Chancellor Rachel Reeves has thrown her weight behind building societies’ campaign to convince aspiring homeowners they may be closer to buying than they think.

The Chancellor met senior leaders from 13 mutual lenders in Leeds on Friday to discuss how the sector is supporting first-time buyers grappling with high house prices, smaller deposits and complex income patterns.

The roundtable, organised by the Building Societies Association, focused on what it describes as a growing “perception gap” among would-be buyers.

Research from the BSA found that 67% of aspiring first-time buyers said they could purchase sooner than expected when shown building society mortgages requiring low or no deposits.

NEVER SPOKEN TO A BROKER

Yet almost half (47%) of those hoping to get on the ladder have never spoken to a lender or broker about their options.

In Yorkshire, 59% have never sought advice, while more than half (54%) of those who have done so have not reviewed their options in the past year.

Building societies now account for 35% of all first-time buyer lending. Nearly half (46%) of that lending goes to borrowers under 30, 23% supports buyers with deposits of less than 5%, and 10% goes to first-time buyers aged over 45.

Mutual lenders at the meeting – including Nationwide, Coventry Building Society, Leeds Building Society, Yorkshire Building Society and Skipton Building Society – outlined how they are adapting criteria to support borrowers with non-traditional incomes, smaller deposits and varied employment histories.

Products across the sector include very low or no-deposit mortgages, extended repayment terms and shared ownership lending, alongside more flexible underwriting for borrowers who may not fit automated credit models.

OUT OF REACH

Chancellor of the Exchequer Rachel Reeves (main picture, inset) said: “For too long, homeownership has felt out of reach for young people.

“We’re changing that by building 1.5 million new homes this Parliament and reforming mortgage rules so more first-time buyers can get the keys to their first home.

“I welcome the Building Societies Association’s work to help people understand the options available to them.”

FIRST-TIME BUYER HELP

Sarah Harrison, chief executive of the Building Societies Association, said: “We welcome the Chancellor’s support for our ‘think again’ campaign and the opportunity to discuss with her how building societies are helping first-time-buyers across the country – and how with her support we can do even more.

“Too many people assume homeownership is out of reach without ever checking what is available to them. Building societies were set up to help ordinary working people buy their own homes, and that hasn’t changed.

“Whether it’s a smaller deposit, flexible ways of looking at income and affordability, or support for people whose circumstances aren’t straightforward, there are more options onto the property ladder than many first-time buyers realise.

“It’s worth anyone thinking about buying their own home to have a chat with a building society or mortgage broker, it could be the difference between thinking ‘maybe one day’ to ‘why not now’.”

DRIVING HOME OWNERSHIP

Annette Barnes, interim chief executive of Leeds Building Society, added: “It was fantastic to give the Chancellor the chance to meet some of our members who’ve benefited from changes we’ve made to be able to buy their first home.

“For example, we lowered the minimum household income required to apply for one of our Income Plus mortgages to £30,000.

“We’re always looking for new ways to responsibly help more people achieve their homeownership dream.”