- Red tape swept away in biggest financial regulation reforms
in a decade to boost homeownership and put more money into
people's pockets through the Government's Plan for
Change.
- Nationwide set to widen access to its ‘Helping Hand' mortgage
from Wednesday, supporting 10,000 extra first-time buyers thanks
to Chancellor's Leeds Reforms.
- Reeves: Benefits of a thriving finance sector will be felt
all over Britain
The Chancellor is expected to announce the biggest set of reforms
to financial regulation in a decade at a summit of top finance
executives in Leeds tomorrow, as part of the Government's mission
to kick start economic growth and support more first-time
buyers.
Red tape holding back the competitiveness of the UK financial
sector will be swept away under the Leeds Reforms, addressing
long-standing industry complaints.
The changes will see Britain become the top destination for
finance firms over the next decade, attracting inward investment
from across the globe to create good, skilled jobs around the
country.
Prospective homeowners will be given a leg up onto the housing
ladder under the plans, with regulators acting on the
Chancellor's push to regulate for growth.
More mortgages will be available at over 4.5 times a buyer's
income following Bank of England recommendations that some banks
and building societies offer more high loan-to-income mortgages –
creating up to 36,000 additional mortgages for first-time buyers
over the first year.
This change means that Nationwide will be able to make its
popular ‘Helping Hand' mortgage available to people with lower
incomes. From Wednesday, eligible first-time buyers can apply for
the mortgage with a £30,000 salary, down from £35,000, and joint
applicants with a £50,000 combined salary – down from £55,000.
This will support an additional 10,000 first-time buyers each
year.
This comes alongside the creation of a permanent mortgage
guarantee scheme, delivering on a Manifesto commitment and
ensuring high loan-to-value mortgages continue to be available in
times of uncertainty, as well as a review of Financial Conduct
Authority lending rules that could allow a prospective buyers'
record of paying rent on time to show they can afford mortgage
repayments.
The reforms will be unveiled in Leeds ahead of the Chancellor's
Mansion House speech on Tuesday evening.
Speaking in the City of London, Chancellor of the
Exchequer is expected to
say:
“This is the foundation of an economy, and a country, that is
more active and more confident.
“Where people and businesses look to the future and talk about
hope about opportunity.
“Assured of their own capability, and of the ability of our
country to boldly face the challenges that lie ahead.
“And certain of the prize if they succeed.
“Of higher wages and higher living standards.
“The renewal of Britain in every home and every high
street.
“To put it simply: a Britain that is better off.
She will add on homeownership:
"I welcome the recent changes the Financial Policy Committee has
announced to the loan-to-income limit on mortgage lending,
which the PRA 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.
She will conclude:
“Today, I have placed financial services at the heart of the
government's growth mission.
“Recognising that Britain cannot succeed and meet its growth
ambitions without a financial services sector that is fighting
fit and thriving.
…
“And I have been clear on the benefits that that will
drive.
“With a ripple effect that will drive investment in all sectors
of our economy and put pounds in the pockets of working
people.”
