UK Reeves Plans Mortgage Rule Loosening to Boost First-Time Buyers

British Finance Minister Rachel Reeves is set to announce a comprehensive package of financial reforms, known as the Leeds Reforms, aimed at boosting economic growth and homeownership by easing mortgage lending rules. Key measures include increasing access to high loan-to-income mortgages, potentially enabling up to 36,000 additional first-time homebuyers to secure mortgages annually, and lowering income requirements for first-time buyers, with Nationwide expanding its mortgage support accordingly. The reforms also propose reducing corporate transparency rules and loosening regulatory burdens on financial firms to encourage risk-taking and investment. While Reeves emphasizes that a thriving financial sector is essential for broader economic growth and higher living standards, critics warn that deregulation risks repeating mistakes from the 2008 financial crisis, potentially leading to instability that disproportionately harms working families. The government positions these changes as necessary to make the UK a leading global financial hub and to stimulate investment across sectors despite recent economic challenges, including a contraction in the second quarter of 2025. The Financial Conduct Authority will review lending rules further, including considering tenants' rent payment history as proof of creditworthiness for mortgages.