Day: May 15, 2025

Shawbrook lifted its loan book by 15% to £15.8bn in the first three months of the year compared to 12 months ago, driven by “strong demand” across its specialist commercial and retail markets.   The bank also completed the operational integration of The Mortgage Lender and Bluestone Mortgages last month into “a single retail mortgage business, creating a scalable, unified platform, leveraging the respective strengths of each brand and their distribution networks”.  It bought Bluestone for an undisclosed fee in 2023 and The Mortgage Lender for an undisclosed fee in 2020. And has appointed several senior managers who will work across all three brands.  The group said that it had also “simplified” its product transfer proposition for professional buy-to-let property investors, in a trading statement.  The business offers a range of lending including BTL, bridging and commercial loans as well as development finance.  Shawbrook chief executive Marcelino Castrillo said: “Our specialist proposition and the scalable technology platform we have engineered are delivering strong profitability, despite the pressure from the interest rate environment and competition for both assets and liabilities on margins across the UK banking sector.   “Notwithstanding our continued growth and investment in digital, we remain lean with our running costs broadly flat quarter on quarter.” The post Shawbrook raises loan book 15% to £15.8bn in Q1   appeared first on Mortgage Strategy.

Mortgage Broker Tools (MBT) has launched a vulnerable customer disclosure information service. The new service will provide brokers with an up-to-date, searchable database that outlines how to declare a customer as vulnerable to each lender. The service, designed in response to broker feedback, aims to help intermediaries meet their regulatory obligations and deliver the most appropriate advice to clients with additional needs. It will be available on the MBT platform and updated to reflect changes in lender policy. Research undertaken in November last year by Smart Money People, led by Newcastle for Intermediaries, found that more than 89% of brokers had encountered a vulnerable client in the previous year. However, more than 58% highlighted a lack of clarity around disclosure processes as a major barrier to providing appropriate support. MBT chief executive officer Tanya Toumadji says: “The FCA is very clear on the role that brokers play in identifying and supporting vulnerable customers, whether they are experiencing illness, disability, financial hardship or significant life events.” “However, a recent survey found that lack of clarity when it comes to knowing how to disclose vulnerabilities to lenders is a major hurdle for brokers. “This important piece of industry-wide research, spearheaded by Newcastle for Intermediaries, clearly demonstrated the need for clearer, more accessible information when it comes to disclosing vulnerable customers.” “Our new vulnerable customer disclosure database helps to address this, with clear information on how to declare vulnerabilities to lenders.” “By making this service easy to access, we’re helping brokers meet their obligations and offer tailored advice, without having to second-guess each lender’s process.” In March, the Financial Conduct Authority revealed that only four out of 10 vulnerable customers disclosed their needs to their financial services provider. However, it found that those who do open up tend to have better experiences. The post MBT launches vulnerable customer disclosure information service appeared first on Mortgage Strategy.

The Treasury has sold another slice of NatWest shares, taking the taxpayer’s stake in the high street bank to under 1%.  The government took its holding in the lender to 0.90% from 1.98% in a share sale to investors, according to a stock market statement. The taxpayer’s stake in the lender has fallen by more than two-thirds since last December, as Chancellor Rachel Reeves bids to fully exit the holding by 2025-26. The UK is on track to sell its stake in the bank this year. In September, Reeves scrapped the former Conservative administration’s plans to sell the state-owned shares to the general public in high profile TV campaign that would have featured former newsreader Sir Trevor McDonald. Reeves said the discounted public sale would “not represent value for money”. The Treasury’s share sales in the bank hit two milestones last year. In March, the shareholding fell below 30%, meaning the government was no longer classed as a “controlling shareholder” In July, the stake dropped below 20% meaning that by next year, the state will no longer be considered a “related party” – which requires additional transparency around its relationship with the bank. The sale means the government has now recouped more than £20bn from the sale of shares since the state rescued the bank from going bust during the height of the financial crisis in 2008. Taxpayers took an 84% stake in the business at the time after pumping £45.5bn into the lender. The post UK stake in NatWest falls below 1%  appeared first on Mortgage Strategy.

Ministry of Justice figures reveal that compared to the same quarter in 2024 there were increases in mortgage possession claims from 5,182 to 6,765 (31%), and repossessions by county bailiffs from 769 to 1,092 (42%). Mortgage possession claims rose across all regions Landlord possession orders and repossessions have increased – there were increases in orders from 18,140 to 18,713 (3%), and repossessions from 6,938 to 7,308 (5%). All types of landlord claims remained concentrated in London. However, separate figures for the first quarter released on the same day by UK Finance paint a slightly different picture of the market. These figures indicate that there were 90,140 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the first quarter of 2025, 2% fewer than in the previous quarter. Within the total, there were 30,700 homeowner mortgages in the lightest arrears band. This was 3% fewer than in the previous quarter. Responding to the statistics, Generation Rent chief executive Ben Twomey said: “Everyone needs a secure and affordable home, it’s the foundation of our lives. Evictions cause huge emotional and financial distress for renters, while putting pressure on local councils to pick up the pieces. It’s no wonder the number of people trapped living in temporary accommodation, at huge cost to councils, is at record levels. “It’s right the government will outlaw ‘no fault’ Section 21 evictions through the Renters’ Rights Bill. This change can’t come soon enough.” Debt charity StepChange public policy manager Adam Butler said:“This is an incredibly uncertain time for mortgage holders. While last week the Bank of England cut the base rate by 0.25%, which could provide some relief for borrowers, it’s unlikely it’ll have an immediate, meaningful impact for those who are struggling to keep up with mortgage payments. Although overall mortgage arrears remain low, the rise in possessions raises concerns that those already struggling may be especially at risk of falling into problem debt.” “Last year among our clients with a mortgage, we saw average mortgage arrears jump by a staggering 69% – from £6,054 in 2023 to £10,239 in 2024. At the same time, households are being hit with a fresh wave of cost increases, including higher energy bills, council tax, and water bills, further stretching already tight budgets.” Broadstone senior director risk Richard Pinch pointed out that although mortgage possession claims and orders had increased, these numbers remained below the long-term average. “Meanwhile, the number of people in arrears on their mortgage has again decreased this quarter, suggesting borrowers’ affordability remains stable. “However, the outlook is uncertain and households face near-term economic headwinds. While GDP figures released (15 May) show that the economy performed better than expected in Q1, many economists suggest it may be short lived as tariffs and the government’s hike in national insurance contributions for employers take hold.” The post MoJ reveals 31% increase in mortgage possessions appeared first on Mortgage Strategy.

Private renters remain under pressure as they spend a third of their wages on housing, a third of them struggle to meet these costs while only just over half have pulled together savings, the latest English Housing Survey shows.   Renters spent the highest proportion of their income on housing, 34% up from 32% last year, according to the 2023 to 2024 report, by the Ministry of Housing, Communities and Local Government, subtitled Experiences of the ‘housing crisis’.  Renters were the most likely to report difficulty affording their housing costs at 32%, against 19% of those with a mortgage.  However, owner occupiers were the most likely to have savings, at 79%, compared to 52% of tenants.  The most common savings amount for owner occupiers was £50,000 or more, with 33% of this group reporting savings of this amount.   By comparison, 32% of private renters most commonly had savings between £5,000 and £15,999.  However, the ambition of private renters to own a home was strong, with 2.6 million of them saying they expect to buy a home in the future, compared to under 1 million social tenants.  The study says: “Younger private and social renters were more likely to expect to buy than older renters, as well as those on higher incomes, those in lone male households and those with dependent children.”  Quilter financial planner Thomas Lambert adds the survey “demonstrates just how many private renters are caught in a state of flux.   “Private renters not only spend the highest proportion of their income on housing, coming in at just over a third, but they are also the most likely to struggle to afford their housing costs and just half have savings behind them.   “Those having difficulty paying rent rose considerably from 27% in 2019-2020 to 32% in 2023-24, which followed the sharp rise in rent costs seen during the cost-of-living crisis and mortgage market turmoil.”  However, the report highlighted a strong pipeline of first-time buyers.  The overall number of FTBs rose from 617,000 households in 2013-14, to 827,000 in 2019-20 and 975,000 in 2023-24.  The majority of FTBs were aged between 25 and 34 years old, 60%, while 21% were aged 35 to 44 years old.  The study points out that 15% of FTBs bought a property in London, compared with 2013-14, when 25% of this group bought a home in the capital. Quilter’s Lambert adds: “Today’s report lays bare just how many people are stuck wanting to take their first step onto the property ladder but are faced with high housing costs and a subsequent inability to save.   “Affordability remains a fundamental constraint, with high house prices, elevated monthly repayments and the need to build a suitable deposit all while needing to maintain current housing commitments.   “The changes to stamp duty have compounded this further, and FTBs now face even greater hurdles.”  The post Tenants struggle to pay rent and save for home: Housing dept  appeared first on Mortgage Strategy.

The Competition and Markets Authority will probe Aviva’s £3.6bn takeover of Direct Line to study if it weakens competition in the insurance market.   The investigation will also be one of the first tests of the regulator, which has pledged to speed up its enquiries following government pressure.  Its probe into the insurance firms will assess whether the move will lead to a “substantial lessening of competition” across the areas the firms operate in.  The regulator has 40 days in its phase 1 investigation to evaluate the deal’s possible impact on competition in the sector.  It has set a 10 July deadline, at which point the regulator will either give the merger the green light, or proceed to a more in-depth phase 2 investigation.  Aviva, the UK’s largest insurer, agreed its takeover of Direct Line in December, with the smaller firm running a range of brands such as Churchill and Green Flag, it also offers home, travel, pet and life insurance.  Aviva sells a range of insurance, wealth, retirement and equity release products and has more than 20 million customers.  Aviva is led by chief executive Amanda Blanc (pictured). Adam Winslow, who became the chief executive of Direct Line just over a year ago, joined from Aviva where he was head of its UK and Ireland general insurance division. In February, business secretary Jonathan Reynolds said that watchdogs needed a “regulation reset” and authorities should move away from “theoretical issues” that showed “little understanding of how businesses and markets actually operate”.    He said that the Business department had published “a consultation on a new strategic steer for the Competition and Markets Authority to accelerate this work”.  Competition and Markets Authority chief executive Sarah Cardell welcomed the move and added: “We are already working at pace to bring about a step change in the operation of the mergers regime over the coming months.”    The body said its probes would be characterised by “pace, predictability, proportionality and process” and has published a Mergers Charter, which sets out its new way of working.     The move came after former Amazon UK head Doug Gurr was appointed as interim chair of the competitions body in January, unexpectedly replacing Marcus Bokkerink, as the government pushes ahead with its drive to cut red tape.    Also in February, Aviva posted retirement sales that jumped in 2024, but its equity release business fell due to “lower levels of market activity.”     The financial services group said its retirement sales lifted 33% to £9.4bn last year, from 12 months ago, driven by its highest year of bulk purchase annuity sales which came in at £7.8bn.   But equity release new premiums slumped 38% to £265m, “due to lower levels of market activity and maintaining pricing discipline to ensure a sufficient investment return to support our annuity businesses”.    The post CMA launches probe into Aviva £3.6bn Direct Line takeover    appeared first on Mortgage Strategy.

TAB has joined the Bridging & Development Lenders Association (BDLA) as a lender member. TAB is a whole life cycle, real estate finance and investment platform to cater to property projects that are not aligned with the criteria of traditional lenders. BDLA membership now exceeds 90 organisations, including lender members with a combined loan book of more than £10.3bn. TAB chief risk officer Jason Shead says: “Being part of the BDLA reflects our dedication at TAB to professional standards, responsible lending and collaboration.” “We believe the bridging market has huge potential, and through the BDLA we look forward to contributing to industry discussions and activity that drive our sector forward and help us to support a growing number of borrowers to achieve their objectives.” BDLA chief executive officer Vic Jannel adds: “TAB is an exciting and forward-thinking addition to the BDLA’s membership and reflects the diversity and evolution we’re seeing across the bridging and development finance market.” “As the sector continues to grow and diversify – with new entrants, new structures, and increasingly bespoke funding solutions – the BDLA’s role as a representative voice for lenders of all sizes and specialisms has never been more important.” Last month, it was announced that Together had joined BDLA. The post TAB joins Bridging & Development Lenders Association appeared first on Mortgage Strategy.

Monthly construction output is estimated to have grown by 0.5% in March 2025, according to the latest construction output report from the Office for National Statistics. At the sector level, five out of the nine sectors grew in March 2025; the main contributors to the monthly increase were private housing and infrastructure new work, which rose by 2.3% and 2.5%, respectively. Commenting on the new figures, McBains managing director of property and construction consultancy Clive Docwra suggested March’s increase in output coming off the back of moderate growth in February, would give further cheer to the construction industry, especially with the increase in new work in housing and infrastructure. “However, it’s too early to say if the sector has turned a corner in terms of growth being maintained.  Caution amongst investors is still apparent in a number of sectors due to the current geopolitical climate and the UK economic outlook – and bear in mind that this return covers the period before President Trump’s tariffs were announced, which shook investors’ confidence. “Furthermore, although private housing new work grew by 2.3% in March, the industry will be worried that this week’s announcement on the proposed immigration changes restricting the number of skilled workers will have a significant impact on future work capacity – and it will also have a huge bearing on whether the government can meet its housing targets too.” He added that another cut in interest rates next month would help give an injection of confidence in the industry during a period of uncertainty. Hampshire Trust Bank managing director development finance Neil Leitch said the increase in private housing showed that developers were  finding ways to navigate the many hurdles they face in producing the homes the nation so badly needs. “The planning system remains a concern, acting as a bottleneck where SME developers in particular face unacceptably long waits for decisions. These delays can be disastrous for such projects, before you even consider the cost pressures and labour shortages the developers have to account for. He added: “Alongside improving the planning process, as an industry we need to ensure developers enjoy access to funding that reflects their actual needs. That means flexibility and a bespoke structure, allowing the developer to push ahead with confidence. Without that, it will be an uphill battle to improve the rate of housing output.” Earlier this month, both the S&P Global UK Construction PMI and the Glenigan Construction Index pointed to positive signs within a resilient housebuilding sector. The post Private housing work helps boost construction figures: ONS appeared first on Mortgage Strategy.

There were 90,140 homeowner mortgages in arrears in the first quarter of 2025, 2% lower compared to the previous quarter, UK Finance reveals. The latest data shows that the number of buy-to-let (BTL) mortgages in arrears also fell, down 6% compared with the previous quarter, to 11,830. The overall proportion of mortgages in arrears remains low, at 1.03% of homeowner mortgages and 0.61% of BTL mortgages. The number of homeowner and BTL mortgages in arrears in Q1 2009, the peak in arrears numbers during the global financial crisis, was 209,600. During the quarter, the number of homeowner and BTL mortgages in early arrears fell, which suggests that any rise in total arrears in the next quarter will be limited. UK Finance director of mortgages Charles Roe says: “The number of mortgages in arrears fell slightly compared to the previous quarter and the arrears numbers appear to now be on a downward trend. The recent cuts in interest rates and mortgage rates will also help households with their monthly bills.” “This is a positive development, but we recognise that some households may still be struggling. Lenders are committed to supporting anyone facing financial difficulties and offer a range of tailored solutions.” Meanwhile, Target group sales and growth lead Melanie Spencer states: “Arrears may look good now but employment levels deteriorated in March. Chancellor Rachel Reeves’ £20bn tax raid on employers has squeezed firms’ profits and figures released by the Office for National Statistics have revealed the number of payrolled employees fell by 53,000 over the first three months of the year.” “Their early estimate of payrolled employees for April showed a decrease by 33,000. The number of job vacancies has also fallen again, with the rate of decline increasing in the last few months.” “The business case for hiring has been weakened by a perfect storm of last month’s increased employer national insurance contributions and above-inflation increases to the minimum wage, alongside a wave of measures in the Employment Rights Bill which will make hiring staff riskier and costlier. The labour market is clearly cooling.” “Weakening labour market activity will inevitably feed into an increase in greater arrears in the future. That’s coming at banks and building societies fast – and when it arrives, unprepared lenders will feel like they’ve been hit by an express train.” The data also found that while possession numbers increase, they remain low compared to historic norms. A total of 2,030 homeowner and BTL mortgaged properties were repossessed in Q1 2025, which is 85% lower than the 13,200 seen in Q1 2009. Possessions currently taking place predominantly relate to older mortgages, more than two-thirds of possessions relating to mortgages arranged at least a decade ago. Spicerhaart Corporate Sales divisional director David Miller comments: “It is really positive to see mortgage arrears continue to fall across both residential and buy-to-let. While possessions do creep up – likely pointing to greater difficulties in higher arrears band – they still remain at historic lows and demonstrate the good work of lenders.” “In recent weeks and months, we’ve certainly seen positive changes with rate reductions across the market and the recent cut to the base rate, which is likely not to be the last. This will certainly help with the overall arrears picture moving forward – although we cannot underestimate the prospect of sticky inflation and potential pressures around the labour market.” The post Homeowner mortgages in arrears down 2% in Q1 2025: UK Finance appeared first on Mortgage Strategy.

Gen H has promoted Graham McClelland to chief executive officer succeeding the lender’s co-founder Will Rice. McClelland has worked at Gen H for almost four and a half years, most recently working as deputy chief executive officer and chief financial officer. Rice will remain on the board of directors as a non-executive director to support Gen H. Commenting on his promotion, McClelland says: I am delighted to have been given this opportunity to lead the business as Will moves to a non-executive role. Will has done a fabulous job to build Gen H from scratch into the leading innovator in the UK mortgage market.” “It is an honour to take on the challenge of delivering this next phase of growth, supported by a tremendous team of colleagues, and a series of committed partners across the mortgage sector.” Rice adds: “I have found the six years that I have spent building Gen H to be a hugely challenging and rewarding experience. My co-founder Sophia and I embarked upon this project because we believed that there was room for lenders to do so much more to support the ambitions of people struggling to find their place on the property ladder.” “I am proud to have built a business that has stayed true to this founding ethos and is driving true innovation in the mortgage market.” “I am extremely fortunate to have worked with wonderful colleagues who bought into our vision and who have helped us to build a truly customer-obsessed culture.” “I have great confidence in handing the reins to Graham, who has been an integral member of our leadership team for the past four years. The company has an exciting future under his leadership, and I will remain involved to support him and the team as they drive the business forwards.” Last week, Gen H trimmed prices on two-, three- and five-year products, with cuts focusing on high loan-to-value (LTV) products and its New Build Boost offering. The post Gen H promotes McClelland to CEO succeeding Rice appeared first on Mortgage Strategy.