Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 24 October 2025 to Question 81775 on , what assessment she has made of the potential impact of recent regulatory changes to mortgages by the FCA on the (a) average deposit required and (b) approval rate for first-time buyer mortgages.

The UK benefits from a competitive mortgage market that offers various low deposit products; prospective buyers are encouraged to shop around and speak to a mortgage broker to find the best possible product for their circumstances.

The government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes changes made this year to support homeowners. FCA clarifications to their affordability testing rules earlier this year are allowing customers to borrow around 10% more on the same income. This could equate to an additional £20k for an average first-time buyer.

Additional flexibility from the Bank of England in relation to their loan-to-income rules are also allowing more customers to access larger mortgages in relation to their incomes. The Bank of England estimates that this change provide capacity for lenders to support up to 36,000 additional first-time buyers in the first year.