The principal is scheduled to announce “the biggest series of reforms in a decade” that will result in an increase of 36,000 first-time buyers mortgages in the coming year.
Rachel Reeves is expected to say at a widespread business leader summit in Leeds later today that the “Traditional tape festival that prevents the competitiveness of the UK’s financial sector will be swept away”.
She welcomes more mortgages to more than 4.5 times the buyer’s income, which is the Bank of England’s suggestion that large and small lenders will be able to boost their high loans to income home loans.
The Prime Minister will say that this will create up to 36,000 mortgages for first-time home buyers in the first year.
She will announce that starting Wednesday, the nation will be able to “help” high-to-income mortgages for those with lower incomes.
FTBS will be able to apply for a reciprocal mortgage for a salary of £30,000, below £35,000, and co-applicants will have a salary of £50,000, which is less than £55,000 than £55,000.
It said nationwide that this will allow it to pay an additional 10,000 FTB loans per year.
Reeves will also confirm the creation of a permanent mortgage guarantee plan, called freedom of purchase, ensuring that high loans to value mortgages continue to be used “in times of uncertainty”,
She will also point out that the current review of loan rules by the financial conduct authorities “can allow potential buyers to pay rent on time to show that they can afford the repayment of mortgages”.
The reform will be unveiled in Leeds later tonight ahead of a speech at the Prime Minister’s Building.
Reeves hopes to say: “I welcome the latest changes to the recent loan-to-income restrictions of the Financial Policy Committee on mortgage loans, and the prudent regulatory authorities are implemented immediately.”
She will add: “Today, I put financial services at the heart of government growth missions.
“Realizing that Britain will not be able to succeed and achieve its ambitions, without a financial services sector that is striving and thriving.
“What announced today is really a step in the right direction, and the real attempt challenges the outdated structure,” said Nicholas Mendes, mortgage technology manager at John Charcol.
Mendes added that the increase in higher loan loans “will bring special value to those who engage in stable, low-paying roles, which is crucial to society but is often overlooked by traditional lending models.
“People who work in nursing, education, retail and public services usually engage in long-term employment and carefully manage their financial situation, but they are the ones who discover home ownership and they seal off home ownership.”
But he warned: “In most parts of London and the southeast where real estate prices are still significantly more than a step further, even those who are now eligible for mortgages will likely find a difficult property to find.
“The regional gap in housing prices means the benefits of these reforms will not be felt on average across the country, and this remains an important issue.”
The homeowners coalition was not impressed by the government’s freedom of buying plans, calling it a “political posturing.”
“There isn’t too much excitement here. The mortgage guarantee program was originally intended to encourage lenders to offer 95% of mortgages, but lenders no longer need that push.
“Earlier this year, 95% of LTV mortgage transactions reached nearly 400, the highest level in nearly five years.
Higgins added: “Since the program runs entirely behind the scenes between lenders and government, we don’t want first-time home buyers to notice any differences.
“It feels more like a political gesture than a practical solution to the housing crisis.”
But Jeremy Leaf, a real estate agent in north London and former RICS resident president, said the country’s main housing problem is building homes.
Leaf pointed out: “If the government is to reach its target of 1.5 million new homes by the end of the parliament, it must thank the need to address the need to continue to decline in construction at the beginning and provide better support for demand.
“While the government can help create an environment where more activity may occur, including confidence in companies and individuals having more debt, developers cannot be told when, when and how much to build.
