financial services red tape to boost investment
U.K. Treasury chief Rachel Reeves said Tuesday that she’ll cut red tape for banks and finance firms so that “informed risk-taking” can help kickstart Britain’s sluggish economy.The government is trying to regain the economic initiative after rocky weeks of costly U-turns and figures showing the British economy contracted for two months running.Reeves announced plans to pare back some of the regulations introduced after the 2008 global financial …
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