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This week’s top stories include Nationwide and Rightmove launching a property lending check, and Knight Frank raising its house price forecast as base rate cuts are expected to support demand. Dive into these and more key updates below.  Nationwide and Rightmove launch property lending check Nationwide and Rightmove launched a digital “property lending check” feature to help homebuyers assess mortgage eligibility before viewing a property. The tool evaluated risks like flooding or short leases, providing real-time lending likelihood. Previously, buyers only knew borrowing amounts, not property-specific eligibility. The initiative aimed to streamline the UK property market, reducing delays. Experts praised the feature for preventing late-stage mortgage rejections. Rightmove planned further enhancements, while Nationwide called it a natural progression from their mortgage-in-principle tool. Knight Frank lifts house price forecast as base rate cuts ‘underpin’ demand Knight Frank raised its UK house price forecast to 3.5% for 2025, up from 2.5%, citing expected base rate cuts as a key demand driver. The Bank of England’s rate reduction to 4.25% and market predictions of further easing boosted market confidence. Halifax reported a 0.3% monthly price rise in April. Rental forecasts also increased slightly due to the tight supply. Knight Frank projected cumulative price growth of 22.8% over five years.    Nationwide latest to adjust stress rates following FCA clarification Nationwide reduced its mortgage stress rates by 0.75 to 1.25 percentage points following FCA guidance allowing lenders to assess affordability against product rates rather than revert rates. The change enabled borrowers, particularly first-time buyers using its Helping Hand scheme, to access higher loans, averaging £28,000 more. However, the Bank of England’s 15% loan-to-income cap limited its impact. Experts praised the move but called for broader regulatory reforms to further ease affordability constraints. Average two-year fix falls to lowest rate since 2022: Moneyfacts The average two-year fixed mortgage rate fell to 5.18% in May 2025—its lowest since September 2022—while five-year fixes dropped to 5.10%. Moneyfacts reported declining swap rates drove cuts, narrowing the gap between short- and long-term deals. Product availability rose to 6,993, the highest since 2007, though shelf-life shortened to 19 days. Experts noted improved options for first-time buyers but cautioned borrowers might still prefer longer fixes amid market volatility. New rules for letting agents come into force tomorrow New rules requiring letting agents to screen all landlords and tenants against UK financial sanctions lists took effect on 14 May 2025. Agents had to verify identities and report matches to authorities, removing the previous €10,000 (£8,275) rent threshold. Non-compliance risked £1 million fines. Goodlord warned that many landlords felt unprepared for the changes, which aimed to prevent sanctioned individuals from renting properties. The mandate applies to instruction for landlords and post-offer for tenants. Perenna renews credit line with ABN AMRO Perenna Bank renewed and expanded its £200 million warehouse credit facility with ABN AMRO, extending the agreement until July 2026. The deal, building on their April 2024 partnership, aimed to support Perenna’s growth in the UK mortgage market. COO Colin Bell stated the funding would enable more lending for innovative products addressing housing affordability. The move reinforced Perenna’s mission to expand homeownership opportunities through flexible financing solutions. Halifax cuts rates, including 2-year fix at sub-4% Halifax reduced mortgage rates on 22 April 2025, introducing a sub-4% two-year fixed rate at 3.94% (60% LTV, £999 fee). The lender also cut five-year fixes to 4.27% (80% LTV, £999 fee) and 4.38% (80% LTV, no fee). Two-year products at 90-95% LTV fell 0.19% to 5.15% (no fee). The reductions made Halifax one of the most competitive lenders in the market for both homebuyers and remortgagers. L&C Mortgages adopts One Mortgage System’s CRM solution London & Country Mortgages implemented One Mortgage System’s CRM solution on 13 May 2025 to streamline operations and enhance customer service. The fully integrated system improved workflow efficiency and data management for the brokerage. OMS CEO Dale Jannels praised L&C’s reputation, while L&C CEO Mark Harrington highlighted the platform’s flexibility in meeting their needs. The partnership aimed to optimise internal processes and elevate customer experiences through technological innovation. Barclays launches lowest rate this year at 3.85%, Principality cuts resi and JBSP rates Barclays launched its lowest 2025 rate at 3.85% on 12 May, cutting multiple products including a fee-free remortgage (4.18%, down 19bps) and green mortgage (4.08%). Principality also reduced residential rates by up to 0.21%, with JBSP cuts including 0.20% on two-year 75% LTV deals. The moves intensified competition as Barclays’ five-year fix fell to 3.99% and Principality trimmed cashback products, signalling a broader market rate decline. Opinion: FCA’s latest CP makes a nonsense of Consumer Duty The FCA’s CP25/11 proposal to remove mandatory mortgage advice requirements risked undermining Consumer Duty principles, argued Sebastian Murphy. The 13 May 2025 opinion piece warned that the change favoured lenders seeking to reduce broker involvement, jeopardising consumer protections. Murphy highlighted advisers’ holistic role in identifying risks like protection gaps or affordability issues, now threatened by execution-only options. Despite recent Consumer Duty emphasis on advice quality, the consultation appeared to prioritise cost savings over suitable outcomes, potentially harming both consumers and the advice sector. The post Mortgage Strategy’s Top 10 Stories: 12 May to 16 May appeared first on Mortgage Strategy.

Inflation is set to jump as a range of index-linked bills and taxes take effect when official cost-of-living data is released next week.   Deutsche Bank forecasts headline inflation will lift to 3.4% in April from 2.6% as energy and water bill rises kick in when the Office for National Statistics posts its print on Wednesday.  This data will also include changes to vehicle excise duty, council tax bills, and air passenger duty, as well as the “double whammy” of rises to the National Living Wage and employer National Insurance Contributions, says the German bank.  Deutsche Bank senior economist Sanjay Raja adds: “April inflation will present the biggest test for the Monetary Policy Committee so far this year”. Goldman Sachs analyst Sven Jari Stehn points out: “UK core inflation continues to run notably ahead of that in other countries, reflecting high services inflation and firm wage growth.”    The US bank estimates UK inflation will come in at 3.5%. The latest cost-of-living data comes after official figures showed earlier this week that the UK economy grew by a larger-than-expected 0.7% in the first three months of the year.  However, this data came before the 2 April move by US President Donald Trump to hike tariffs on more than 75 countries, which is expected to impact UK growth.  Last week, the UK struck a deal with the US to reduce or remove tariffs on some UK exports, but the baseline 10% levy, which applies to many countries, will still be charged on most British goods entering the US.  The Bank of England cut the base rate by a quarter point to 4.25% last week, the second 0.25% reduction of the year and the lowest level since May 2023.    It also lifted its forecast for the UK economy to grow by 1% this year, marking an upgrade from the 0.75% growth predicted in its February report.     However, rate-setters expect that energy prices “are still likely” to drive up inflation to 3.5% in the third quarter of the year, before “falling back thereafter”.      Money markets expect between two and three further cuts this year to boost a subdued economy that faces tariff uncertainties.  But many economists forecast that the Monetary Policy Committee may pause rate reductions at its next 19 June meeting to gauge how hot prices are running across the economy.  The post Inflation preview: Higher April bills lift cost of living   appeared first on Mortgage Strategy.

One in four people in the UK have low financial resilience, according to a new survey from the Financial Conduct Authority. This means they either miss payments, struggle to keep up with financial commitments, or don’t have savings to help them through difficulties. Some 21% of those surveyed have less than £1,000 to draw on in an emergency. The FCA also reveals that 1.6 million adults (3%) had received support from mortgage or credit lenders to assist with repayments in the previous two years – this was 6 million previously. In light of these numbers, the regulator is urging consumers to reach out to their lender if they’re struggling with their payments since lenders have a range of options available to help people under pressure with repayments. As part of its new strategy, the FCA is working to improve people’s access to help, guidance and advice so that everyone can access the support they need, at a cost they can afford, to make informed decisions for their financial future. The FCA pointed out from the data that when consumers sought support it made financial pressures more manageable. Commenting, FCA executive director of consumers and competition Sarah Pritchard said: , “Our data shows that finances are stretched for many – with some unable to save for a rainy day. And we know that some do not have the confidence to invest. But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.” The post One in four have low financial resilience, FCA survey reveals appeared first on Mortgage Strategy.

The number of people enquiring from the United States about homes for sale in the UK is at an eight-year high, Rightmove reveals. The property website’s research shows the number of enquiries from the US about homes for sale in the UK since the start of the year is 19% higher than the start of last year, and the largest since 2017. This includes people both enquiring about relocating to the UK from the US or purchasing a second home or buy-to-let (BTL) property in the UK. Just under half (47%) of people are looking at homes with smaller homes with up to two bedrooms, which suggests investment activity or a second home apartment, rather than a permanent relocation. However, 32% are looking at more mass-market, typical family homes of three to four bedrooms. Rightmove says this trend emerges as uncertainty grows around President Trump’s economic policies, most notably what he may do long-term around international trade tariffs. For these potential US buyers, Scotland has replaced London as the most popular region to enquire about. Over the last 10 years, London has typically seen the biggest proportion of US enquiries, but at the start of this year it has switched to Scotland, potentially due to its lower price point. Of US enquiries, 28% are about homes for sale in Scotland, compared to 26% for London. Research found that Edinburgh has emerged as the most popular destination to enquire about, replacing Westminster which is now in second place, while Glasgow has risen to fourth place, overtaking Kensington and Chelsea. Rightmove property expert Colleen Babcock says: “President Trump’s tariff announcements have led to more economic uncertainty globally, and we’re starting to see some of the effects of this on the UK property market.” “Whether it’s because the UK is seen as a more stable investment opportunity, or whether some buyers are considering a permanent move across the Atlantic, we’re seeing an increase in enquiries from the US.” “While a really interesting trend, it’s important to note that only a very small percentage of all UK enquiries come from the US.” The post US enquiries on UK home sales hit 8-year high: Rightmove appeared first on Mortgage Strategy.

ModaMortgages is now accepting day one remortgages for bridge exit applications across its core and limited edition buy-to-let product ranges. The specialist lender is also now accepting applications for capital raising where the applicant has sufficient equity in an existing property. Landlords can borrow between £25,000 and £2m, with LTVs of up to 80% available.  Earlier this month, ModaMortgages increased the maximum LTV it offers to 80% and added £0 and 3% product fee options to its limited edition range. The announcement comes hot on the heels of the lender boosting its maximum LTV to 80% LTV, as well as adding £0 and 3% product fee options to its limited edition range. Products are available to individual landlords, limited companies, those with small or large portfolios, first-time buyers and first-time landlords.  ModaMortgages group sales director Darrell Walker says: “This could be perfect for landlords who purchased a property via a bridging loan for the purpose of letting it out and have enhanced or improved it which has increased it value and are now looking to exit onto a longer-term buy to let mortgage. It could also be ideal for those who need to raise capital quickly for other purposes, such as purchasing another investment property.” The post ModaMortgages intros day one remortgages for bridge exits appeared first on Mortgage Strategy.

April Mortgages has launched a long-term 100% loan-to-value home loan.   The lender’s No Deposit Mortgage is available at up to 4.49 times income on 10- and 15-year fixed terms.  It comes with no early repayment charges for moving and redeeming or redeeming from the borrower’s own funds.  The product includes uncapped overpayments and an automatic rate reduction as the customer builds equity in the home.  The firm says the loan is, “targeted at buyers with reliable incomes and good credit histories but no access to the widely used ‘Bank of Mum and Dad’”.  April Mortgages director of product James Pagan adds: “Saving for a deposit remains one of the biggest barriers to home ownership, even for those with strong incomes and a solid credit profile. We believe the answer lies not in loosening standards, but in designing products that better reflect the realities of today’s housing market.  “Our new No Deposit Mortgage brings together full credit, and affordability checks with the longer-term certainty of a 10 or 15-year fixed rate.  “It’s a responsible option for borrowers with strong financial track records who are excluded by traditional deposit requirements.  April Mortgages director of mortgage distribution Rachael Hunnisett points out: “The housing market has shifted dramatically. Wage growth struggles to compete with rising house prices, owning a home has become harder to achieve — even for those with steady incomes.   “But having a place to call your own still brings security, stability, and the freedom to build a life — and that shouldn’t feel out of reach.”  The post April Mortgages launches long-term 100% LTV home loan   appeared first on Mortgage Strategy.

Private renters remain under pressure as they spend a third of their wages on housing, a third of them struggle to meet these costs while only just over half have pulled together savings, the latest English Housing Survey shows.   Renters spent the highest proportion of their income on housing, 34% up from 32% last year, according to the 2023 to 2024 report, by the Ministry of Housing, Communities and Local Government, subtitled Experiences of the ‘housing crisis’.  Renters were the most likely to report difficulty affording their housing costs at 32%, against 19% of those with a mortgage.  However, owner occupiers were the most likely to have savings, at 79%, compared to 52% of tenants.  The most common savings amount for owner occupiers was £50,000 or more, with 33% of this group reporting savings of this amount.   By comparison, 32% of private renters most commonly had savings between £5,000 and £15,999.  However, the ambition of private renters to own a home was strong, with 2.6 million of them saying they expect to buy a home in the future, compared to under 1 million social tenants.  The study says: “Younger private and social renters were more likely to expect to buy than older renters, as well as those on higher incomes, those in lone male households and those with dependent children.”  Quilter financial planner Thomas Lambert adds the survey “demonstrates just how many private renters are caught in a state of flux.   “Private renters not only spend the highest proportion of their income on housing, coming in at just over a third, but they are also the most likely to struggle to afford their housing costs and just half have savings behind them.   “Those having difficulty paying rent rose considerably from 27% in 2019-2020 to 32% in 2023-24, which followed the sharp rise in rent costs seen during the cost-of-living crisis and mortgage market turmoil.”  However, the report highlighted a strong pipeline of first-time buyers.  The overall number of FTBs rose from 617,000 households in 2013-14, to 827,000 in 2019-20 and 975,000 in 2023-24.  The majority of FTBs were aged between 25 and 34 years old, 60%, while 21% were aged 35 to 44 years old.  The study points out that 15% of FTBs bought a property in London, compared with 2013-14, when 25% of this group bought a home in the capital. Quilter’s Lambert adds: “Today’s report lays bare just how many people are stuck wanting to take their first step onto the property ladder but are faced with high housing costs and a subsequent inability to save.   “Affordability remains a fundamental constraint, with high house prices, elevated monthly repayments and the need to build a suitable deposit all while needing to maintain current housing commitments.   “The changes to stamp duty have compounded this further, and FTBs now face even greater hurdles.”  The post Tenants struggle to pay rent and save for home: Housing dept  appeared first on Mortgage Strategy.

Ministry of Justice figures reveal that compared to the same quarter in 2024 there were increases in mortgage possession claims from 5,182 to 6,765 (31%), and repossessions by county bailiffs from 769 to 1,092 (42%). Mortgage possession claims rose across all regions Landlord possession orders and repossessions have increased – there were increases in orders from 18,140 to 18,713 (3%), and repossessions from 6,938 to 7,308 (5%). All types of landlord claims remained concentrated in London. However, separate figures for the first quarter released on the same day by UK Finance paint a slightly different picture of the market. These figures indicate that there were 90,140 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the first quarter of 2025, 2% fewer than in the previous quarter. Within the total, there were 30,700 homeowner mortgages in the lightest arrears band. This was 3% fewer than in the previous quarter. Responding to the statistics, Generation Rent chief executive Ben Twomey said: “Everyone needs a secure and affordable home, it’s the foundation of our lives. Evictions cause huge emotional and financial distress for renters, while putting pressure on local councils to pick up the pieces. It’s no wonder the number of people trapped living in temporary accommodation, at huge cost to councils, is at record levels. “It’s right the government will outlaw ‘no fault’ Section 21 evictions through the Renters’ Rights Bill. This change can’t come soon enough.” Debt charity StepChange public policy manager Adam Butler said:“This is an incredibly uncertain time for mortgage holders. While last week the Bank of England cut the base rate by 0.25%, which could provide some relief for borrowers, it’s unlikely it’ll have an immediate, meaningful impact for those who are struggling to keep up with mortgage payments. Although overall mortgage arrears remain low, the rise in possessions raises concerns that those already struggling may be especially at risk of falling into problem debt.” “Last year among our clients with a mortgage, we saw average mortgage arrears jump by a staggering 69% – from £6,054 in 2023 to £10,239 in 2024. At the same time, households are being hit with a fresh wave of cost increases, including higher energy bills, council tax, and water bills, further stretching already tight budgets.” Broadstone senior director risk Richard Pinch pointed out that although mortgage possession claims and orders had increased, these numbers remained below the long-term average. “Meanwhile, the number of people in arrears on their mortgage has again decreased this quarter, suggesting borrowers’ affordability remains stable. “However, the outlook is uncertain and households face near-term economic headwinds. While GDP figures released (15 May) show that the economy performed better than expected in Q1, many economists suggest it may be short lived as tariffs and the government’s hike in national insurance contributions for employers take hold.” The post MoJ reveals 31% increase in mortgage possessions appeared first on Mortgage Strategy.

The Treasury has sold another slice of NatWest shares, taking the taxpayer’s stake in the high street bank to under 1%.  The government took its holding in the lender to 0.90% from 1.98% in a share sale to investors, according to a stock market statement. The taxpayer’s stake in the lender has fallen by more than two-thirds since last December, as Chancellor Rachel Reeves bids to fully exit the holding by 2025-26. The UK is on track to sell its stake in the bank this year. In September, Reeves scrapped the former Conservative administration’s plans to sell the state-owned shares to the general public in high profile TV campaign that would have featured former newsreader Sir Trevor McDonald. Reeves said the discounted public sale would “not represent value for money”. The Treasury’s share sales in the bank hit two milestones last year. In March, the shareholding fell below 30%, meaning the government was no longer classed as a “controlling shareholder” In July, the stake dropped below 20% meaning that by next year, the state will no longer be considered a “related party” – which requires additional transparency around its relationship with the bank. The sale means the government has now recouped more than £20bn from the sale of shares since the state rescued the bank from going bust during the height of the financial crisis in 2008. Taxpayers took an 84% stake in the business at the time after pumping £45.5bn into the lender. The post UK stake in NatWest falls below 1%  appeared first on Mortgage Strategy.

Mortgage Broker Tools (MBT) has launched a vulnerable customer disclosure information service. The new service will provide brokers with an up-to-date, searchable database that outlines how to declare a customer as vulnerable to each lender. The service, designed in response to broker feedback, aims to help intermediaries meet their regulatory obligations and deliver the most appropriate advice to clients with additional needs. It will be available on the MBT platform and updated to reflect changes in lender policy. Research undertaken in November last year by Smart Money People, led by Newcastle for Intermediaries, found that more than 89% of brokers had encountered a vulnerable client in the previous year. However, more than 58% highlighted a lack of clarity around disclosure processes as a major barrier to providing appropriate support. MBT chief executive officer Tanya Toumadji says: “The FCA is very clear on the role that brokers play in identifying and supporting vulnerable customers, whether they are experiencing illness, disability, financial hardship or significant life events.” “However, a recent survey found that lack of clarity when it comes to knowing how to disclose vulnerabilities to lenders is a major hurdle for brokers. “This important piece of industry-wide research, spearheaded by Newcastle for Intermediaries, clearly demonstrated the need for clearer, more accessible information when it comes to disclosing vulnerable customers.” “Our new vulnerable customer disclosure database helps to address this, with clear information on how to declare vulnerabilities to lenders.” “By making this service easy to access, we’re helping brokers meet their obligations and offer tailored advice, without having to second-guess each lender’s process.” In March, the Financial Conduct Authority revealed that only four out of 10 vulnerable customers disclosed their needs to their financial services provider. However, it found that those who do open up tend to have better experiences. The post MBT launches vulnerable customer disclosure information service appeared first on Mortgage Strategy.