Lending Rules Relaxed for First-Time Buyers: Borrow Up to 7x Income

Recent changes in mortgage lending allow first-time buyers to borrow up to seven times their annual income. This comes as the average house price approaches £300,000, putting homeownership within reach for more individuals. Previously, lenders could only offer 15% of new mortgages at more than 4.5 times loan-to-income. While these relaxed criteria may benefit buyers, they also come with risks, as stricter requirements may resurface if economic conditions worsen.