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Written question asked by Samantha Niblett (Labour) on Tuesday, 24 March 2026, in the House of Commons. It was due for an answer on Monday, 13 April 2026 (named day). It was answered by Lucy Rigby (Labour) on Monday, 13 April 2026 on behalf of the Treasury.

Mortgages: Students

Question

To ask the Chancellor of the Exchequer, what steps she is taking to assist people with student debt to gain access to a mortgage.

Answer

The Government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes changes made last year to support homeowners. The FCA clarifications to their affordability testing rules have been adopted by 85% of the market and should allow customers to borrow around 10% more on the same income.

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.

The UK also 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.

As a Government, we recognise the impact that previous Government terms can have on graduates’ finances. The government is capping the maximum interest rates on Plan 2 and 3 student loans at 6% from 1 September, for the 2026/27 academic year, delivering stability and protections for graduates from escalating student loan interest. We will continue to keep the terms of the student loan system under review to ensure that it is sustainable and fair for both students and taxpayers.

Secondary information

Type
Written question
Reference
123453
Session
2024-26
Transferred
Yes
Subjects
Debts Mortgages Students
Link
View this Written question on www.parliament.uk