Just 23% of intermediaries say the Chancellor is right to roll back a range of post-financial crash restrictions in the mortgage market. 

Last month, Rachel Reeves (pictured) said in her Mansion House speech to the City: “In too many areas, regulation still acts as a boot on the neck of businesses”.    

She said the government would press ahead with a range of reforms to boost business growth across retail investment, capital markets, regulation, pensions, as well as the home loans industry. 

A key reform by the Bank of England’s Financial Policy Committee in the mortgage market is to allow mortgages to be available at over 4.5 times a buyer’s income, a restriction that has been in place since 2014.  

The Chancellor said this move will create up to 36,000 additional mortgages for first-time buyers over the next 12 months. 

Nationwide, Newcastle Building Society and Nottingham Building Society are among a range of lenders who have raised their loan-to-income ratios in recent weeks, while Lloyds Banking Group said it would set aside an extra £4bn for high LTI lending.

But 30% of mortgage brokers polled by the specialist buy-to-let lender say the Reeves reforms would lead to riskier loans. 

Another 16% of advisers argue the reforms would represent a boost for FTBs, but only 7% assessed that the reforms would kick-start economic growth.    

Although, almost half of brokers, or 47%, say the Chancellor is merely “tinkering” with mortgage rules and that the reforms are “not a big deal”. 

Landbay sales and distribution director Rob Stanton says: “The chancellor says she plans to tear up ‘reams of financial red tape’ and be ‘ruthless in slashing rules that make the UK uncompetitive’.   

“But brokers aren’t quite so sure that looser mortgage lending rules will deliver that.  While Rachel Reeves’ ambition is clear, our research shows brokers are cautious.   

Stanton adds: “Only a quarter of the brokers we polled support rolling back post-crisis regulations, with nearly half dismissing the changes as mere tinkering.   

“At Landbay, we understand the need for growth, but striking the right balance between access to lending and managing risk is critical to avoid repeating past mistakes.” 

Landbay polled a range of brokers in July.