A recent survey revealed that 41% of individuals aged 18 to 24 have faced mortgage application rejections, highlighting the challenges young applicants face in the current market.

For first-time buyers, the average increase in mortgage offers from HSBC UK is projected to be £39,000, further enhancing their purchasing power.

Britain's largest building society, Nationwide, has announced significant reductions in mortgage rates, with the lowest available rate now at 3.89% for both two and five-year fixed-rate options, effective April 23, 2025.

HSBC UK's changes are focused on improving affordability assessments, benefiting both new purchases and remortgage applications.

First Direct anticipates that its adjustments will positively impact around 85% of mortgage applicants, with an average borrowing increase of £22,000.

Both HSBC UK and First Direct are also implementing rate reductions across a wide range of mortgage products, with First Direct reducing rates by up to 0.14 percentage points on over 100 products.

Potential applicants are advised to limit simultaneous credit applications and maintain a clear paper trail for their deposit sources to improve their chances of approval.

These cuts aim to enhance affordability for both new homebuyers and those looking to move, making homeownership more accessible.

Henry Jordan, Nationwide's Director of Home, emphasized that these competitive rates are designed to attract first-time buyers and home movers.

In parallel, HSBC UK and First Direct are adjusting their lending criteria, which may increase borrowing capacity for many individuals, potentially allowing an additional 20,000 customers to secure mortgages.

The Financial Conduct Authority (FCA) is currently reviewing mortgage lending expectations to potentially simplify access to home loans, which could benefit a broader range of applicants.

Common mistakes leading to mortgage application rejections, particularly among first-time buyers, include not being registered on the electoral roll and administrative errors.