Some potential first-time buyer groups ‘could be better served’, regulator says in review

Freelancers and gig economy workers could enjoy more flexibility over how and when they pay their mortgage under plans designed to help more people get on the property ladder.

A shake-up of the rules so people whose income is “variable or irregular” could be freed up from having to make monthly mortgage payments is one of a number of changes being considered by the Financial Conduct Authority (FCA) that could make it easier for millions of “underserved” UK consumers to get a home loan.

People able to buy homes previously beyond budget, aided by rising wages and looser affordability tests

First-time buyers are taking out larger mortgages than ever before as rising wages and looser affordability tests allow them to buy properties that were previously beyond their budget.

The average first-time buyer borrowed £210,800 in the year to September, a record high, according to analysis by Savills, the property agent.