By clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
The Chancellor has announced plans to overhaul financial services to support savers and first-time buyers.
The government says it wants to make financial rules ‘work for growth, not just for risk’ – but what does that mean for you?
Here, Which? explains the key announcements affecting your savings, investments and chances of getting on the housing ladder.
The Mansion House speech is an annual event where the Chancellor sets out their priorities for the financial sector.
This year’s speech, delivered by Chancellor Rachel Reeves on 15 July 2025, focused on boosting investment, supporting first-time buyers and making the UK a more attractive place for financial services.
The reforms are part of the government’s new Financial Services Growth and Competitiveness Strategy.
Reeve's speech focused on plans to encourage savers to invest, highlighting plans to rethink how investment risks are presented. Reeves stated: 'we have presented investment in too negative a light'.
A new campaign to promote investing will launch next April, alongside a review of the 'current approach to risk warnings' around investments, which is expected to conclude in January.
Any changes to how investments are explained to consumers are unlikely to take effect before the next tax year.
There has been ongoing speculation about possible changes to cash Isas particularly around whether annual allowances could be cut.
Reeves confirmed the government is still considering changes to Isas but gave no details on what these might look like.
The Treasury will continue to engage with businesses 'in the coming months,' meaning it may be some time before any reforms are confirmed.
For now, cash Isa rules remain unchanged. You can continue saving up to £20,000 each tax year tax-free.
A permanent mortgage guarantee scheme will be introduced to support low-deposit buyers.
The scheme gives lenders protection if a borrower defaults, helping them offer 95% mortgages – where buyers only need a 5% deposit.
The scheme replaces the previous temporary version, which ended in June, and is intended to keep low-deposit deals available even during periods of economic uncertainty.
Reeves confirmed plans to reform the Financial Ombudsman Service, including introducing a ten-year time limit on complaints.
The government also welcomed the Ombudsman’s decision to reduce the interest rate applied before a decision is made, cutting it from 8% to the base rate plus 1%.
The changes aim to bring more consistency to compensation decisions and limit long-running complaint cases.
Find the right mortgage using the fee-free service provided by L&C Mortgages
Compare mortgagesIf you click on the link and complete a mortgage with L&C Mortgages, L&C is paid a commission by the lender and will share part of this fee with Which? Ltd helping fund our not-for-profit mission. We do not allow this relationship to affect our editorial independence. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Alongside the Mansion House strategy, regulators have confirmed changes to borrowing rules that could make it easier for some first-time buyers to get a mortgage.
The Financial Conduct Authority (FCA) has relaxed long-standing restrictions on how much lenders can offer relative to a borrower’s income.
Previously, lenders were limited to issuing 15% of new mortgages at more than 4.5 times a borrower’s salary.
Under the updated rules, individual lenders will be allowed to exceed this 15% limit, though the overall cap will remain in place across the wider market.
The changes were confirmed by the FCA in its July Financial Stability Report, which forms part of the wider Mansion House reform package.
The government estimates the change could help up to 36,000 extra first-time buyers get a mortgage in the first year.
Changes to LTI limits have allowed Nationwide, the UK’s largest lender to first-time buyers, to announce changes to its Helping Hand scheme.
The scheme offers significantly higher borrowing than Nationwide’s standard mortgages, with eligible buyers able to borrow up to six times their income.
From today, single applicants can apply for a mortgage of up to six times their income with a salary of at least £30,000, reduced from £35,000. Joint applicants need a combined salary of £50,000 to qualify, down from £55,000.
Nationwide expects these changes could help around 10,000 extra first-time buyers each year.
Find the best deals, avoid scams, and grow your savings with our expert guidance. From only £4.99 a month, cancel anytime.
Join Which? MoneyThe reforms could help some first-time buyers by making it easier to borrow with a smaller deposit or a higher loan-to-income ratio.
Ben Merritt, director of mortgages at Yorkshire Building Society, said the changes offer first-time buyers 'a lifeline to borrow what they need for their dream home in line with our commitment to responsible lending.'
However, brokers have warned the reforms will not fix broader affordability problems, especially in high-cost areas.
Nicholas Mendes, mortgage technical manager at broker John Charcol, said that in parts of London and the South East, buyers may still struggle to afford a property even if they qualify for a mortgage.
Mendes also highlighted the need for responsible lending, warning that while higher loan-to-income borrowing is 'not inherently risky', it should be supported by strong advice, proper oversight and a clear understanding of borrowers’ wider circumstances.
Mendes said: 'We know from experience that rapid policy change, if not carefully implemented, can lead to unintended consequences, particularly if interest rates were to fluctuate in a way that puts additional pressure on borrowers.'
