Fresh Backing for First-Time Buyers as Government Makes Mortgage Scheme Permanent

Trusted since 1983, we’ve seen how crucial Government support is for helping first-time buyers get onto the ladder—and this month brings some welcome news.

The Treasury has confirmed that the Mortgage Guarantee Scheme will now be permanent, as Chancellor Rachel Reeves sets out new steps to support those buying their first home. These changes come alongside her Mansion House speech and form part of a wider plan to “regulate for growth.”

One of the most immediate impacts is the easing of lending rules. Thanks to new guidance from the Bank of England, more mortgages will now be available at over 4.5 times a buyer’s income, unlocking up to 36,000 additional approvals in the first year.

Nationwide is acting quickly, extending its popular ‘Helping Hand’ mortgage. From today, individuals earning £30,000 (previously £35,000) and joint applicants with £50,000 income (previously £55,000) will qualify—supporting 10,000 more buyers each year.

The decision to make the mortgage guarantee scheme permanent is also a big win. It ensures high loan-to-value products remain accessible, even in uncertain market conditions, giving buyers confidence and peace of mind.

A further review by the Financial Conduct Authority is also underway, which may allow tenants’ rent payments to count towards mortgage affordability checks in the future.

Rachel Reeves said: “I welcome the recent changes the Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the Prudential Regulation Authority and FCA are implementing immediately.

With an instant impact for consumers, such as Nationwide offering its ‘Helping Hand’ mortgage to more first-time buyers, supporting an additional 10,000 each year.”

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