This week’s top stories: Halifax eases rules on bonuses and overtime and almost half of landlords plan to raise rents before Renters’ Rights Bill. Explore these developments and more: MPC members explains May split decision The Bank of England’s Monetary Policy Committee rejected suggestions of ‘group think’ or factional voting patterns, despite apparent alignments among some members. Governor Andrew Bailey and members like Catherine Mann emphasised that differing views stemmed from individual interpretations of data. The recent 5-2-2 vote to cut interest rates highlighted this, with some pushing for a larger reduction due to weak consumption and global pressures, while others, like Mann, opted to hold rates citing persistent inflation risks and resilient labour market conditions. All agreed inflation was falling, though the timing for reaching the 2% target remains uncertain. Foundation launches BTL specials, Santander adds BTL remortgage range Foundation Home Loans has introduced new buy-to-let products for short-term lets, including a five-year fixed rate at 4.39% with an 8% fee for portfolio landlords and various F2 fixed options up to 75% LTV. Meanwhile, Santander has launched a new BTL remortgage range, cutting rates by up to 0.15% on selected LTV bands but withdrawing 70% LTV BTL remortgage products and increasing some lower LTV residential rates. Product transfer rates have also seen modest reductions, while Plus seven-year fixes and Clydesdale Bank rates are set to rise slightly. Halifax eases rules on bonuses and overtime Halifax has relaxed its lending criteria by easing how bonus income and NHS overtime are assessed, helping borrowers—particularly NHS staff—boost their affordability. Now, bonuses from previous employers can count towards the two-year average, and additional NHS overtime under the Waiting List Initiative and Additional Programme Activity schemes can be included. This marks a shift from the previous policy where past bonuses from different employers were excluded. Halifax also recently raised rates on several mortgage products. FCA to draw up AI guidelines for financial services firms The Financial Conduct Authority (FCA) and the Information Commissioner’s Office (ICO) will create a statutory code of practice to guide financial firms in responsibly developing and deploying AI and automated decision-making, aiming to balance innovation with privacy. In a joint statement, leaders from both bodies emphasised that regulation, rather than hindering innovation, can enable it by building public trust and giving firms confidence to invest. The move follows industry feedback requesting clearer guidance and greater engagement. Support initiatives like the FCA’s AI Lab, Digital Sandbox, and ICO’s Innovation Services will also be expanded and better promoted. Halifax lifts rates by up to 16bps, Market Financial Solutions reduces loans Halifax is set to increase selected fixed-rate residential loans by up to 16 basis points from tomorrow, affecting two-, three-, and five-year remortgage, product transfer, and further advance deals. Brokers must submit full applications by 8pm today to lock in current rates. Meanwhile, Market Financial Solutions has cut rates across its bridging loan range, with residential single bridging fixes starting from 0.70%, anticipating greater investor activity amid expectations of a base rate cut in 2025. Almost half of landlords plan to raise rents before Renters’ Rights Bill Nearly half (44%) of UK buy-to-let landlords plan to raise rents in response to the proposed Renters’ Rights Bill, according to a Landbay survey. Landlords with medium-sized portfolios are most likely to act, with properties in the South East and North West facing the biggest impact. Planned rent increases average 6%, or £74 per month—well above current inflation. The changes reflect landlord concerns over the bill’s restrictions, particularly the end of Section 21 evictions, prompting many to act pre-emptively to protect their income. Landbay warns these moves may worsen the cost-of-living pressures faced by renters. Virgin and Clydesdale latest lenders to ease stress tests Clydesdale Bank and Virgin Money have joined a growing list of lenders easing mortgage stress tests, enabling borrowers—particularly joint applicants earning £85,000—to access up to £40,000 more. The relaxed criteria apply to variable and fixed-rate deals under five years and reflect a wider industry shift after the FCA criticised lenders for being overly cautious, especially with first-time buyers. Similar moves from Barclays, Nationwide, and others signal increased flexibility, though constraints like the Bank of England’s loan-to-income cap remain. Experts suggest this could boost first-time buyer activity but may also fuel house price growth in tight markets. Court rules against OSB over ‘undue influence’ in joint mortgage The UK Supreme Court has ruled against One Savings Bank in a landmark case involving borrower Catherine Waller-Edwards, finding the lender failed to ensure she was not under undue influence from her ex-partner when remortgaging their home. The judgment broadens the application of the Etridge Protocol, which requires lenders to ensure independent legal advice is obtained in potentially coercive situations. Legal experts say this ruling now extends to joint loans where funds benefit only one party. Lenders—and possibly brokers—must now conduct stricter checks, raising questions over broader regulatory implications for the mortgage industry. Nationwide trims prices by up to 12bps, rates start from 3.90% Nationwide is cutting fixed mortgage rates by up to 0.12% on two-, three-, and five-year products for new buyers, home movers, and remortgage customers, with rates starting from 3.90%. Key reductions include a two-year fix at 60% LTV dropping to 3.90% for home movers and 3.92% for remortgages. This move follows Nationwide’s recent easing of affordability stress tests and contrasts with many lenders raising rates, offering some relief to borrowers. Sally Mitchell joins Versed Financial as consultant Versed Financial has appointed broadcaster Sally Mitchell as a mortgage and protection consultant. Known for her clear and accessible commentary on the mortgage market, Mitchell brings valuable experience to the firm. Versed’s co-founders praised her personalised approach, highlighting the appointment as a sign of their growing reputation. Mitchell expressed enthusiasm for helping clients navigate financial matters with tailored advice. The post Mortgage Strategy’s Top 10 Stories: 02 Jun to 06 Jun appeared first on Mortgage Strategy.
