Mortgages

HSBC has cut rates on its residential, buy-to-let (BTL) and international mortgage ranges. The lender says it now has the most rates under 4% since 2022. The two year fixed rate at 60% loan-to-value (LTV) has been lowered to 3.84% for remortgages and for premier customers the 60% LTV with a fee of £999 is 3.81%. The bank’s lowest purchase rate is 3.83% for premier customers and 3.86% for non-premier customers. This is on a two-year at 60% LTV with a fee of £999 and has been lowered by 0.05%. For premier customers the lowest remortgage rate is 3.81% and for non-premier customers is 3.84%. This is based on a two-year at 60% LTV with a fee of £999. The lowest switcher rate sits at 3.74% for two- and five-year rates at 60% LTV with a fee of £999 for premier customers. The equivalent for non-premier customers is 3.79%. In addition, BTL rates have been reduced by up to 0.25% and international mortgages have been cut by up to 0.09%. The lowest BTL rate is at 3.74%, based on a two-year at 60% LTV with a fee of £3,999 fee or 3.99%, based on a two-year at 60% LTV with a fee of £1,999. Meanwhile, the lowest international mortgage for premier customers is 4.23%, based on a two-year at 60% LTV and a fee of £999, while the equivalent mortgage for non-premier customers is 4.26%. Earlier this month, HSBC announced rate cuts of up to 0.25% on specific mortgages.  The post HSBC trims prices on resi, BTL and international mortgage rates appeared first on Mortgage Strategy.

Halifax has announced changes to its product range with effect from 20 May. The changes include, for remortgage products with £1,999 product fee, the rate will increase by 0.18% on two-year fixed rate 0-60% loan to value product; and a rate increase of 0.06% on two year fixed rate 0-75% loan to value product; and also a rate increase of 0.15% on five-year fixed rate 0–60% and 0–75% loan to value products To secure existing product codes, applications must be submitted in full by 8pm on 19 May. Earlier this month the Halifax HPI pointed to a stronger market. The post Halifax changes rates on remo products appeared first on Mortgage Strategy.

Guest night stays in short-term lets booked through online platforms such as Airbnb topped 90 million last year, data from the Office for National Statistics shows.   The government numbers office says rentals, for apartments or rooms, booked through sites such as Airbnb, Booking.com and Expedia Group, hit 90.1 million in 2024.  Across the UK, England hosted 70.3 million stays, or 78% of the total, Scotland hosted 11.4 million stays, 12.7%, Wales hosted 6.3 million stays, 6.9% and Northern Ireland played home to 2.2 million stays, 2.4%.  By local authority, Westminster totalled the highest number of guest nights with 3.9 million nights, followed by Cornwall with 3.4 million nights, Edinburgh with 3 million nights and the Highlands with 2.6 million nights.  The average number of nights stayed in Westminster and Cornwall was four days, compared to 3.1 days in Edinburgh and 2.9 days in the Highlands.  The numbers office points out: “Guest nights were not evenly distributed within areas.   “For instance, Hammersmith and Fulham had 899,610 guest nights in short-term lets in 2024, compared with 154,690 in neighbouring Richmond upon Thames.   “In Wales, which had 6,256,930 guest nights in 2024, 1,156,590 were in Gwynedd; next-door Ceredigion had 353,850.”  August was the most popular month for guest nights spent in the UK, notching up 12.8 million nights, 3.5 times higher than the lowest month, January with 3.7 million nights. The post Platform short-term stays top 90 million nights in 2024: ONS   appeared first on Mortgage Strategy.

Santander UK has confirmed mortgage rate reductions of up to 0.19%, introducing further sub-4% loans, to more than 60 products with effect from 20 May. The rate cuts apply to products across its home mover, first time buyer, remortgage and buy-to-let ranges. Rate examples include for home movers – 60% LTV two-year fixed rate, £999 fee, rate reduced by 0.09% to 3.80% and 90% LTV five-year fixed rate, £0 fee and £250 cashback, rate reduced by 0.13% to 4.49%. For first-time buyers –   60% LTV two-year fixed rate with a £0 fee, rate reduced by 0.05% to 4.13%; and 85% LTV two-year fixed rate with a £0 fee and £250 cashback, rate reduced by 0.11% to 4.47% – currently top of market1 For remortgage –  60% LTV two-year fixed rate with a £0 fee, rate reduced by 0.19% to 4.13%;  and 75% LTV five-year fixed rate with a £999 fee, rate reduced by 0.09% to 3.98% These cuts follow reduction announced earlier today by Virgin and TSB. The post Santander to offer more sub-4% loans among 60 rate cuts appeared first on Mortgage Strategy.

The UK Government will launch a consultation later this year in a major reform to property ownership, with a plan to ban new leasehold flats. This will mark one of the most significant changes in the property industry in decades. While commonhold ownership is far less established, with only 184 properties registered in England and Wales, compared with nearly 4.77 million leasehold homes in England alone, the market is set to take a new direction in how flats will be owned and managed. For buy to let (BTL) landlords, the shift to commonhold brings both challenges and opportunities, impacting everything from ownership rights to service charge structures, requiring landlords to reassess how they manage and invest in properties. As the market adapts, mortgage brokers will play a key role in helping landlords navigate the legal and financial implications to future-proof their property portfolios. The end of leasehold As part of the Leasehold and Commonhold Reform Bill, the government is planning to launch a consultation to ban new leasehold flats and explore an appropriate way forward. This move aims to address longstanding criticisms of the leasehold system which has been viewed as outdated and unfair to homeowners. With commonhold ensuring permanent ownership, ground rent will be cut and homeowners will have greater control over service charges, eliminating many of the pitfalls associated with leasehold ownership​. The Ministry of Housing, Communities and Local Government plans to publish the draft Leasehold and Commonhold Reform Bill later this year. This is expected to include detailed proposals for converting existing leasehold properties and implementing the changes to the commonhold regime. This legislation should provide a fairer property ownership structure, but the transition still has the potential to cause short-term uncertainty. Under the current leasehold system, many properties are owned by a third-party landlord known as a ‘freeholder’, who owns the building, while the leaseholder buys the right to occupy a flat within it for a fixed term (typically 99, 125, or 999 years). Leaseholders are responsible for paying costs such as ground rent and service charges, which are often set by third-party management companies. As a result, they’ve had limited control and transparency over these charges leading to issues like rising ground rents and high service costs, but this is set to change under new rules. Leasehold vs commonhold – what this change means for BTL landlords Commonhold properties enable flat owners to collectively own and manage the entire building, with shared areas managed collectively through a commonhold association, allowing a more collaborative approach to property management. No ground rent is charged and while third-party management companies can still be used, commonholders will have more control over their appointment. With potentially fewer charges for landlords, there should be less pressure to pass rising costs onto tenants, meaning costs could be lower and more predictable. Building management will also be governed by a shared set of rules, overseen by a committee of property owners. Landlords can be part of that committee, but decisions are made collectively. This means more transparency and a more collaborative approach to managing the property. How can brokers support landlords with commonhold properties   As the property market moves towards commonhold ownership, brokers have a vital role to play in helping landlords understand and adapt to the new structure. By educating clients on how the future ban will affect their properties, brokers can help them to make informed decisions on property management while also building trust with clients. The government is expected to publish the draft Leasehold and Commonhold Reform Bill later this year, laying the foundation for broader implementation. Ahead of this, the government also plans to consult on banning the sale of new leasehold properties, though this will depend on the establishment of a viable and scalable commonhold model. Brokers who stay up to date with the changing mortgage policies around leasehold and commonhold properties will be best placed to help landlords identify suitable lending options, restructure portfolios, and explore investment opportunities in commonhold developments. Brokers can also support clients in reassessing their risk exposure and long-term investment strategies as the market adapts. With the government aiming to make commonhold the standard tenure by the end of this parliament, mortgage brokers have an opportunity to lead in this evolving market. By staying informed, brokers can offer essential guidance to landlords, helping them adapt with confidence and future-proof their property investments.  Jonathan Stinton is head of intermediary relationships at Coventry for intermediaries The post Leasehold to commonhold: How brokers can help landlords navigate the change appeared first on Mortgage Strategy.

The Renter’s Rights Bill has moved to the report stage in the House of Lords, with landlords concerned that the legislation does not address the capacity of the courts to handle the banning of no-fault evictions.   The wide-ranging reforms left the committee stage of the Lords yesterday after peers began debating the Bill on 22 April. Its measures include, limiting rent increases to once a year, moves to end bidding wars, scrapping fixed-term tenancies as well as banning Section 21 no-fault possessions.  However, the National Residential Landlords Association warned that the Government has “failed to acknowledge the true state of the court system and its lack of readiness to handle possession cases following the end of Section 21 ‘no-fault’ evictions”.  It called on Labour to set out “a credible plan for court reform as a matter of urgency”. The landlord’s association points to Ministry of Justice data this week that shows that the average time between a landlord submitting a claim and regaining legitimate possession of a property in the first three months of 2025 rose to 32.5 weeks, from 29.8 weeks a year ago.  Once no-fault evictions are scrapped courts will have greater powers to hear, decide, process and enforce possession claims.  The housing department has said that courts will have the resources they need to handle any additional workload.  But National Residential Landlords Association chief executive Ben Beadle says: “Ministers are either unaware of the true state of the courts or are refusing to admit it.   “Their claims that the courts will be ‘ready’ for the impact of the Renters’ Rights Bill simply do not stack up.  “Seven months is an eternity for responsible landlords who may be dealing with serious rent arrears and for neighbours having to endure anti-social behaviour.  “The government must stop burying its head in the sand and commit to a fully funded, detailed and deliverable plan to ensure the courts are fit for purpose.”  However, in the Lords yesterday, housing minister Baroness Taylor said: “To end the scourge of Section 21 evictions as quickly as possible, we will introduce the new tenancy for the private rented sector in one stage.   “On that date, the new tenancy system will apply to all private tenancies.   “Existing tenancies will convert to the new system, and any new tenancies signed on or after that date will be governed by the new rules.   “There will be no dither or delay, and the abolition of Section 21, fixed-term contracts, and other vital measures in the Bill will happen as quickly as possible.”  During the General Election last July, Labour pledged to end no-fault evictions “immediately”. The post Rent Bill moves to report stage amid landlord concerns over court capacity   appeared first on Mortgage Strategy.

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.