Mortgage Strategy’s Top 10 Stories: 05 Oct to 09 Oct – Mortgage Strategy
This week’s top headlines: YBS lowers rates by up to 0.50% and average household disposable income rises to £39,200.
Explore these and other major industry updates below:
YBS lowers rates by up to 0.50%
Yorkshire Building Society has cut mortgage rates across its range, with reductions of up to 0.50% on five-year fixes for homebuyers with a 5% deposit and cuts for remortgagers.
Highlights include a five-year fix at 95% loan-to-value (LTV) reduced to 5.79%, a five-year fix at 75% LTV lowered to 4.97%, and a fee-free two-year fix at 80% LTV cut to 5.34%. Eligible members can also benefit from £250 loyalty cashback.
Stonebridge and HLP among fastest-growing mortgage networks as consolidation looms
Stonebridge Mortgage Solutions and HL Partnership are among the UK’s fastest-growing mortgage networks in 2026, adding 43 and 34 appointed representative firms respectively, according to Network Consulting’s latest league table.
Their parent companies are set to combine through BetterHome Group’s proposed acquisition of Mortgage Support Services, while other networks have recorded declines in firm numbers.
Network Consulting cautions that growth alone does not indicate performance, highlighting the importance of factors such as compliance, technology, costs and adviser support.
TSB and Coventry make further rate increases
TSB and Coventry Building Society are increasing selected or all fixed mortgage rates for residential and buy-to-let borrowers, while Accord is cutting some residential new business rates by 0.10%.
Shawbrook is also set to reprice several buy-to-let and commercial lending products, although details have not been disclosed.
The changes come as Moneyfacts reports the average five-year fixed mortgage rate has reached 6%, with the average two-year rate close behind.
Average household disposable income rises to £39,200: ONS
Average UK household disposable income rose by 3.5% to £39,200 in 2025, according to the Office for National Statistics, with income increasing by 5.6% among the poorest fifth of households and 5% among the richest fifth.
Income inequality remained broadly stable, edging down by 0.2 percentage points to 32.7%, although the richest fifth still had 5.6 times the income of the poorest fifth.
The ONS cautioned that a smaller survey sample means the latest estimates are subject to greater uncertainty.
UK housebuilding remains under pressure as residential starts fall 33%
UK residential construction remains subdued, with the value of projects started in the three months to September 2026 falling 8% quarter-on-quarter and 33% year-on-year, according to Glenigan.
Social housing starts dropped 33% over the quarter, while private housing starts rose 4% but remained well below last year’s levels.
Glenigan says high borrowing costs and economic uncertainty are holding back developers, with greater government support and clarity from the forthcoming Budget needed to help revive housebuilding.
Average five-year fixed hits 6%: Moneyfacts
The average five-year fixed mortgage rate has reached 6%, while the average two-year fix stands at 5.98%, their highest levels for around three years, according to Moneyfacts.
The number of fixed-rate deals priced below 5% has fallen by 99% since the start of September, from 1,494 to just nine, following repeated rate increases by major lenders amid swap rate volatility.
Moneyfacts advises borrowers approaching the end of their current fixed deal to seek advice and compare options early, as they may be able to secure a new deal several months before expiry.
Shawbrook cuts buy-to-let rates as Foundation pulls 90% LTV products
Shawbrook has cut selected buy-to-let mortgage rates by up to 0.25 percentage points for loans of £250,000 to £1m, while making other adjustments across its product range.
Meanwhile, Foundation Home Loans will withdraw its 90% LTV residential products on 7 October, replacing them with lower rates the following day, with brokers required to meet strict deadlines for submitting decisions in principle and full applications.
The changes come as average residential fixed mortgage rates remain elevated, with the five-year average reaching 6%, according to Moneyfacts.
Cost of moving home is now £17,413: Reallymoving
The average cost of moving home in England has reached £17,413, according to Reallymoving, down 2.3% on last year but 74% higher than a decade ago after adjusting for inflation.
Lower property prices and removal costs helped offset rising conveyancing fees, while stamp duty remains the largest expense, averaging £9,500.
Costs vary significantly by region, averaging £32,017 in London compared with £11,110 across the North East, North West and Yorkshire and the Humber.
Average UK room rent hits record £769 per month: SpareRoom
The average UK room rent reached a record £769 a month in the third quarter of 2026, up 1% year on year, while the number of advertised rooms fell by 4.7%, according to SpareRoom.
Rents hit record highs in seven of the nine English regions, with Greater London remaining the most expensive at £932 a month, while Northern Ireland recorded the strongest annual increase at 7%.
SpareRoom warns that rising rents and shrinking supply are putting further pressure on renters, highlighting the need for additional measures to improve affordability.
Your First Home scheme could save homebuyers £21,500
The government’s proposed Your First Home scheme could save first-time buyers £21,471 over five years while halving the minimum deposit requirement, according to UK Property Development research.
Under the proposed scheme, eligible buyers of new-build homes could purchase with a 2.5% deposit and a 20% government-backed equity loan, although the savings estimates rely on assumptions about terms yet to be confirmed.
Further details, including eligibility criteria and property price limits, are expected in the Autumn Budget, with concerns raised over whether housing supply can meet increased demand.
