This week’s prime tales: FCA consults on mortgage rule evaluate and Barclays UK appoints McCormack head of mortgage intermediaries.
Explore these developments and extra:
FCA consults on mortgage rule evaluate
The Financial Conduct Authority (FCA) has launched a wide-ranging evaluate of mortgage guidelines to enhance homeownership and financial progress, specializing in bettering entry for first-time patrons, the self-employed, and older debtors.
The evaluate considers updating accountable lending guidelines, growing flexibility, and inspiring innovation, whereas making certain shopper safety and market resilience. With enter invited till 19 September, the FCA goals to stability threat and alternative, assist later-life lending, and work with authorities and trade to take away obstacles and assist extra folks safe sustainable mortgages.
Barclays UK appoints McCormack head of mortgage intermediaries
Barclays UK has appointed Roland McCormack as its new head of mortgage intermediaries, a senior function created to strengthen its middleman technique and market share.
Starting on 1 July, McCormack will report to head of mortgages Lee Chiswell and brings over 30 years of expertise, together with main TSB Bank’s middleman proposition. Barclays says the appointment displays its ambition to ship a aggressive and compliant service for intermediaries.
ModaMortgages launches restricted version 75% LTV BTL vary
ModaMortgages has launched eight restricted version 75% loan-to-value (LTV) mortgage merchandise for single dwellings and HMOs, providing two-year fastened charges from 3.24% and five-year fixes from 4.69%, with a alternative of three% or 5.5% product charges.
Suitable for particular person and restricted firm landlords, the vary consists of free valuations and no utility charges. Small HMO and MUFB merchandise, for properties with up to six bedrooms or models, begin at barely larger charges.
The transfer goals to assist landlords handle affordability amid persistently excessive rates of interest, providing charges up to 25bps decrease than core merchandise.
Retiring Mortgage Charter signal of regulator’s new threat tradition: FCA Rathi
Financial Conduct Authority chief government Nikhil Rathi has signalled a shift in direction of a extra growth-focused and risk-tolerant regulatory method, suggesting the Mortgage Charter, launched throughout a interval of rising rates of interest, may very well be scrapped to cut back duplication and reporting burdens.
Speaking at TheCityUK convention, Rathi highlighted the FCA’s dedication to reviewing outdated guidelines and fostering competitors within the mortgage market, following authorities requires regulators to assist financial progress.
The FCA’s ongoing mortgage evaluate explores reforms together with eradicating five-year mortgage mandates, easing stress checks, and increasing later life lending choices.
Barclays cuts charges with lowest at 3.88%, TSB trims costs by up to 0.30%
Barclays has lowered a number of mortgage charges, with two-year fastened offers now ranging from 3.88% at 60% loan-to-value (LTV), undercutting Nationwide’s equal gives. The cuts have an effect on each buy and remortgage ranges, together with inexperienced dwelling merchandise and premier choices, with charges starting from £899 to £999.
TSB has additionally lowered charges throughout its residential, shared fairness, and shared possession ranges, with reductions of up to 0.30% on chosen two, three, and five-year fastened merchandise for first-time patrons and residential movers. (*27*) swap charges could lead to additional lender price cuts within the coming weeks.
Borrowers assured out there as they anticipate discount in mortgage charges: Twenty7tec
Borrowers are more and more choosing short-term fixed-rate mortgages in anticipation of additional rate of interest cuts, in accordance to Twenty7tec information.
In May, almost 48% of all ESIS paperwork generated have been for two-year or shorter fixes, up from 40.5% in October 2024. This shift displays rising confidence in falling charges following the Bank of England’s latest base price reduce to 4.25%.
Borrowers are favouring flexibility over long-term certainty, with advisers urged to put together for extra frequent refinancing conversations as consumer behaviour continues to adapt to financial indicators.
Tandem Bank appoints Chandler as CEO
Tandem Bank has appointed Neil Chandler as its new CEO, succeeding Alex Mollart after three years within the function. Chandler brings over 30 years of expertise throughout banking, eCommerce, and know-how, most not too long ago main Aion Bank by means of its sale to UniCredit Group.
Praising Tandem’s customer-first method and robust know-how, Chandler expressed enthusiasm for driving the financial institution’s subsequent part of progress. Mollart leaves after serving to set up Tandem as a worthwhile, high-growth fintech, with latest improvements together with the launch of its automated platform, Connect by Tandem.
Mortgage Advice Bureau invests in The Mortgage Mum
Mortgage Advice Bureau has made a strategic funding in The Mortgage Mum, an all-female brokerage based in 2019 by Sarah Tucker, who will stay as managing director.
The agency will now function as an appointed consultant of the community, with the partnership aimed toward driving important progress and enlargement throughout areas comparable to wealth administration and specialist finance.
Tucker, recognized for her media and coverage work, praised the assist from MAB, whereas CEO Peter Brodnicki highlighted the significance of strategic collaborations in serving to bold companies scale successfully.
Non-dom tax crackdown led to £400m prime property stamp obligation hunch
Changes to the UK’s non-dom tax regime have brought on an estimated £401m loss in stamp obligation income, Knight Frank reviews, linked to a 14% drop in £5m-plus London property gross sales.
Labour Chancellor Rachel Reeves has closed inheritance tax loopholes, although some April reforms could also be revised.
(*23*) people are transferring overseas to keep away from larger taxes, impacting the prime property market. Despite this, the Treasury expects non-dom taxes to elevate £33.8bn over 5 years, however misplaced stamp obligation now equals 4% of the UK’s fiscal headroom.
Govt lays out good information plans to ease homebuying in Industrial Strategy
The authorities is investing £36m to enhance good information sharing throughout the property sector, aiming to velocity up homebuying and cut back pricey delays. This transfer builds on successes like open banking and helps digital instruments that make transactions extra environment friendly.
Industry leaders, together with Pexa UK, welcome the initiative as a approach to streamline the complicated strategy of property gross sales. New legal guidelines permitting simpler information sharing are anticipated to enhance the UK economic system by £10bn over the subsequent decade.
