The new Economic Secretary and Housing Minister will host senior representatives from major banks at the Treasury today (10th September), as the Government steps up efforts to increase homeownership and expand affordable housing under its Plan for Change.
Lucy Rigby and Matthew Pennycook will urge lenders to make first-time buyers their top priority, following the Leeds Reforms announced by the Chancellor in July.
The reforms allow lenders to offer more mortgages at over 4.5 times buyers’ income and are expected to help up to 36,000 additional first-time buyers secure a home within the first year.
The Financial Conduct Authority (FCA) is also simplifying mortgage rules, including affordability checks, to make borrowing more accessible within regulated limits.
The round-table builds on a meeting last week with building societies, which showcased new products such as no and low deposit mortgages for customers with strong credit ratings.
The Building Societies Association outlined plans for a campaign to raise awareness of these initiatives.
Lucy Rigby, Economic Secretary to the Treasury, said: “Helping first-time buyers onto the housing ladder is central to our Plan for Change.
“That’s why I’m bringing lenders together to make mortgages more accessible and highlight new options for first-time buyers so more people can finally own their own home.”
Robin Fieth, chief executive of the Building Societies Association, said: “We welcome the government’s efforts to support first-time buyers and are pleased to see engagement with building societies and other lenders on how to better support people who can demonstrate affordability but have been excluded by outdated regulations.
“Building societies have always led the way in developing innovative solutions to help people into homeownership, and we are ready to do more.”
Mike Regnier, chief executive of Santander UK, said: “We welcome the opportunity to engage with the Economic Secretary and the Housing Minister on the future of home ownership, building on the work that has already been done to enable lenders to support more homeowners and first-time-buyers realise their homebuying aspirations.”
The first roundtable on 3rd September brought together the Building Societies Association and senior representatives from Skipton, Yorkshire, Cambridge, Leeds, Bath and Coventry Building Societies.
Today’s session will include Barclays, HSBC, Lloyds, Nationwide, NatWest, Santander and UK Finance.
