This week’s prime headlines embody Monzo Bank being fined £21 million for lax anti-financial crime controls, and lenders signing an open letter warning the Chancellor not to slash the money ISA restrict.
Explore these and different main business updates beneath:
Monzo fined £21m for poor monetary crime controls by FCA
Monzo Bank has been fined £21 million by the Financial Conduct Authority for failing to preserve satisfactory anti-financial crime controls, permitting tens of 1000’s of high-risk clients to open accounts between 2018 and 2022.
Despite fast progress in its buyer base, Monzo’s techniques failed to hold tempo, main to breaches of laws designed to stop monetary crime.
The financial institution has since overhauled its controls by way of a complete enchancment programme, and whereas it confronted a bigger fantastic, it obtained a reduction for cooperating with the investigation. Monzo’s management insists these points at the moment are firmly previously.
Large lenders ready to prime key LTI 15% restrict, says regulator
The Bank of England’s Financial Policy Committee has eased restrictions on giant lenders, permitting them to exceed the earlier 15% loan-to-income cap on mortgages over 4.5 instances a borrower’s revenue, whereas holding the general market inside this restrict.
The change, geared toward supporting first-time patrons and financial progress, will give lenders like Nationwide higher flexibility to supply excessive LTI loans, significantly by way of schemes resembling Helping Hand. While welcomed by lenders and business our bodies, issues stay that with out elevated housebuilding, the transfer may push up home costs and repossessions. The new guidelines take impact from 11 July.
Lenders warn chancellor not to slash money ISA restrict
Leading figures from constructing societies, credit score unions and the financial savings business have urged the chancellor to hold the £20,000 money ISA allowance unchanged, amid hypothesis it could possibly be minimize in favour of boosting funding in shares and shares ISAs.
They argue money ISAs are an important financial savings software for tens of millions on decrease incomes, with common balances offering essential monetary safety, and that these funds assist mortgage lending by constructing societies and credit score unions. Reducing the allowance, they warn, dangers elevating mortgage prices, harming first-time patrons and undermining the federal government’s housing targets.
HSBC cuts charges on over 300 loans by up to 16bps
HSBC has lowered over 300 residential mortgage charges for each new and current clients, with cuts of up to 16 foundation factors throughout merchandise for dwelling movers, first-time patrons, remortgagers, and worldwide shoppers
Its lowest supply is a two-year fixed-rate at 60% loan-to-value, ranging from 3.82% for Premier clients and three.85% for others. The transfer follows related reductions from Santander and NatWest, reflecting rising competitors amongst lenders to appeal to debtors with extra aggressive dwelling mortgage offers.
Halifax particulars chosen fee adjustments
Halifax has introduced fee cuts of up to 0.10% on chosen fixed-rate mortgages for dwelling movers and first-time patrons, and up to 0.15% on sure remortgage merchandise, efficient from 9 July. No adjustments have been made to product switch or additional advance offers.
Brokers have till 8pm on 8 July to submit full functions to safe current charges, with updates to be mirrored throughout Halifax’s on-line middleman platforms.
Fixed fee reductions proceed as sub-4% offers again in the marketplace
This week noticed a wave of fastened mortgage fee reductions, with some lenders reintroducing sub-4% offers. Moneyfacts knowledge reveals common two-, three- and five-year fixes fell barely, with three-year charges dipping beneath 5%.
Major lenders together with Barclays, Halifax, HSBC, Lloyds, NatWest, and Santander minimize charges by up to 0.18%, whereas a number of constructing societies and specialist lenders additionally lowered charges. Despite speak of a possible ‘fee struggle’, general common falls stay modest.
Experts advise debtors to assess the total mortgage package deal fastidiously and search dealer recommendation, as additional cuts may comply with if swap charges and base charges fall.
Property flipping hits lowest determine for 12 years: Hamptons
In early 2025, property flipping fell to its lowest degree in over a decade, with flipped properties making up simply 2.3% of transactions in England and Wales, in accordance to Hamptons. Slower home value progress and rising prices have squeezed earnings, with the typical gross revenue at £22,000—down from a 2022 peak.
Investors are more and more energetic within the Midlands and North, the place decrease property costs and stamp responsibility make flipping extra viable. The North East stays the nation’s flipping hotspot, whereas larger taxes and prices have made refurbishing properties within the South much less engaging for traders.
Cheshire brokerage in workers purchase out
(*11*) at Cheshire-based Wiseone mortgage brokers have accomplished a buyout of the agency’s co-founders, Tim Rigden and Paul Newbold, transferring possession to an worker possession belief.
Founded 25 years in the past, Wiseone will stay a directly-authorised agency and a part of TMA Club, having just lately gained New Build Broker of the Year 2025.
Newbold is retiring this month, whereas Rigden will proceed to lead the enterprise with a brand new crew of administrators. Rigden stated the brand new construction empowers workers and helps collective success, with TMA Club praising the founders’ customer- and employee-focused values.
Over half of brokers concern AI may take their jobs: Survey
Over half of mortgage brokers fear that AI may cut back the necessity for intermediaries, with 54.5% expressing concern in a Smart Money People survey. Despite this, over 40% haven’t any plans to use AI instruments, and just one in eight presently incorporate AI of their recommendation, principally for administrative duties slightly than consumer assist.
Brokers are divided on AI’s function in lending selections, with simply 6% very snug with it, whereas almost 40% really feel uneasy. Meanwhile, 34% of homebuyers use AI to discover mortgage choices, appreciating its ease of comparability and readability. Experts recommend a future the place AI enhances slightly than replaces human recommendation, emphasising the significance of regulated, professional steering.
Mortgage functions leap 42% in June: Stonebridge
Mortgage functions soared by almost 42% in June in contrast to final yr, in accordance to Stonebridge community’s newest replace. Falling mortgage charges—down 62 foundation factors over the yr—have saved debtors a mean of £888 yearly.
In June, 64% of debtors selected fastened offers of three years or much less, up from 60% final yr, signalling hopes for future fee cuts, whereas 95% opted for fastened over variable charges.
Stonebridge CEO Rob Clifford expects no less than one Bank of England fee minimize this yr, which may enhance affordability and additional improve market exercise, indicating a rising purchaser confidence and a possible housing market restoration.
