First-time buyers on £30k salary now able to apply for mortgage

First-time buyers earning as little as £30,000 can now apply for a mortgage with Nationwide, following a major shift in lending rules backed by the government and the Bank of England.

The change is part of what chancellor Rachel Reeves called the “biggest set of financial regulation reforms in a decade”—unveiled at a finance summit in Leeds on Tuesday. The goal: jumpstart economic growth and make home ownership more achievable.

Under the new guidance, lenders will be able to offer more mortgages at over 4.5 times a buyer’s income. That’s expected to open up 36,000 additional mortgages to first-time buyers over the next year alone.

Nationwide is among the first to respond. Starting Wednesday, its Helping Hand mortgage will be available to:

• Single applicants earning £30,000 (previously £35,000)
• Joint applicants earning £50,000 (down from £55,000)
  This move could help an extra 10,000 first-time buyers each year.

Nicholas Mendes, a mortgage technical manager at broker John Charcol, called it a practical fix for people who’ve been stuck just outside traditional affordability criteria.

“For someone on £30,000, or a couple on £50,000, this might be the difference between renting and owning. It also recognises the pressures people in lower-paid but essential jobs face—like those in care, education, retail, and public service.”

He added that the shift signals a broader understanding of financial responsibility—beyond just income levels.

The reforms also include:

• A permanent mortgage guarantee scheme to support high loan-to-value borrowing
• A review of FCA lending rules, which could let on-time rent payments count toward mortgage eligibility

Reeves praised the changes from the Financial Policy Committee and regulators, saying:

“With changes like Nationwide’s expanded Helping Hand mortgage, we’ll support thousands more first-time buyers each year.”

Henry Jordan, Nationwide’s director of home, said the lower income thresholds could help more lower earners access homeownership. He also hopes this push will encourage more housebuilding and spur other lenders to follow suit.

The mortgage changes are part of the broader Leeds Reforms—a package aimed at making the UK more competitive as a financial hub. Reeves outlined five key priorities:

1. Reforming financial regulations to unlock growth
2. Giving banks the certainty to compete globally
3. Making the UK a magnet for fintech startups
4. Capitalising on UK strengths in asset management, green finance, and insurance
5. Expanding capital markets to boost investment and job creation

Speaking ahead of her Mansion House speech, Reeves told finance leaders:

“We’re freeing up firms to take risks and grow. We’re giving you the tools—now we need to use them.”

According to the Treasury, these changes are designed to attract global investment and cement the UK’s position as a top destination for financial services over the next decade.