June 3rd, 2025
If you’ve been dreaming about buying your first home but felt the mortgage process was too complicated or out of reach, we have good news:
Recent changes to lending rules in the UK could make it easier for first-time buyers to borrow what they need, especially if they’re self-employed or have a less traditional income.
What’s changed?
Until recently, mortgage lenders were required to check if you could still afford your monthly payments if interest rates jumped by 3%. This made it harder for many people to borrow enough – even if they’d already proven they could manage similar payments while renting.
Now, that specific rule has been removed.
This doesn’t mean lenders are suddenly giving out loans without checks. They still need to make sure your mortgage is affordable based on your income, regular expenses, and any financial commitments you have. But without the old “stress test,” some buyers will find it easier to borrow a bit more than they could before.
Why This Matters for You
This change could be a game-changer if you:
- Work for yourself, and your income isn’t the same every month
- Are currently renting, and paying similar (or even more) than what your mortgage would cost
- Tried to remortgage or buy before, but were told you couldn’t afford it – even though you knew you could
Take this example: a couple earning £62,000 a year between them might now be able to borrow up to £25,000 more than before. That could be the difference between a one-bed flat and a two-bed house, or buying in your ideal location instead of settling for second best.
What Could Happen in the Market
While this is good news for many buyers, there are some things to keep in mind:
- If more people can borrow more, house prices might go up
- As prices rise, you might need a bigger deposit to secure the home you want
- If there aren’t enough homes available, finding the right one could still take time
Property experts at Savills have even predicted that these rule changes could help nearly a quarter more first-time buyers get on the property ladder by 2030.
What You Should Think About
Buying your first home is a big step. While these changes could help, it’s still important to be smart about your next move:
- Think about what you can realistically afford, not just what the lender says you can borrow
- Speak to a mortgage adviser who understands your line of work, especially if you’re a contractor or run your own business
- Plan ahead for the future, including the chance that interest rates might rise or your income could fluctuate
Final Thoughts
If you’ve been feeling like homeownership is out of reach – especially because you’re self-employed or don’t have a regular 9 to 5 – this change might give you the boost you were looking for. But like anything in life, it’s important to move forward with a clear plan.
At CMME, we specialise in helping contractors, freelancers, and self-employed professionals like you get the mortgage you deserve. We know how to present your income to lenders in the right way, and we’re up to speed with the latest changes that could boost your borrowing potential.
If you’re not sure where to start, or just want to know what your options are, get in touch: