From first-time buyer schemes and borrowing limits to equity release and protection, Malcolm Davidson asks whether greater access is being matched by better understanding
October brought plenty of announcements about helping people onto the property ladder. There was also news about borrowing limits, older homeowners and protection. For me, the common question is whether greater access is truly being matched by better understanding. Opening a door is a good start, but customers need to know what awaits them on the other side.
The First Time Buyer ISA: welcome, but not yet
The new First Time Buyer ISA is welcome in principle. Removing the upper age restriction recognises that buying a first home is not something everyone manages anymore in their twenties or thirties. However, we must wait until April 2029! The government says providers need time to develop the product, but that will feel a long way off for people struggling to save a deposit today. In the meantime, we should help buyers understand the options already available rather than let a future announcement put their plans on hold.
Your First Home: lessons from Help to Buy
Your First Home is more immediate, with applications due to open in February and the first loans expected from April 2027. I am pleased to see support being targeted through household income limits and local property price caps. Public money should reach people whose route into homeownership really depends on it.
There is evidence behind my concern here. A government evaluation of Help to Buy found that 54% of surveyed customers could have bought without the scheme. That does not mean they could necessarily have bought the same home, or that the scheme delivered no wider benefit but it strengthens the case for thinking carefully about who really needs support.
There is another lesson from Help to Buy that I hope we take seriously. When helping some customers remortgage, we found they did not always seem to appreciate what they had signed up to. An equity loan can make the initial purchase achievable, but the customer also needs to understand future interest charges, how repayment works and what happens if their property's value changes. I would like clearer information and stronger checks on understanding this time around. Getting the keys should not be the point at which those questions stop. A customer who can explain the commitment back to us is in a stronger position than one who has simply confirmed they have read the information provided.
Higher borrowing limits: freedom with responsibility
October also brought greater flexibility on higher loan-to-income lending. The individual lender cap on mortgages at or above 4.5 times income has been removed, while the market-wide 15% constraint remains. This gives lenders more freedom to decide where they want to compete.
That could be useful for buyers who can demonstrate sustainable affordability but have struggled with borrowing limits. Deposit support and income multiples tackle different obstacles, so both deserve attention. However as we know, the largest mortgage available is not automatically the right recommendation. We still need to understand the customer's spending, priorities and ability to cope if circumstances change.
Later life: options before assumptions
For older borrowers, the latest Equity Release Council figures showed £591 million lent in the third quarter, slightly down on the previous quarter, while new customer numbers edged higher. Alongside those figures came renewed industry calls for mandatory later-life lending conversations with customers aged 55 and over.
I support the ambition to make customers aware of their options. That should mean a balanced discussion, with mainstream Advisors collaborating with specialist colleagues where appropriate. Standard mortgages, retirement interest-only mortgages, lifetime mortgages and downsizing can all produce very different outcomes. Age should prompt us to ask relevant questions about retirement, income and future plans but it should not decide the product before the conversation begins.
Protection: revisiting the conversation
Protection provided another reminder that an unfinished conversation may deserve a second look. Early findings from AMI's 2026 Protection Viewpoint research suggested most consumers who explored cover but did not buy said something could have changed their decision. Cost, understanding and timing were among the barriers.
That is useful evidence for Advisors who hear "not now". We should find out what sits behind the answer and agree whether a later review would help. Sometimes the customer needs a clearer explanation and other times the recommendation needs tailoring to their budget. They may still decide against cover, but we should give always them the opportunity to make that decision with a proper understanding of the risks.
October's announcements could create more opportunities to buy, borrow and plan ahead. Our contribution is to turn those opportunities into informed decisions. That means explaining the commitment beyond the attractive headline, checking what the customer has understood and staying involved when their circumstances change. More choice is welcome. Helping people use it well is where good advice earns its keep.
Malcolm Davidson (pictured top) is managing director at UK Moneyman
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