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New Mortgage Scheme Launches Amid Affordability Concerns

7/10/2025

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Summary

Reeves Launches Mortgage Scheme

Chancellor Rachel Reeves is set to launch a permanent "Freedom to Buy" mortgage guarantee scheme, aimed at providing first-time buyers with reliable access to mortgages. This comes after a temporary program successfully supported over 53,000 completions. However, the Bank of England cautions that many homeowners may struggle with increasing repayments as refinancing delays loom, raising concerns about affordability.

Summary

Rates Drop, Buyers Struggle

Average mortgage rates in the UK have plummeted to their lowest in nearly three years, with two- and five-year fixed rates now at 5.09% and 5.08%. With nearly 7,000 mortgage options available, affordability is improving thanks to relaxed stress tests. However, first-time buyers still face challenges as the government prepares to overhaul the Mortgage Guarantee Scheme.

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Reeves Launches Mortgage Scheme

Chancellor Rachel Reeves is set to launch a permanent "Freedom to Buy" mortgage guarantee scheme, aimed at providing first-time buyers with reliable access to mortgages. This comes after a temporary program successfully supported over 53,000 completions. However, the Bank of England cautions that many homeowners may struggle with increasing repayments as refinancing delays loom, raising concerns about affordability.

1 / 2