Less than a quarter (23%) of mortgage brokers back plans for looser limits on mortgage lending, Landbay has found.

The firm’s latest survey follows Chancellor Rachel Reeves’s Mansion House speech, which set out a vision for Britain’s financial services industry, based on a regulatory system geared towards growth rather than eliminating risk.

These plans included lifting limits on mortgages, "simplifying responsible lending and advice rules for mortgages, supporting home ownership and opening a discussion on the balance between access to lending and levels of defaults".

Landbay found that while 16% of brokers believe that the reforms would represent a boost for first-time buyers, only 7% thought the reforms would kick-start growth.

Furthermore, 30% of brokers surveyed thought that the reforms proposed by Reeves would lead to riskier loans, while 47% said the chancellor was just "tinkering" with mortgage rules and that "it’s not a big deal".

Sales and distribution director at Landbay, Rob Stanton, said: "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.

"We’re committed to supporting a stable and sustainable buy-to-let market, but these changes need careful consideration to ensure they don’t compromise long-term financial stability. Rather than relying on the cutting of red tape we’re exploring opportunities to ensure our range is competitive, while harnessing innovation through product transfers to increase routes for landlords set to refinance."

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