Mortgages

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.

Hinckley & Rugby Building Society says it has become the first UK lender to complete a mortgage using PEXA. The transaction took place as part of the testing of PEXA’s sale & purchase proposition ahead of its full launch and wider market roll out later this year. As part of the deal, law firm Muve acted as the conveyancer within the PEXA workspace for both the purchaser and lender. The transaction used PEXA’s payment scheme to enable the settlement of funds from the incoming lender’s account to the seller’s conveyancers verified account with successful lodgment of title with HM Land Registry to complete the transaction. The test transaction did not require the purchaser to introduce additional funds. PEXA UK chief executive officer Joe Pepper says: “Our mission has always been to help transform the property market for the benefit of consumers, lenders and conveyancers. Today’s completion of the UK’s first digital purchase transaction is a landmark achievement in this journey.” “By leveraging our platform and PEXA Pay scheme, we have demonstrated how technology can simplify and expedite what has traditionally been a complex and time-consuming process.” Hinckley & Rugby Building Society head of sales and distribution Laura Sneddon adds: “We are always eager to embrace innovation and work with partners who share our vision for a more efficient and modernised property market.” “PEXA’s fully digital Sale & Purchase platform represents a significant step forward in streamlining the mortgage and completion process, and we are proud to have been the first UK lender to complete a transaction using this ground breaking technology.” In April, PEXA received approval from the FCA to become an authorised payment institution (API). The post PEXA completes full digital home sale with Hinckley & Rugby appeared first on Mortgage Strategy.

Halifax will lift selected fixed-rate residential loans by up to 16 basis points tomorrow, while Market Financial Solutions reduces rates across its bridging range.   The high street lender will raise some two-, three- and five-year remortgage fixes by as much as 16bps, it says in a broker note, without giving further details.  It adds that two- and five-year product transfer and further advance fixes will rise by up to 15bps.  The firm says to secure existing prices, brokers should submit applications in full by 8pm tonight.  Meanwhile, Market Financial Solutions says its residential single bridging fixes are available from 0.70%.   The specialist lender adds that rates across portfolio loans, second charge, light development, semi-commercial, commercial, and development exit products have been cut.  Market Financial Solutions chief executive Paresh Raja says: “The property market has enjoyed a productive first five months of the year, with multiple house price indices showing consistent growth.   “With the Bank of England expected to reduce the base rate further in 2025, we’re preparing for increased demand among investors, so now feels like the right time to cut rates and maintain momentum.”  The post Halifax lifts rates by up to 16bps, Market Financial Solutions reduces loans   appeared first on Mortgage Strategy.

HouzeCheck has appointed Kasia Suchacka as head of finance. Suchacka joins from Redkite Data Intelligence, where she was head of financial control. Previously, she worked at healthcare technology provider RLDatix. In her new role, Suchacka will be responsible for developing and implementing financial strategies as part of the company’s expansion plans. This includes overseeing budgeting, forecasting, and long-term financial planning. She will also act as a strategic adviser to the chief executive and the HouzeCheck board and will lead and mentor the finance team. Suchacka will report to HouzeCheck chief executive officer and founder Amit Bansal. Bansal says: “Kasia is a fantastic addition to our executive team. She is a dynamic and proven strategic leader. Her expertise will be instrumental as we scale our operations, investing in cutting-edge technologies, and continue to deliver unparalleled value to our clients and stakeholders.” HouzeCheck has also appointed Jack Taylor as its new marketing manager. In April, HouzeCheck confirmed it had secured investment from London-based private equity specialist Beach Equity Investments. The post HouzeCheck appoints Suchacka as head of finance appeared first on Mortgage Strategy.

Furness Building Society has promoted Simon Broadley from chief commercial officer to chief executive officer. Broadley was appointed as chief commercial officer in 2022 with a remit to oversee and manage the society’s commercial operations. He has more than 20 years of experience in the financial services sector, predominantly in the mutual sector. Previously, he has held senior leadership roles with Yorkshire Building Society and Tenet & You and was a non-executive director for Leeds City Credit Union where he provided strategic leadership and guidance. Broadley takes the mantle from former CEO Chris Harrison, who leaves the role to take retirement. Harrison led the society for over eight years, having joined from insurance giant, Assurant Europe. Harrison says: “It’s been a privilege to guide Furness for the past eight years and be part of a team of incredibly talented people who have transformed the organisation into a modern-day building society for the future.” “I’m personally delighted that Simon will drive the next phase of development. He will be an excellent leader for our people and will ensure a positive outlook for our members and communities.” Broadley adds: “I’m very proud to take the position of CEO at Furness Building Society, having been part of the leadership team for nearly three years. During this time we’ve continued to evolve as a building society that always puts people first, which is reflected in our approach to mortgage underwriting and means we’ve helped countless people secure mortgages when other lenders were unable to do so.” “Working with Chris Harrison has been the best grounding to succeed him as CEO, and I wish him well in his retirement.” Last month, the society announced the appointment of Helen Thistlethwaite as business development manager within the intermediaries mortgage team. The post Furness BS appoints Broadley as CEO appeared first on Mortgage Strategy.

Redwood Bank has appointed Stuart Davidson as its new chief commercial officer. Davidson, who joined Redwood in 2018, just months after its launch, has more than 35 years of financial services experience. He spent two decades in senior roles at Lloyds Banking Group before holding roles across a number of challenger banks. At Redwood, he was most recently director of products and strategy. As CCO, Davidson will lead efforts to expand the specialist bank’s lending book and evolve its overall product proposition. He takes on the CCO role at a time when professional landlords are seeking surety from lenders to expand and diversify portfolios and business savers are navigating changes in interest rates. Davidson commented: “The past few years have been marked by changes in regulation, economic instability and frequent base rate changes. “These factors have made planning more difficult across the sector, particularly for business banks. But they’ve also reinforced the importance of agility, strong partnerships and staying close to the needs of our brokers and customers.” The post Redwood Bank appoints Davidson as CCO appeared first on Mortgage Strategy.

Clydesdale Bank and Virgin Money have become the latest lenders to ease their home loan stress rates, allowing customers to borrow around an extra £40,000.   The banks say the new rules apply to variable or fixed-rate residential mortgages for terms under five years. They explain that a typical example of joint borrowers with a combined income of £85,000, can expect to see their maximum borrowing rise to up to £40,000.   The group adds that for higher earning borrowers — for which Clydesdale Bank is more suited — “the increase in maximum borrowing can be proportionately higher”.  Earlier this month, Barclays relaxed its affordability calculations which it said on average would allow customers to borrow almost £31,000 more. Nationwide, NatWest, Lloyds Banking Group, Santander, Hodge and Accord Mortgages are among several lenders that have eased their stress tests to allow more borrowing in recent weeks. The moves from these firms come after the Financial Conduct Authority said in March that lenders have been “too cautious” in granting FTB home loans under current rules.  Financial Conduct Authority chief executive Nikhil Rathi told the Treasury Committee that under existing regulatory rules lenders have a degree of “flexibility” over the stress tests they apply to homebuyers coming to the market for the first time, which they have not exercised.  John Charcol mortgage technical manager Nicholas Mendes says: “Banks are allowing borrowers to stretch their finances further because the regulatory environment has shifted.  “In response, many lenders have adjusted their stress testing, meaning borrowers can now access larger loans based on their actual affordability rather than artificially inflated scenarios.   “For some, particularly first-time buyers with stable incomes, this could be the change that allows them to finally get on the housing ladder.”  But Mendes adds: “The Bank of England’s long-standing cap on high loan-to-income lending – the 15% rule – remains in place. Introduced over a decade ago to limit systemic risk in the wake of the financial crisis, it now sits awkwardly alongside stricter stress testing and more robust capital requirements.   “As a result, there’s a tension — while more borrowers now qualify under the updated affordability criteria, lenders are constrained in how many of those loans they can actually issue.”  “Will it lead to more completions among first-time buyers? Likely, yes. But there may also be broader market consequences, including upward pressure on house prices, particularly in already supply-constrained areas.”      The post Virgin and Clydesdale latest lenders to ease stress tests   appeared first on Mortgage Strategy.

Mortgage Strategy’s Top 10 Stories of the Week This week’s standout stories include the FCA’s plans to update thousands of directions affecting over 9,000 firms, and a warning from CTM that nearly half a million homeowners could face a rise in monthly mortgage payments in 2025. Discover these and other key developments below.  FCA to update thousands of directions to over 9,000 firms The Financial Conduct Authority updated around 11,000 requirements, directions or limitations for over 9,000 firms after finding some data was outdated, superseded or contained errors. The regulator clarified these were obligations for firms to act or cease activities, such as restricting new customers or retaining assets. Minor amendments were made automatically, while substantive changes required direct contact. Firms needed no action unless contacted. The updates occurred over several months. Almost half a million homeowners face monthly mortgage rate jump in 2025: CTM Nearly 500,000 homeowners faced steep mortgage payment rises in 2025 as their five-year fixed-rate deals (averaging 2.11%) ended. Switching to lenders’ standard variable rates (7.13%) would cost an extra £510 monthly. Compare the Market found switching to new fixed-rate deals (4.33%-4.60%) could save up to £3,618 annually. Experts urged homeowners to shop around early, warning that delaying risked higher SVR costs amid market uncertainty. FCA encourages lenders to ‘rebalance’ mortgage risk The FCA urged lenders to reassess mortgage risk by considering savings and later-life home equity to improve access for creditworthy borrowers. Speaking at a UK Finance event, Emad Aladhal noted stretched affordability, with many repaying mortgages into retirement. Major banks had already adjusted lending rules after FCA stress test flexibility calls. The regulator promised a June review on risk appetite, innovation, and later-life lending, questioning if housing wealth could be better utilised while ensuring responsible lending. New bricklayers and carpenters lead £3bn apprenticeship plan The government allocated £3bn to fund 120,000 new apprenticeships, prioritising bricklayers, carpenters and healthcare workers to address skills shortages. The plan aimed to support Labour’s pledge to build 1.5 million homes, including £14m for local construction training and £100m for skills bootcamps. Education Secretary Bridget Phillipson urged young people to seize the opportunities. Funding was partly covered by a 32% rise in the Immigration Skills Charge to reduce reliance on foreign labour. Gable Mortgages launches 0% deposit five-year deals Gable Mortgages launched two 0% deposit five-year fixed-rate deals (5.65%-5.95%) for first-time and next-time buyers, targeting renters struggling to save. Loans ranged from £125,000 to £1m, with higher income multiples for key workers. This followed April Mortgages’ recent 100% LTV product. Experts noted such deals help creditworthy renters but warned of risks from negative equity. Increased lender competition may expand low-deposit options, supporting buyers amid high living costs. Former Trussle digital mortgage broker snapped up by OneDome: Report OneDome acquired digital mortgage broker Better.co.uk (formerly Trussle) from US-based Better Home & Finance for an undisclosed sum. Founded in 2015, Trussle had raised £30m before its 2021 discounted sale. OneDome CEO Babek Ismayil said the deal aligned with their all-in-one homebuying platform vision. The purchase follows OneDome’s recent acquisitions, including Coreco Group, expanding its annual mortgage lending to £3.5bn and workforce to 230. Barclays increases rates on purchase and remortgage products Barclays raised rates on selected purchase and remortgage products by 0.10%-0.15%, effective from 30 May. Key increases included its 95% LTV two-year fixed (now 5.05%) and five-year fixed (4.99%), alongside premier products at 60-85% LTV. However, it reduced its 85% LTV tracker rate to 4.98%. The changes followed Barclays’ earlier relaxation of affordability rules, allowing borrowers £30,000 more. Loan limits ranged from £25,000 to £2m depending on product. Housebuilders face forced land sales if they fail to build homes The government introduced measures forcing housebuilders to meet construction deadlines or face land seizures and fines. Developers now had to submit annual progress reports and commit to timelines before receiving planning permission. Those hoarding land risked ‘Delayed Homes Penalties’ or compulsory council purchases. The policy aimed to accelerate delivery of 1.5 million homes, with Deputy PM Angela Rayner criticising years of stalled developments. Large sites with 40% affordable housing were found to build twice as fast. L&C Mortgages achieves B Corp certification L&C Mortgages secured B Corp certification after scoring 87.4 in its first assessment, exceeding the 80-point threshold. The accreditation recognised the broker’s commitment to governance, workers, community, environment and customers. CEO Mark Harrington called it a “proud moment” reflecting their focus on people and planet. The achievement followed L&C’s recent adoption of One Mortgage System’s CRM platform, marking the start of its ongoing sustainability improvements. Unexpected costs hitting FTBs hard: Smoove Two-thirds of recent UK homebuyers faced unexpected costs during purchases, with first-time buyers (66%) hardest hit, Smoove’s research revealed. Renovations, legal fees and stamp duty were the most common surprise expenses, causing frustration for 27% of buyers. While conveyancing costs rose 17% to £1.9bn in 2024, these weren’t the main concern. Smoove called for better upfront education about hidden costs to reduce transaction stress and improve market fluidity. The post Mortgage Strategy’s Top 10 Stories: 26 May to 30 May appeared first on Mortgage Strategy.