Month: May 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.

West Brom Building Society has made rate reductions across its three-year fixed mortgage range, with cuts of up to 0.23%. The society has lowered its 95% loan-to-value (LTV) three-year fix with no fee by 0.23% to 5.08% while the 95% LTV three-year fix with a £499 fee has been reduced by 0.22% to 4.98%. The 90% LTV three-year fix with a £999 fee has been cut by 0.22% to 4.67% and the 90% LTV three-year fix with no fee has gone down by 0.22% to 4.88%. The society has also extended end dates, which will now run until September. The changes apply to products targeted to support first-time buyers and movers with lower deposits. In addition, the society is launching a three-year fixed rate product at 95% LTV specifically for new build homes, priced at 5.12% with a £499 fee. West Brom Building Society head of product Gareth Madeley says: “We’re happy to be reducing rates on our 3-year fixed range to support more customers into ownership. Supporting borrowers with smaller deposits is a key priority for us, especially in today’s challenging market, where affordability remains a key concern.” Last month, the West Brom lowered rates on two-year shared ownership and new build mortgage products. The post West Brom BS cuts three-year fixes by up to 0.23% appeared first on Mortgage Strategy.

The London rental market continues to display signs of resilience, according to the latest Foxtons Lettings Market Report. Property supply has expanded, easing concerns over landlord attrition, while pressure in historically overheated regions is beginning to ease. There was a 5% increase in market supply of new instructions in April 2025, which drove the total increase in market supply of new instructions year to date at 9%. With regards to demand, April saw a 3% month-on-month reduction in applicant registrations, which goes against the trend usually seen at this time of year. Average rental prices have edged upwards, suggesting landlords are cautiously rebuilding yields in response to previous margin compression The average rent achieved in April 2025 increased by 3% to stand at £589 per week. Commenting on the latest figures Foxtons managing director of lettings Gareth Atkins said: “April’s market data presents a unique challenge: a 5% rise in new instructions alongside a 3% decline in applicant demand. While these shifts aren’t dramatic, they further highlight the contrast between today’s environment and the much busier summer market of two years ago.” Earlier this week ONS reported that private rents had risen by 7.4% on average in May to £1,335 a month, from a year ago. The post London rental market holding up: Foxtons appeared first on Mortgage Strategy.

Some 10,000 firms will find it easier to submit customer complaints data under new reporting proposals, the Financial Conduct Authority says.   The City watchdog plans to “consolidate five current returns into one,” which it adds will also” improve the quality of the data we receive, helping us identify potential harm to consumers faster”.  It adds that it intends to standardise the number of times it asks regulated firms to send data returns so that the timing of the body’s requests is more predictable.   This will help firms to plan more effectively, as well as helping the regulator process the information more consistently, it contends.  Simplify Consulting lead consultant Dom House says the move by the regulator “represents a step forward for complaints processes”. House points out: “Simplification of complaints reporting should help firms who are currently completing multiple returns to reduce the burden of collation and submission, and should reduce the risk of mis-reporting. “In addition, and perhaps the biggest improvement in how complaints are viewed across the industry is that this will enable complaints data to be processed more efficiently by the FCA. “As data becomes more important across the industry, and at the FCA itself, improvements to the quality and availability of the data should enable firms to make better and smarter comparisons with where they sit within the market and against their peers.  “With the evolution of Consumer Duty more and more firms will be looking at this data to identify where their areas of focus should be.” FCA executive director for supervision, policy, competition and international Sarah Pritchard adds: “Streamlining the complaints data reporting process will ease unnecessary burdens on firms and strengthen our commitment to smarter, more effective regulation.   “These proposals will also help us collect better quality data on complaints received by firms which will help us spot and respond more quickly to harm as it arises.”  The FCA will accept feedback on the proposals in its consultation paper, CP25/13: Improving the complaints reporting process, until 24 July.  The watchdog has made several changes and launched a series of consultations since, Prime Minister Keir Starmer and Chancellor Rachel Reeves wrote to a range of regulators last November, asking them to loosen rules that will allow economic growth, particularly within the UK’s financial sector. The post FCA plans to ease customer complaints reporting for 10,000 firms    appeared first on Mortgage Strategy.

Inheritance tax receipts hit £0.8bn in April, up £97m on the same period a year ago, HMRC data shows.   The tax body says rises in the tax since March 2022 are due to a combination of more wealth transfers following “recent liable deaths”, rising property prices, and freezes on tax-free thresholds.  Inheritance tax is set to hit a record £9.1bn in 2025/26, according to the last Office for Budget Responsibility forecast made at the Spring Statement, with this figure set to rise to more than £14bn by the end of the decade.  Inheritance tax is not liable on estates worth less than £325,000, but after this, the standard rate above this threshold is 40%, although there are exemptions and reliefs for businesses and gifting.  Just Group director Stephen Lowe says: “The Treasury has enjoyed four years on the trot of record inheritance tax receipts and this April’s figures show a rapid start to 2025/26 with the tax raising over three-quarters of a billion pounds this month alone.”  Quilter tax and financial planning expert Shaun Moore adds: “Inheritance tax receipts for April stood at £0.8bn, which is £97m higher than last year, continuing the steady upward trend seen over recent years.   “With property prices remaining high and nil-rate bands still frozen until 2030, more families are being caught by inheritance tax, many without realising until it’s too late. “Upcoming changes to business and agricultural relief from 2026, and the inclusion of unused pensions in estates from 2027, mean this trend is unlikely to reverse any time soon.   “For those who are worried about inheritance tax, gifting remains the best defence against it, but this should be weighed against your own needs.” The post IHT levies hit £0.8bn in April: HMRC   appeared first on Mortgage Strategy.

House buyers paid £1.3bn in Stamp Duty in April, a £102m decrease from March, according to the latest HMRC data. April was the first month since the nil-rate thresholds dropped from £250,000 to £125,000. However, April was still the second highest month for stamp duty receipts this year, with buyers paying £848m and £1.1bn in January and February respectively. With the nil-rate threshold now halved, individual tax bills have climbed – with the bill on average priced home rising from £2,282 to £4,782. The current thresholds are equivalent to those introduced in 2014, when the average home in England cost £191,986. House prices have risen by more than 50% since then, but thresholds have stayed frozen – meaning far more buyers are going to be dragged into higher tax bands. In total, so far this year homebuyers have paid £4.6bn in property tax. Commenting on the latest figures, Coventry Building Society  head of intermediary relationships Jonathan Stinton said: “March saw a rush of buyers racing to complete before the threshold changes, yet in April buyers still paid a staggering amount in property tax. “Some of this could be from a lag of payments, but it also shows how much buyers are being squeezed, which brings a worry of long-term strain on the market.” He added: “When you’re juggling deposits, legal fees and moving costs, adding thousands of pounds in tax can push a move out of reach. It risks freezing people out of the market altogether – especially in higher priced areas where even modest homes now carry a hefty tax bill. “For many, moving isn’t just about a new address – it’s tied to bigger life steps like starting a family, downsizing in retirement or getting closer to schools and support networks. When those plans get delayed, it doesn’t just affect individuals – it risks the whole market slowing down.” The post April stamp duty receipts down on previous month: HMRC appeared first on Mortgage Strategy.