This article was originally published in February 2025 and discussed proposed changes to mortgage rules at that time. Some rules have since changed, while lender eligibility and affordability criteria continue to vary. The examples below provide historical context rather than a statement of current lending requirements or a promise of mortgage approval. For the final rules that took effect on 28 October 2026, see our updated guide to mortgage income multiples and the PRA/FCA high-LTI changes, including worked borrowing examples and affordability considerations.
Who Could This Help?
1. First-Time Buyers:
Many renters who consistently pay their rent on time could have that history considered in affordability tests. This change would recognise that if you can afford your rent, you might also manage mortgage repayments effectively, even if your income alone doesn’t meet traditional affordability criteria.
2. High-Income, Low-Deposit Borrowers:
From 28 October 2026, the PRA and FCA removed the firm-specific 15% cap on new mortgages at or above 4.5 times income, while aiming to keep high loan-to-income lending across the market consistent with a 15% limit. Individual lenders still apply affordability and risk criteria, so this does not guarantee higher borrowing or approval. See the PRA’s October 2026 policy statement.
3. Seeking High Loan-to-Value Mortgages:
If regulators reduce the amount of capital lenders need to hold for 90% loan-to-value (LTV) mortgages, more products could become available for buyers with smaller deposits, increasing affordability for those without significant savings.
How Could This Help Me?
The 2025 proposals explored ways to provide some borrowers with more flexibility. Current availability depends on each lender’s criteria, evidence of income, deposit, credit history and affordability assessment. A record of paying rent or a higher income multiple does not, by itself, establish mortgage eligibility.
Take the Next Step
The potential easing of mortgage rules could make it easier for you to help your children take their first step onto the property ladder. If your family has been feeling limited by current options, this could be the opportunity to explore new possibilities.
Contact TLA Finance to discuss mortgage options and affordability requirements based on your current circumstances. All borrowing is subject to lender assessment and approval.
