Mortgage Strategy’s Top 10 Stories: 28 Sept to 02 Oct – Mortgage Strategy
This week’s top headlines: More than a quarter of landlords plan to quit market and Burnham vows to bring leasehold bill before Christmas.
Explore these and other major industry updates below:
Govt’s new FTB scheme for borrowers with just 2.5% deposit
The government is set to launch the Your First Home scheme in next month’s Budget, allowing eligible first-time buyers to purchase new-build homes with a deposit of just 2.5% alongside a 20% government-backed equity loan.
The scheme could halve the upfront deposit needed compared with a traditional 5% deposit, but advisers highlight the need to consider long-term affordability, new-build pricing, property caps and how the remaining 2.5% will be funded.
More than a quarter of landlords plan to quit market: Spare Room
SpareRoom research found 27% of landlords in England plan to leave the rental market, while 36% are reducing their portfolios and fewer than 4% are expanding.
The findings come as 78% report having no confidence in the rental market following Renters’ Rights Act reforms, with smaller landlords particularly likely to exit and concerns growing over falling rental supply and higher rents.
Burnham vows to bring leasehold bill before Christmas
The Prime Minister has pledged to introduce a Commonhold and Leasehold Reform Bill before Christmas, promising further protections for leaseholders, including capping existing ground rents and making commonhold the default for most new flats.
The commitment follows years of delayed reforms, with the National Leasehold Campaign welcoming the proposed legislation but urging the government to deliver meaningful change and stronger regulation of property agents.
Barclays pulls market-leading deals and hikes rates by up to 30bps
Barclays is raising rates by up to 30bps across 85 residential and buy-to-let products, with several market-leading sub-5% fixes moving above 5%.
The changes include a 60% LTV two-year fix rising from 4.75% to 5.05%, as wider lender repricing continues to put pressure on the availability of sub-5% mortgage rates.
Nationwide for Intermediaries to hike rates by up to 21bps
Nationwide for Intermediaries will raise fixed and tracker rates by up to 21bps from 30 September across its purchase, remortgage, first-time buyer, moving home and existing customer ranges.
The changes leave just one sub-5% fixed rate for new customers, a 4.99% two-year fix at 60% LTV, as lenders continue to reprice and average fixed rates move closer to 6%.
Halifax Intermediaries becomes latest lender to hike mortgage rates
Halifax Intermediaries will raise selected mortgage rates by up to 15bps from 2 October, affecting homemover, first-time buyer, remortgage, product transfer and further advance ranges.
The move is the lender’s sixth rate change since 1 September, adding to a wider wave of lender repricing that is leaving fewer sub-5% fixed-rate deals available.
LSL names Mercer as sales director for Primis and TMA Club
LSL Financial Services has appointed Paula Mercer as sales director for Primis and TMA Club, bringing more than 18 years of financial services experience from roles at LendInvest, Atom bank and Lloyds Banking Group.
Mercer will focus on recruiting new firms and supporting growth across Primis, while strengthening lender relationships and promoting TMA’s partnerships.
Barclays hikes fixes for second time in week – some jump 40bps
Barclays is raising mortgage rates for the second time this week, with 62 products increasing and 46 deals repriced for a second time.
Some products have now risen by as much as 40bps since Monday, including a 60% LTV two-year fix for purchase moving from 4.75% to 5.15%, as the lender continues to reprice across its ranges.
Co-op cuts transfer window and Barclays tweaks charges
The Co-operative Bank for Intermediaries is cutting its product transfer window from six months to four months before a borrower’s current deal ends, bringing it in line with Coventry Building Society and other lenders.
Meanwhile, Barclays is changing how product fees are applied for existing customers, with interest only accruing once the new rate starts, meaning borrowers who cancel before then will not be charged the fee or interest.
TSB and Virgin Money to raise rates again
TSB and Virgin Money are set to raise mortgage rates again, with TSB increasing selected product transfer, residential and buy-to-let rates by up to 30bps, alongside higher additional borrowing rates.
Virgin Money will raise rates across purchase, remortgage and product transfer ranges, with increases of up to 20bps, as lenders continue to reprice their mortgage books.
