HM Treasury published an outline of the government’s “Leeds Reforms”, described as the biggest set of UK financial regulation reforms in a decade, with measures intended to reduce regulatory burdens and increase access to mortgages for first-time buyers. The package highlights recent Bank of England Financial Policy Committee changes to the loan-to-income limit on mortgage lending, which the Prudential Regulation Authority and Financial Conduct Authority are implementing immediately. HM Treasury estimates the change will allow some banks and building societies to offer more mortgages at above 4.5 times income, creating up to 36,000 additional first-time buyer mortgages over the first year. Nationwide is set to widen access to its “Helping Hand” mortgage from 16 July by lowering the minimum salary for single applicants to GBP 30,000 from GBP 35,000 and the combined salary for joint applicants to GBP 50,000 from GBP 55,000, which it expects will support an additional 10,000 first-time buyers each year. The reforms also include plans to create a permanent mortgage guarantee scheme and to review Financial Conduct Authority lending rules, including whether on-time rent payments could be used to evidence affordability. The announcement was framed as being unveiled at a Leeds summit of senior finance executives ahead of the Chancellor’s Mansion House speech.
HM Treasury 2025-07-15
United Kingdom's HM Treasury outlines Leeds Reforms enabling more mortgages above 4.5 times income and a permanent mortgage guarantee scheme
HM Treasury unveiled the "Leeds Reforms," the most significant UK financial regulation changes in a decade, aimed at reducing regulatory burdens and increasing mortgage access for first-time buyers. Key measures include adjustments to the loan-to-income limit on mortgage lending, expected to create up to 36,000 additional first-time buyer mortgages in the first year. Nationwide will lower salary requirements for its "Helping Hand" mortgage, potentially supporting 10,000 more first-time buyers annually.