Day: May 23, 2025

The Financial Conduct Authority challenged lenders to “rebalance” how they view risk by looking at savings when weighing up mortgages and unlocking the later life home wealth market.   FCA director of retail banking Emad Aladhal said that although the mortgage market is “resilient,” it has become an area “that some creditworthy people can struggle to access”.  Aladhal’s comments came at the UK Finance annual mortgage Lunch in London yesterday, ahead of a speech by UK Finance chief executive David Postings.  The regulator said: “Affordability has been stretched, with increasing numbers of consumers borrowing for longer, and many projected to be repaying their mortgage into later life.   “In the years to come, holding mortgage debt into retirement will no longer be a niche, but increasingly the norm.   “Has safety come at the expense of access to creditworthy borrowers? Has the right balance been struck?”  “And if the market was to adapt its risk appetite – to widen access further – how could we do so without compromising the overarching principle to lend responsibly?”  The watchdog has promised its second summer review in June will be a wide-ranging paper “on the future of the mortgage market and conduct regulation”.      The FCA has said the review will cover:  the market’s collective appetite for risk, and how we might approach managing changes to risk appetite   how we can create space for innovation, for example, through changes to affordability assessments   how customers are supported to access the market and make the right choices, for example, through changes to our disclosure requirements  how we ensure we are all prepared for an increase in demand for later life lending  Yesterday, Aladhal asked lenders to consider “how to assess affordability and default risk in ways that could support more customers gaining access to lending.  He added: “How could a customer’s savings track record – either through cash savings, ISAs or their pension – form part of their risk profile when applying for a mortgage?”  The regulator also urged lenders to take a fresh look at the equity release market.  He pointed out: “Housing is a significant store of value: there is around £9.1tn embodied in this country’s housing stock – and for the current cohort of retirees, outright ownership is the fastest growing tenure.   “Should we be prepared to support more older homeowners to access their housing wealth?  “Importantly, where a mortgage of some kind is the right option in later life – how could it be made more attractive and offer greater value?”  Aladhal added: “We are already listening and considering carefully where to target our efforts to deliver a more innovative and accessible market.” The post FCA encourages lenders to ‘rebalance’ mortgage risk   appeared first on Mortgage Strategy.

The Land Registry has begun to share data with law firms in a bid to cut down on the 800,000 incomplete applications it receives a year.   The agency says faulty applications cost the sector up to £19m a year and slow down registrations.  These mistakes range from wrong names or title numbers on applications, to missing evidence and incorrect ownership details.  However, the body says when looked at firm by firm, the percentage of applications with avoidable mistakes varies from 0% to 24%, and will now target firms that make the highest number of mistakes, that require follow-up requests, or requisitions.  It says: “HM Land Registry is now sending data to customers on the percentage of their applications where these requisitions could be avoided before the application is submitted.”     It adds: “The aim is for registrations to be processed first time, without the need for clarification or further information to support the application.”  The body says that, based on average pay levels in the sector, “avoidable” clerical errors cost around £5 each, while chasing third parties for a document or consent costs £30.  The Council for Licensed Conveyancers chief executive Sheila Kumar adds: “Many conveyancing practices are doing a great job and we have seen others make recent progress too, so we know there is scope for practices that are not performing as well to improve.   “We are already using data from the Land Registry as part of our risk profiling of individual practices and we expect conveyancers to make use of this data and the training available from the Land Registry to improve their services.”  The Land Registry adds that it already offers free live and self-service training “on how to get applications right first time and has trained 5,000 people in law firms over the past six months”.  In February, the agency said it would introduce digital checks to cut back on simple application mistakes, which will save the department an estimated 300,000 hours a year by 2028.  Also, on 4 February, housing minister Matthew Pennycook wrote to Land Registry chief executive and chief land registrar Simon Hayes, saying that he expected the agency to “digitalise and modernise its systems and services.” The minister added that more broadly he expected the body to “digitalise and improve the home buying and selling process,” in line with the government’s target of building 1.5 million homes over the next five years.  The post Land Registry to share data with law firms to cut conveyancing errors   appeared first on Mortgage Strategy.

Fixed rate mortgage cuts continue to be the general choice among lenders this week, but as Moneyfacts spokesperson Caitlyn Eastell observes, the momentum has cooled a little on previous weeks. Week-on-week, the reductions pushed the average two- and five-year fixed rates marginally lower to 5.10% and 5.07%, respectively. The major brands to reduce selected fixed rates this week included TSB by up to 0.10%, Lloyds Bank by up to 0.09%, Halifax by up to 0.09%, Barclays Mortgage by up to 0.49%, Santander by up to 0.19%, and HSBC by up to 0.21%. However, Lloyds Banks and Halifax also moved to increase rates by up to 0.14%. Building societies made a few rate moves this week, those to cut included Yorkshire Building Society by up to 0.44%, West Brom Building Society by up to 0.23%, Principality Building Society by 0.01%, Vernon Building Society by up to 0.11%, Suffolk Building Society by up to 0.24%, Newcastle Building Society by up to 0.40% and Leek Building Society by up to 0.15%. A few non-mutual lenders moved to reduce rates such as The Mortgage Lender by up to 0.35%, Bluestone Mortgages by up to 0.25%, Atom Bank by up to 0.15%. However there were rate rises too –  Nationwide Building Society increased by up to 0.25%, Leeds Building Society by 0.10%, Yorkshire Building Society by up to 0.10%, Principality Building Society by up to 0.12%, Leeds Building Society by up to 0.10%, Loughborough Building Society by up to 0.30% and Vernon Building Society by up to 0.20%. According to Eastell, one of the eye-catching deals to hit the market this week was a two-year fixed rate deal from HSBC, priced at 4.81% and available at 95% loan-to-value for home buyers. “It includes a free valuation and £500 cashback, adding to its appeal there is also no product fee making this an ideal option for borrowers with smaller deposits and are looking to save on the upfront cost of their mortgage.” Commenting on the current market, she added: “It is promising to see the rate cutting trend continue this week and it will likely please both existing and prospective borrowers, as they may start seeing improvements to their monthly repayments after they secure the most competitive deals. “However, with inflation hitting its highest level in over a year it could be that the Bank of England holds off on any further base rate cuts to get inflation back under control and closer to their 2% target.” The post Fixed rate cut momentum calms: Moneyfacts appeared first on Mortgage Strategy.

This week’s top stories include April Mortgages unveiling a long-term 100% LTV home loan, and Gable Mortgages introducing five-year deals with 0% deposit. Explore these and other key developments below.  April Mortgages launches long-term 100% LTV home loan   April Mortgages launched a long-term 100% loan-to-value home loan called the No Deposit Mortgage. Offered on 10- and 15-year fixed terms, it allowed borrowing up to 4.49 times income, with no early repayment charges. The product included uncapped overpayments and automatic rate reductions as equity grew. Aimed at buyers with strong finances but no family support, it sought to address home ownership barriers without loosening lending standards. Gable Mortgages launches 0% deposit five-year deals Gable Mortgages launched two 0% deposit five-year fixed-rate deals for first- and next-time buyers, targeting ‘Generation Rent’ customers struggling to save for a deposit. Rates were set at 5.95% for standard and 5.65% for new builds. Loan sizes ranged from £125,000 to £1m, with loan-to-income caps varying by employment status. The launch followed April Mortgages’ similar move, signalling growing lender response to deposit challenges faced by aspiring homeowners. FCA mortgage proposals ‘overlook’ broker advice: Ami   The Association of Mortgage Intermediaries argued that the FCA’s mortgage rule proposals overlooked the vital role of brokers, risking weaker consumer protection. While the FCA aimed to simplify switching and remortgaging, Ami warned this could reduce access to quality advice, leading to poorer outcomes. With 97% of mortgage business broker-led, Ami challenged the notion of market failure and criticised the push towards execution-only transactions that lack essential guidance and safeguards. Rate cut pace ‘too rapid’: BoE Pill Bank of England chief economist Huw Pill said the pace of base rate cuts had been “too rapid,” warning inflation pressures warranted a more cautious approach. Since August, the Bank had implemented four 25bps cuts, bringing the rate to 4.25%. Pill suggested reductions began too early and noted signs of weakening disinflation. With inflation expected to rise to 3.5%, he stressed that some policy restraint remained necessary despite improved economic growth forecasts. HSBC trims prices on resi, BTL and international mortgage rates HSBC cut rates across its residential, buy-to-let (BTL), and international mortgage ranges, offering the most rates under 4% since 2022. Two-year fixed rates at 60% LTV dropped to as low as 3.74% for premier switchers. BTL rates fell by up to 0.25%, and international mortgage rates reduced by up to 0.09%. The lender also lowered fees, aiming to attract remortgages, purchasers, and switchers with competitive pricing. Halifax changes rates on remo products Halifax announced rate increases on remortgage products effective 20 May. Two-year fixed rates rose by 0.18% for 0-60% LTV and 0.06% for 0-75% LTV, both with a £1,999 product fee. Five-year fixed rates increased by 0.15% for 0-60% and 0-75% LTV products. Customers had to submit applications by 8pm on 19 May to secure existing product codes. Earlier, Halifax HPI indicated a stronger housing market. Mortgage rates continued downward trend this week: Moneyfacts Mortgage rates continued to fall as over a dozen lenders cut fixed mortgage rates, according to Moneyfacts. Two-year fixes dropped by 0.03% to 5.11%, three-year fixes by 0.02% to 5.03%, and five-year fixes by 0.02% to 5.08%. Major lenders including NatWest, Virgin Money, and Barclays reduced rates, while some building societies also cut rates. However, 10-year fixes remained unchanged at 5.47%. The market showed mixed movements overall. Barclays latest lender to ease affordability tests   Barclays became the latest lender to ease affordability stress tests, allowing customers to borrow up to £30,000 more for home purchases. The relaxed criteria applied to residential purchase and remortgage applications. This followed similar moves by Nationwide, NatWest, Lloyds, Santander, Hodge, and Accord. Barclays aimed to help buyers amid current challenges while maintaining strong repayment measures. The FCA had previously criticised lenders for being overly cautious with first-time buyer loans. Mortgage Strategy Awards 2025 winners announced! The Mortgage Strategy Awards 2025 took place at London’s JW Marriott Grosvenor House Hotel. Hosted by comedian Maisie Adam, the event celebrated outstanding firms and individuals in the mortgage industry. Judges faced a tough task selecting winners from many highly commended entries. The ceremony honoured all shortlisted participants, recognising their achievements. Attendees helped make the evening a memorable celebration, reinforcing the awards’ status as a highlight of the mortgage industry calendar. Nationwide and Rightmove launch property lending check Nationwide Building Society and Rightmove launched a digital ‘property lending check’ allowing homebuyers to see if a property was likely eligible for a mortgage before viewing it. The tool assessed risks like flooding or short leases, aiming to save buyers time and stress. This feature, part of Rightmove’s mortgage in principle service, was designed to speed up the home-buying process and provide clearer affordability information earlier. The post Mortgage Strategy’s Top 10 Stories: 19 May to 23 May appeared first on Mortgage Strategy.

Together has lifted its maximum loan sizes across several commercial products.   The specialist lender says its top loan sizes on commercial term products increases to £5m, with loan-to-value ratios at 70% for purchase and 65% for remortgage products.   The firm’s buy-to-let top loan size also increases from £2.5m to £4.5m.  It adds that the maximum non-standard property LTVs increases to 65% from 60% for all applicable products across commercial and personal finance, including first and second charge and BTL mortgages.  For second charge homeowner business loans, the lender lifts its maximum loan size to £1m from £500,000 up to 70% LTV.  Together director of intermediary sales Tanya Elmaz says: “Through increasing our maximum loan sizes we are able to offer our award-winning flexible-criteria products, alongside our speed of service, to even more customers.  “Our confidence in the market is demonstrated by our strong appetite to lend, and our ability to provide funding on non-standard properties demonstrates the strength of our underwriting team.” The post Together lifts maximum loan sizes and LTV ratios across product ranges   appeared first on Mortgage Strategy.