Mortgages

The Financial Conduct Authority challenged lenders to “rebalance” how they view risk by looking at savings when weighing up mortgages and unlocking the later life home wealth market.   FCA director of retail banking Emad Aladhal said that although the mortgage market is “resilient,” it has become an area “that some creditworthy people can struggle to access”.  Aladhal’s comments came at the UK Finance annual mortgage Lunch in London yesterday, ahead of a speech by UK Finance chief executive David Postings.  The regulator said: “Affordability has been stretched, with increasing numbers of consumers borrowing for longer, and many projected to be repaying their mortgage into later life.   “In the years to come, holding mortgage debt into retirement will no longer be a niche, but increasingly the norm.   “Has safety come at the expense of access to creditworthy borrowers? Has the right balance been struck?”  “And if the market was to adapt its risk appetite – to widen access further – how could we do so without compromising the overarching principle to lend responsibly?”  The watchdog has promised its second summer review in June will be a wide-ranging paper “on the future of the mortgage market and conduct regulation”.      The FCA has said the review will cover:  the market’s collective appetite for risk, and how we might approach managing changes to risk appetite   how we can create space for innovation, for example, through changes to affordability assessments   how customers are supported to access the market and make the right choices, for example, through changes to our disclosure requirements  how we ensure we are all prepared for an increase in demand for later life lending  Yesterday, Aladhal asked lenders to consider “how to assess affordability and default risk in ways that could support more customers gaining access to lending.  He added: “How could a customer’s savings track record – either through cash savings, ISAs or their pension – form part of their risk profile when applying for a mortgage?”  The regulator also urged lenders to take a fresh look at the equity release market.  He pointed out: “Housing is a significant store of value: there is around £9.1tn embodied in this country’s housing stock – and for the current cohort of retirees, outright ownership is the fastest growing tenure.   “Should we be prepared to support more older homeowners to access their housing wealth?  “Importantly, where a mortgage of some kind is the right option in later life – how could it be made more attractive and offer greater value?”  Aladhal added: “We are already listening and considering carefully where to target our efforts to deliver a more innovative and accessible market.” The post FCA encourages lenders to ‘rebalance’ mortgage risk   appeared first on Mortgage Strategy.

The Land Registry has begun to share data with law firms in a bid to cut down on the 800,000 incomplete applications it receives a year.   The agency says faulty applications cost the sector up to £19m a year and slow down registrations.  These mistakes range from wrong names or title numbers on applications, to missing evidence and incorrect ownership details.  However, the body says when looked at firm by firm, the percentage of applications with avoidable mistakes varies from 0% to 24%, and will now target firms that make the highest number of mistakes, that require follow-up requests, or requisitions.  It says: “HM Land Registry is now sending data to customers on the percentage of their applications where these requisitions could be avoided before the application is submitted.”     It adds: “The aim is for registrations to be processed first time, without the need for clarification or further information to support the application.”  The body says that, based on average pay levels in the sector, “avoidable” clerical errors cost around £5 each, while chasing third parties for a document or consent costs £30.  The Council for Licensed Conveyancers chief executive Sheila Kumar adds: “Many conveyancing practices are doing a great job and we have seen others make recent progress too, so we know there is scope for practices that are not performing as well to improve.   “We are already using data from the Land Registry as part of our risk profiling of individual practices and we expect conveyancers to make use of this data and the training available from the Land Registry to improve their services.”  The Land Registry adds that it already offers free live and self-service training “on how to get applications right first time and has trained 5,000 people in law firms over the past six months”.  In February, the agency said it would introduce digital checks to cut back on simple application mistakes, which will save the department an estimated 300,000 hours a year by 2028.  Also, on 4 February, housing minister Matthew Pennycook wrote to Land Registry chief executive and chief land registrar Simon Hayes, saying that he expected the agency to “digitalise and modernise its systems and services.” The minister added that more broadly he expected the body to “digitalise and improve the home buying and selling process,” in line with the government’s target of building 1.5 million homes over the next five years.  The post Land Registry to share data with law firms to cut conveyancing errors   appeared first on Mortgage Strategy.

Fixed rate mortgage cuts continue to be the general choice among lenders this week, but as Moneyfacts spokesperson Caitlyn Eastell observes, the momentum has cooled a little on previous weeks. Week-on-week, the reductions pushed the average two- and five-year fixed rates marginally lower to 5.10% and 5.07%, respectively. The major brands to reduce selected fixed rates this week included TSB by up to 0.10%, Lloyds Bank by up to 0.09%, Halifax by up to 0.09%, Barclays Mortgage by up to 0.49%, Santander by up to 0.19%, and HSBC by up to 0.21%. However, Lloyds Banks and Halifax also moved to increase rates by up to 0.14%. Building societies made a few rate moves this week, those to cut included Yorkshire Building Society by up to 0.44%, West Brom Building Society by up to 0.23%, Principality Building Society by 0.01%, Vernon Building Society by up to 0.11%, Suffolk Building Society by up to 0.24%, Newcastle Building Society by up to 0.40% and Leek Building Society by up to 0.15%. A few non-mutual lenders moved to reduce rates such as The Mortgage Lender by up to 0.35%, Bluestone Mortgages by up to 0.25%, Atom Bank by up to 0.15%. However there were rate rises too –  Nationwide Building Society increased by up to 0.25%, Leeds Building Society by 0.10%, Yorkshire Building Society by up to 0.10%, Principality Building Society by up to 0.12%, Leeds Building Society by up to 0.10%, Loughborough Building Society by up to 0.30% and Vernon Building Society by up to 0.20%. According to Eastell, one of the eye-catching deals to hit the market this week was a two-year fixed rate deal from HSBC, priced at 4.81% and available at 95% loan-to-value for home buyers. “It includes a free valuation and £500 cashback, adding to its appeal there is also no product fee making this an ideal option for borrowers with smaller deposits and are looking to save on the upfront cost of their mortgage.” Commenting on the current market, she added: “It is promising to see the rate cutting trend continue this week and it will likely please both existing and prospective borrowers, as they may start seeing improvements to their monthly repayments after they secure the most competitive deals. “However, with inflation hitting its highest level in over a year it could be that the Bank of England holds off on any further base rate cuts to get inflation back under control and closer to their 2% target.” The post Fixed rate cut momentum calms: Moneyfacts appeared first on Mortgage Strategy.

West Brom Building Society has made rate reductions across its three-year fixed mortgage range, with cuts of up to 0.23%. The society has lowered its 95% loan-to-value (LTV) three-year fix with no fee by 0.23% to 5.08% while the 95% LTV three-year fix with a £499 fee has been reduced by 0.22% to 4.98%. The 90% LTV three-year fix with a £999 fee has been cut by 0.22% to 4.67% and the 90% LTV three-year fix with no fee has gone down by 0.22% to 4.88%. The society has also extended end dates, which will now run until September. The changes apply to products targeted to support first-time buyers and movers with lower deposits. In addition, the society is launching a three-year fixed rate product at 95% LTV specifically for new build homes, priced at 5.12% with a £499 fee. West Brom Building Society head of product Gareth Madeley says: “We’re happy to be reducing rates on our 3-year fixed range to support more customers into ownership. Supporting borrowers with smaller deposits is a key priority for us, especially in today’s challenging market, where affordability remains a key concern.” Last month, the West Brom lowered rates on two-year shared ownership and new build mortgage products. The post West Brom BS cuts three-year fixes by up to 0.23% appeared first on Mortgage Strategy.

The London rental market continues to display signs of resilience, according to the latest Foxtons Lettings Market Report. Property supply has expanded, easing concerns over landlord attrition, while pressure in historically overheated regions is beginning to ease. There was a 5% increase in market supply of new instructions in April 2025, which drove the total increase in market supply of new instructions year to date at 9%. With regards to demand, April saw a 3% month-on-month reduction in applicant registrations, which goes against the trend usually seen at this time of year. Average rental prices have edged upwards, suggesting landlords are cautiously rebuilding yields in response to previous margin compression The average rent achieved in April 2025 increased by 3% to stand at £589 per week. Commenting on the latest figures Foxtons managing director of lettings Gareth Atkins said: “April’s market data presents a unique challenge: a 5% rise in new instructions alongside a 3% decline in applicant demand. While these shifts aren’t dramatic, they further highlight the contrast between today’s environment and the much busier summer market of two years ago.” Earlier this week ONS reported that private rents had risen by 7.4% on average in May to £1,335 a month, from a year ago. The post London rental market holding up: Foxtons appeared first on Mortgage Strategy.

Some 10,000 firms will find it easier to submit customer complaints data under new reporting proposals, the Financial Conduct Authority says.   The City watchdog plans to “consolidate five current returns into one,” which it adds will also” improve the quality of the data we receive, helping us identify potential harm to consumers faster”.  It adds that it intends to standardise the number of times it asks regulated firms to send data returns so that the timing of the body’s requests is more predictable.   This will help firms to plan more effectively, as well as helping the regulator process the information more consistently, it contends.  Simplify Consulting lead consultant Dom House says the move by the regulator “represents a step forward for complaints processes”. House points out: “Simplification of complaints reporting should help firms who are currently completing multiple returns to reduce the burden of collation and submission, and should reduce the risk of mis-reporting. “In addition, and perhaps the biggest improvement in how complaints are viewed across the industry is that this will enable complaints data to be processed more efficiently by the FCA. “As data becomes more important across the industry, and at the FCA itself, improvements to the quality and availability of the data should enable firms to make better and smarter comparisons with where they sit within the market and against their peers.  “With the evolution of Consumer Duty more and more firms will be looking at this data to identify where their areas of focus should be.” FCA executive director for supervision, policy, competition and international Sarah Pritchard adds: “Streamlining the complaints data reporting process will ease unnecessary burdens on firms and strengthen our commitment to smarter, more effective regulation.   “These proposals will also help us collect better quality data on complaints received by firms which will help us spot and respond more quickly to harm as it arises.”  The FCA will accept feedback on the proposals in its consultation paper, CP25/13: Improving the complaints reporting process, until 24 July.  The watchdog has made several changes and launched a series of consultations since, Prime Minister Keir Starmer and Chancellor Rachel Reeves wrote to a range of regulators last November, asking them to loosen rules that will allow economic growth, particularly within the UK’s financial sector. The post FCA plans to ease customer complaints reporting for 10,000 firms    appeared first on Mortgage Strategy.

Inheritance tax receipts hit £0.8bn in April, up £97m on the same period a year ago, HMRC data shows.   The tax body says rises in the tax since March 2022 are due to a combination of more wealth transfers following “recent liable deaths”, rising property prices, and freezes on tax-free thresholds.  Inheritance tax is set to hit a record £9.1bn in 2025/26, according to the last Office for Budget Responsibility forecast made at the Spring Statement, with this figure set to rise to more than £14bn by the end of the decade.  Inheritance tax is not liable on estates worth less than £325,000, but after this, the standard rate above this threshold is 40%, although there are exemptions and reliefs for businesses and gifting.  Just Group director Stephen Lowe says: “The Treasury has enjoyed four years on the trot of record inheritance tax receipts and this April’s figures show a rapid start to 2025/26 with the tax raising over three-quarters of a billion pounds this month alone.”  Quilter tax and financial planning expert Shaun Moore adds: “Inheritance tax receipts for April stood at £0.8bn, which is £97m higher than last year, continuing the steady upward trend seen over recent years.   “With property prices remaining high and nil-rate bands still frozen until 2030, more families are being caught by inheritance tax, many without realising until it’s too late. “Upcoming changes to business and agricultural relief from 2026, and the inclusion of unused pensions in estates from 2027, mean this trend is unlikely to reverse any time soon.   “For those who are worried about inheritance tax, gifting remains the best defence against it, but this should be weighed against your own needs.” The post IHT levies hit £0.8bn in April: HMRC   appeared first on Mortgage Strategy.

House buyers paid £1.3bn in Stamp Duty in April, a £102m decrease from March, according to the latest HMRC data. April was the first month since the nil-rate thresholds dropped from £250,000 to £125,000. However, April was still the second highest month for stamp duty receipts this year, with buyers paying £848m and £1.1bn in January and February respectively. With the nil-rate threshold now halved, individual tax bills have climbed – with the bill on average priced home rising from £2,282 to £4,782. The current thresholds are equivalent to those introduced in 2014, when the average home in England cost £191,986. House prices have risen by more than 50% since then, but thresholds have stayed frozen – meaning far more buyers are going to be dragged into higher tax bands. In total, so far this year homebuyers have paid £4.6bn in property tax. Commenting on the latest figures, Coventry Building Society  head of intermediary relationships Jonathan Stinton said: “March saw a rush of buyers racing to complete before the threshold changes, yet in April buyers still paid a staggering amount in property tax. “Some of this could be from a lag of payments, but it also shows how much buyers are being squeezed, which brings a worry of long-term strain on the market.” He added: “When you’re juggling deposits, legal fees and moving costs, adding thousands of pounds in tax can push a move out of reach. It risks freezing people out of the market altogether – especially in higher priced areas where even modest homes now carry a hefty tax bill. “For many, moving isn’t just about a new address – it’s tied to bigger life steps like starting a family, downsizing in retirement or getting closer to schools and support networks. When those plans get delayed, it doesn’t just affect individuals – it risks the whole market slowing down.” The post April stamp duty receipts down on previous month: HMRC appeared first on Mortgage Strategy.

Valouran has grown its senior team with the appointments of Richard Shaw, Richard Luffingham, Derek Mackenzie, Dani Charleson-Gallacher and Sarah Campbell. Shaw joins as managing director, head of development and brings with him more than 35 years of experience in the residential and commercial property sectors. In his new role, Shaw will be overseeing the company’s development portfolio. Luffingham has been brought in to take on the role of development director, with previous experience in residential and mixed-use development. He will help to drive planning, placemaking, development and construction across Volouran’s project pipeline. Meanwhile, MacKenzie will take on the position of commercial director and brings with him over 25 years of experience in quantity surveying and commercial management. MacKenzie will be responsible for commercial management and cost-control of large-scale redevelopment projects. Appointed as senior design manager, Charleson-Gallacher joins after almost 20 years at Merlin Entertainments as head of projects. Her previous hospitality design will help in overseeing the same aspects across Valouran’s hotel portfolio. Finally, Campbell has been named marketing director with brings with her a decade of strategic marketing experience across multiple sectors. In her new position, she will lead the company’s strategic marketing direction, overseeing media planning and multi-channel marketing campaigns to strengthen the company’s market presence. Valouran co-founder Matthew Robertson says: “Having launched Valouran in 2023, we have now reached a pivotal juncture, with a growing pipeline of projects, that requires us to expand our best-in-class team.” “We are honoured to welcome such a talented group of individuals. Their expertise in successfully delivering landmark projects gives us every confidence that they will uphold the calibre and high standard of work that we deliver at Valouran.” The post Valouran expands senior team with five appointments appeared first on Mortgage Strategy.

Mortgage Advice Bureau said that home loan completions were “particularly strong” in the first three months of the year, while it grew adviser numbers by 3% at the start at 2025. “Mortgage completions were particularly strong in the first quarter, boosted by the pull-forward of some property transactions ahead of the 31 March 2025 changes to stamp duty relief,” said the broker network’s chair Mike Jones at its annual meeting.  Jones added: “Purchase activity remains stronger year on year, underpinned by improving buyer affordability and an increased supply of new properties coming onto the market.   “If mortgage rates remain stable or decline further, we expect purchase activity in 2025 to continue to outperform 2024.  “Refinancing is expected to accelerate in the second half of 2025 and into 2026, as a significant number of five-year fixed mortgages from the post-pandemic boom, and two-year fixed deals taken out following the 2022 mini-Budget reach maturity.”  The network said its number of mainstream advisers at 16 May had grown 3% since the end of the year to 2,003.   It pointed out that as the housing and mortgage markets show signs of recovery, “we are seeing increased confidence among appointed representatives, with more advisers joining and momentum in newly appointed representative firm recruitment”.    Jones added: “The increased mortgage activity seen through the latter part of 2024 has continued into 2025. The cost of borrowing and mortgage rates have continued to decline from recent highs, with further cuts to the Bank of England’s base rate expected this year.”  The Bank has made two quarter-point reductions this year, bringing the base rate to 4.25%.  Money markets are currently betting on just one further cut this year after higher-than-expected inflation coming in at 3.5% today.  The post MAB says completions ‘strong’ in Q1, advisers rise 3%      appeared first on Mortgage Strategy.