Day: June 4, 2025

The Monetary Policy Committee denied there was any ‘group think’ or a ‘cluster pattern’ in how the members voted on interest rates. Asked by Select Committee member and Liberal Democrat MP Bobby Dean why specific members seemed to consistently vote the same way – Catherine Mann and Huw Pill; and Andrew Bailey and Sarah Breedon – the BoE governor Andrew Bailey played down claims of a serious ‘divide in the committee’. Mann agreed and added that each member took their role very seriously but sometimes interpreted and weighted data differently. “Different people weigh the variables in different ways.” Last month, the Bank’s rate-setting Monetary Policy Committee voted in a 5-2-2 split to cut rates, with Dr Swati Dhingra and Alan Taylor pressing for a larger 0.5% reduction, while Catherine L Mann and Huw Pill were happy with the status quo. Five members Bailey, Breeden, Megan Greene, Clare Lombardelli and Dave Ramsden voted for the 0.25% cut. Dr Dhingra explained to the committee her reasons for being more aggressive in calling for 0.5% cut in June. She said that consumption and investment had been weak and the global situation had resulted in forecasts being revised downwards because the trade policy atmosphere looked very strained. “Alongside these two factors and the general view that we don’t need to weigh down on living standards as much as we have had to, to get price stability back on target – that was the reason I moved towards a larger reduction in bank rate this time.” Mann then explained to the committee her decision to advocate for a rate hold. She said that in February she had voted for a 50bps but from February to May the labour market had not loosened as much as she had expected and consumption was no weaker than she had thought. More importantly, Mann stressed that inflation, though decelerating, was not decelerating consistent with achieving the 2% target in the medium term.  The fact that financial markets had eased quite dramatically was also a contributory factor behind her ‘hold’ vote. Bailey, Dhingra, Breedon and Mann all agreed that the ‘glide path’ on inflation was downward but as Mann stressed, the volatile environment meant there were concerns regarding inflation pressures and this meant timeframes on hitting inflation targets remained uncertain. The post MPC members explains May split decision appeared first on Mortgage Strategy.

UK Finance has called for a comprehensive strategy to increase demand for green home improvements. In its latest report, UK Finance says there is a need for a blend of targeted policy measures, public information campaigns, and advisory services to encourage homeowners, landlords, and housing associations to retrofit their properties. The report draws on YouGov research to show the attitudes of UK consumers specifically towards heat pump technology. The UK needs to install around 1.5m heat pumps per year by 2035 to meet its carbon reduction goals, however, data shows consumer adoption rates are very short of these targets. Research revealed that 54% said the main barrier to discouraging them from getting a head pump was the high up-front cost, while 44% said they would switch if they were provided with a clear idea of the savings in running costs. The report sets out nine recommendations that UK Finance suggests should be included in the government’s upcoming Warm Homes Plan. These include establishing a government-led body or group to drive collaboration across key stakeholders, provide certainty for firms involved in retrofitting and launch a public awareness campaign with independent guidance to counter misinformation. In addition, it has asked for the government to provide grants, subsidies, and a coordinated plan to train sufficient tradespeople and rebalance electricity and gas prices through adjustments to levies/ targeted support. UK Finance urges the government to deploy funding to enable lower-cost green home lending, maintain and expand grant programmes to support green home improvements, set clear long-term expectations so households and firms can prepare and update energy efficiency metrics for accurate property performance and consistency. UK Finance director of sustainability policy Ian Bhullar says: “To meet our ambitious targets on greening the UK’s housing stock we need to drive demand and convince the public of the benefits.” “Lenders are committed to playing their part and through the government’s Warm Homes Plan we have the opportunity to really make a difference. Increasing demand for green home improvements will bring significant benefits, stimulate job creation, drive innovation, and reinforce the UK’s energy security in an increasingly volatile global market.” Yesterday, UK Finance revealed there was a sharp increase in mortgage completions in the first quarter of 2025. The post UK Finance calls for action to increase demand for green home upgrades appeared first on Mortgage Strategy.

Foundation Home Loans has launched buy-to-let (BTL) special products for short term lets. The new products include a F1 Special Portfolio Landlord Only five-year fixed rate at 4.39% with an 8% fee. This comes with a loan size of £2m up to 65% loan-to-value (LTV). In addition, the lender has added a F2 Short Term Let Special two-year fixed rate at 6.09% at 75% LTV with a fee of £1,995 and a five-year equivalent at 5.74% at 75% LTV with a 4% fee. Elsewhere, Santander has launched a buy-to-let (BTL) remortgage range and will lower rates by 0.15% on all 60%, 65% and 75% LTV fixes. The lender has also announced that it will withdraw 70% LTV BTL remortgage fixed rates. Due to market conditions, Santander says it has increased lower LTV fixed rates for FTB, home mover, new build and remortgage by up to 0.13%. For product transfers, most BTL 60% to 75% LTV fixed rates have been reduced by up to 0.10%. Meanwhile, Plus residential seven-year fixed rates have increased by up to 0.06%. Earlier today, Clydesdale Bank announced it is hiking rates on a number of products by up to 25 basis points. The post Foundation launches BTL specials, Santander adds BTL remortgage range appeared first on Mortgage Strategy.

Illustration by Dan Murrell My alarm goes off at… …5.50am. I love to get up before everyone else, when the house is quiet and before the hustle and bustle of the morning kicks in. I wanted to work in the finance industry because… …I’ve always really enjoyed the fast pace, which I think stems from my first role in financial services, during the financial crisis (talk about a baptism of fire!). It was then that I got the bug for the adrenaline that comes from needing to think fast and smart to keep pace with change. Marketing should sit at the heart of a strategy, alongside the other functions Within financial services, though, my heart is in mortgages and this has been reaffirmed having spent three years away. Our industry has to be one of the most supportive, friendly and fun there is, alongside a huge desire to be progressive and inclusive…. It’s fab. Lastly, how lucky are we that the service we provide genuinely changes consumers’ lives? Whether it’s helping them to buy their first home or move to grow their family, or just saving them money on a monthly basis with a better deal, it’s humbling to know we have the power to make a difference. Something that has surprised me about my job is… …the culture at L&C is unreal! We have this value of ‘One L&C’, which is about the whole business, no matter the role, being united and working together. It runs through the DNA. It’s critical we get the balance right between volume and adviser capacity to ensure all of the customers getting in touch are answered I can honestly say I’ve never worked anywhere where the drive to make our business better is so evident and the team so aligned on making that happen. A misconception about my role is… …that marketing is just about ‘making things look good or sound nice’ (fellow marketers will share the heart-sinking feeling we get when we’ve been asked to make a Powerpoint presentation ‘pretty’). It’s humbling to know we have the power to make a difference Historically, marketing has been seen as one of the softer, supporting roles, which is brought in to execute initiatives or programmes of work. One of the big pull factors for me at L&C was the recognition that marketing should sit at the heart of a strategy, alongside the other functions. My typical working day entails… …the day always starts with a review of our performance from the previous day and how we’re managing our lead volumes through the business. L&C generates a significant volume of enquiries every day, so it’s critical we get the balance right between volume and adviser capacity to ensure all of the customers getting in touch are answered. Historically, marketing has been seen as one of the softer, supporting roles One of my favourite things about my role is that there isn’t, in fact, a typical day. My remit spans marketing, partnerships and PR, which means that a typical day could include anything from reviewing our PR plans for the upcoming quarter and meeting with our digital agencies to get the latest insight and future trends, to reviewing new campaigns and meeting with our partners. My favourite work memory is… …so far at L&C my favourite work memory is the Winter Parties that were held in Newcastle and Bath in January. We have this value of ‘One L&C’, which is about the whole business, no matter the role, being united and working together It was my first week in the business and to get the chance to meet so many of our colleagues and get a feel for the culture was fantastic. To unwind after work, I… …adopt a healthy balance of running and drinking wine (but never at the same time). This article featured in the May 2025 edition of Mortgage Strategy. If you would like to subscribe to the monthly print or digital magazine, please click here. The post Day in the Life of… Gemma Bacon, head of marketing at L&C Mortgages appeared first on Mortgage Strategy.

The size of the average home has been increasing over the past three decades, with usable floor space rising from 91.39 m² in the 1990s to 96.48 m² in the 2020s, new analysis shows. The increases could reflect home owners adding home offices, loft conversions and extensions to maximise their property’s footprint as house prices have soared. Average property prices have jumped by 349% over the same timeframe from £55,778 in the 1990s to £250,346 in the 2020s, according to broadband and digital services company SmartMove, which carried out the research. This boom in prices followed a sharp increase of 249% over the 1980s alone, when the Thatcher’s government’s Right to Buy scheme put many more people on the housing ladder. Income growth has been steady but slower than house prices. Average weekly income grew from £289 in the 1990s to £772 in the 2020s, while household savings rates fluctuated, dropping during the 2000s and 2010s but rising again this decade. SmartMove moving expert Jes Johnson says: “Housing affordability in the UK is a multifaceted challenge that requires both careful market analysis and proactive policymaking. “The steep rise in house prices during the 1970s and 1980s can be attributed to inflationary pressures and housing policies like Right to Buy, which, while empowering many to own homes, simultaneously tightened supply and increased demand. “Though incomes have risen steadily, they have not kept pace with housing costs, making affordability an issue for many, especially first-time buyers. “The trend of increasing home sizes since the 1990s indicates evolving consumer preferences for more spacious, versatile living spaces, a shift accelerated by remote work demands. “However, land scarcity and planning regulations have tempered this growth somewhat in recent years.” The news comes as UK Finance calls for more action to boost homes’ energy efficiency through green upgrades. The post Average home bigger than 1990s despite cost pressure appeared first on Mortgage Strategy.