Month: May 2025

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.

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.

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.

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.

Movera has appointed Glen Walker as its director of professional standards. Walker brings over two decades of experience in client-facing and risk-focused roles, having worked across both large financial institutions and specialist firms. In his first 100 days, Walker has introduced a new risk management framework, implemented a risk management platform, and begun a full reshaping of the professional standards function to support Movera’s growth plans. As part of his long-term vision, he is now expanding the professional standards team. The company has started recruiting for a number of new roles, including within Movera’s financial crime, advisory, client care and technical support functions. Movera group chief operating officer Craig Underwood says: “Glen’s appointment is a significant step forward for us. He brings not only deep technical knowledge but a leadership style that’s grounded, people-focused and future-ready.” “The work he’s doing to build out the team and bring professional standards to life across the business will support our long-term growth and create exciting development opportunities for talent across Movera.” The post Movera appoints Walker as director of professional standards appeared first on Mortgage Strategy.

Mortgage finance is at its most affordable level since the end of last year, new data from Stonebridge reveals. The national mortgage and protection network’s latest bi-monthly Mortgage Affordability Index reveals that mortgage repayments accounted for 36.9% of the average borrower’s salary in March – down from 37% in January and February. It means that mortgage finance is at its most affordable since December last year when mortgage repayments accounted for 36.5% of the average borrower’s salary. The long-running average is 35.9%. The improvement in affordability in March was down to a small uptick in wages and a marginal reduction in mortgage rates. Stonebridge’s data shows the average consumer borrowed £194,372 for their mortgage in March – the highest amount since October last year and up 0.8% on the previous month. Average wages were up 0.5% on the previous month in March, according to the Office for National Statistics, while the average mortgage rate fell from 4.53% to 4.5% – the level it was at last November, according to Bank of England (BoE) figures. Commenting on the figures Stonebridge chief executive Rob Clifford said: “Mortgage affordability improved slightly in March, but after a turbulent three years, even such modest progress matters. Our affordability index shows that stability is returning to the market, and with it, an appropriate sense of confidence. That shift in sentiment is just as important as the headline numbers.” “The good news is that the outlook for borrowers looks increasingly positive. The Bank of England’s recent rate cut — and that further cuts are very likely — has given lenders the confidence to reduce pricing even further. He concluded: “We’re still some way from a fully-fledged recovery in market activity, but momentum is clearly building. For brokers, any positive pricing and market news is always an opportunity to engage with existing customers and continue to strengthen that relationship – and deliver even better consumer outcomes.” The post Mortgage finance at most affordable since 2024: Stonebridge appeared first on Mortgage Strategy.

Vida almost doubled home loan originations to £369m over the last year as it took advantage of the shift in funding its move to becoming a bank gave the business.  It said originations jumped 94% in the 12 months to the end of December compared to a year ago, in a period that saw the lender gain bank status in November.     “While pursuing banking licence approval, we were very careful to maintain a clear focus on supporting our mortgage customers and intermediary partners, preparing the ground for the growth plans we have as a bank,” it said in its annual report. “We were able to begin to grow mortgage origination volumes across the year, in anticipation of the shift to retail funding.  “Mortgage applications in the year increased by 67% to £1.2bn, allowing us to finish the year with a strong pipeline of new business.” Its mortgage book lifted to £1.9bn from £1.7bn in the period. The business completed three successful securitisations raising £850m in the year and attracted £173m of retail deposits raised within the first month as a bank. The lender posted a pre-tax profit down 25% to £3.6m, as administrative expenses rose 11.7% to £36.2m as it moved to become a bank. Vida chief executive Anth Mooney said: “2024 was a milestone year for Vida, marking our transition from a wholesale funded mortgage lender to becoming a fully authorised specialist mortgage bank.  “Receiving our banking licence represents the culmination of many months of preparation, opening the door to a more diversified funding model with the launch of our retail deposit business.” Mooney added: “With our banking licence secured, we have entered 2025 with momentum and confidence.  “The year ahead will be all about leveraging our retail funding base to expand our mortgage product offerings, driving growth in our mortgage originations, and continuing to enhance customer and colleague experiences.” The post Vida sees new home loans almost double to £369m  appeared first on Mortgage Strategy.

Hanley Economic Building Society has expanded its residential mortgage range with the launch of a five-year fixed rate 100% loan-to-value (LTV) rent to own mortgage. The new mortgages are specifically available for properties within local ST postcodes. ST refers to Stoke-on-Trent and its surrounding areas, encompassing 21 postcode districts within six post towns. Eligible applicants must also have a household income of over £25,000pa. The rent to own mortgage offers a five-year fixed rate of 5.79%, and is available up to 100% LTV for eligible applicants meeting the society’s rent to own criteria. Loans can be offered up to 133% of current rental payments with proof required of full rental payments over a 12-month period. There are no application or arrangement fees though a valuation fee is applicable, subject to the property’s value. The product comes with an early repayment charge of 3% during the fixed rate period, but borrowers can make overpayments of up to 10% per year without penalties. The product comes with a maximum loan size of £350,000 and a minimum loan size of £30,000. Hanley Economic Building Society head of products and marketing David Lownds says: “This new 100% Rent to Own mortgage is designed to make homeownership a reality for those who may have struggled to save for a deposit.” “By eliminating the need for an upfront deposit, we are offering a practical solution for individuals, couples and families across the ST postcode region who are ready to take their first step onto the property ladder.” The post Hanley Economic launches 100% local rent to own mortgage appeared first on Mortgage Strategy.

Specialist distributor Crystal SF has strengthened its leadership team with the appointment of Gareth Shilton as group strategy director. Shilton has over 30 years of experience in financial services, having held senior roles at firms including Ocean Finance, where he was most recently CEO. He has worked closely with Crystal in a consultancy capacity since 2019. In his role as group strategy director, Shilton will focus on identifying opportunities for business development and operational efficiencies. Commenting on his appointment Shilton (pictured) said: “I’m thrilled to be joining at such a pivotal time in Crystal’s evolution. While the economic landscape presents its challenges, I see immense opportunity for the business to achieve greater efficiency and expansion. “The leadership team is focused on delivering strong commercial results, and I look forward to playing my part supporting the business, ensuring that every step taken aligns with Crystal’s long-term vision and potential. It’s an exciting challenge, and I can’t wait to get started.” Commenting on Gareth’s appointment, CEO Jo Breedon said: “We are delighted to welcome Gareth to the team at such a crucial moment in our journey. His wealth of experience at Ocean Finance and his familiarity with Crystal bring invaluable strategic insight. “ The post Crystal SF appoints Shilton as strategy director appeared first on Mortgage Strategy.