Major mortgage change to help first-time buyers get on housing ladder

First time buyers will get more help to get on the housing ladder under plans to cut red tape to boost home ownership.

More mortgages will be available at over 4.5 times a buyer’s income after the Bank of England recommended some lenders offer more high loan-to-income mortgages.

The move is expected to create up to 36,000 additional mortgages for first-time buyers over the first year.

Nationwide, Britain's largest building society, said last week that it is aiming to increase its high loan-to-income lending limit, handing mortgages to people on lower incomes.

From Wednesday, eligible first time buyers will be able to apply for its "Helping Hand" mortgage with a £30,000 salary, down from £35,000.

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Joint applicants will be able to apply with a £50,000 combined salary – down from £55,000.

It is estimated this will support an additional 10,000 first-time buyers each year.

Ms Reeves told the Mirror: "This Government has committed to build 1.5million homes in this Parliament but it also matters who can buy those homes.

"The changes that I'm announcing mean that more first time buyers are going to be able to get on the housing ladder, and to be able to achieve their dream of home ownership and the security that means for them and their families."

Ms Reeves is expected to unveil the reforms at a summit in Leeds on Tuesday ahead of her Mansion House speech, the Chancellor's annual address to bankers and company bosses.

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