Top two headlines this week: FCA broadcasts open banking mortgage exams and The Chancellor is tax rises and spending cuts in upcoming price range.
Explore these and different main business updates under:
FCA to run open banking mortgage exams
The Financial Conduct Authority introduced it could launch open banking mortgage exams subsequent month, working a three-month “techsprint” from 17 November.
Mortgage corporations had been invited to trial data-sharing concepts geared toward bettering entry, affordability and client understanding. Led by tech agency Raidiam, the initiative fashioned a part of the FCA’s wider Smart Data Accelerator work.
An extra SME open banking take a look at was deliberate for February, persevering with its mission to increase digital innovation.
Chancellor admits she is ‘’ Budget tax rise
Chancellor Rachel Reeves confirmed she was weighing up tax rises and spending cuts for November’s Budget, aiming to plug a £20–30bn hole. While ruling out hikes to earnings tax, VAT and National Insurance, she hinted property levies might rise.
Proposals included a brand new seller-paid property tax, a neighborhood annual levy to exchange council tax, and National Insurance on rental earnings — all a part of Labour’s effort to restore fiscal credibility.
Higher taxes on rich will probably be ‘a part of Budget story’: Reeves
Chancellor Rachel Reeves confirmed that greater taxes on the rich would type “a part of the story” in November’s Budget, spotlighting capital positive aspects, inheritance and financial savings levies. Speaking in Washington, she dismissed “scaremongering” about tax flight, insisting Britain remained enticing.
Speculation swirled over limits on items, money Isa cuts, and a possible “downsizing tax”. Reeves aimed to elevate up to £30bn, balancing equity, fiscal prudence, and a touch of political spice.
Mortgage charges rise for the primary time in eight months
Mortgage charges ticked up for the primary time in eight months, with common two- and five-year fixes rising 0.02% to 4.98% and 5.02%, Moneyfacts revealed. The common mortgage shelf-life lengthened to 22 days as lenders turned cautious amid risky swap charges.
While debtors grumbled, consultants famous charges remained far under final 12 months’s highs, and product alternative for low-deposit consumers hit a 17-year peak — hardly all doom and gloom.
House costs in England and Wales decline by 3% YoY in September: e.surv
House costs in England and Wales slipped 3% year-on-year in September to £355,100, mentioned e.surv. While gross sales volumes steadied after earlier distortions, costs stayed flat month-on-month amid financial jitters and Budget tax fears.
Southern areas, particularly the South East, led the decline, with solely London posting a modest rise. Analysts famous downsizers and landlords boosted provide, however demand fundamentals hinted that confidence might rebound with the precise coverage spark.
Barratt & (*13*) crew up with Barclays and TSB on new 5% deposit homeownership scheme
Barratt Redrow and (*13*) teamed up with Barclays, TSB, QSix and Ahauz to launch the Rezide Equity Loan, a scheme permitting consumers to buy new-build properties with only a 5% deposit.
The mortgage covers 15% of the property worth, with the remaining 80% financed by way of a mortgage. Aimed at first-time consumers and movers, the initiative seeks to make homeownership extra accessible following the tip of Help-to-Buy, easing deposit pressures.
Pepper Advantage appoints Golding as first group board chair
Pepper Advantage appointed Andy Golding, OSB Group chief government, as its first group board chair following acquisition by J.C. Flowers. Golding, with in depth expertise at Saffron Building Society, NatWest and Bradford & Bingley, joined to information strategic progress and technological innovation in credit score administration.
He aimed to help the chief crew whereas Pepper Advantage expanded its PRISM platform.
Recent board additions Antoinette Dunne and Mark Nieuwendijk additionally strengthened management throughout this transformative part.
Barclays will increase cap on bonus, additional time and fee earnings
Barclays has elevated the cap on bonus, additional time and fee earnings thought of in mortgage affordability calculations to 4 instances fundamental wage plus allowances. This means consumers in commission-heavy roles now see extra of their earnings recognised, boosting borrowing potential.
Barclays head of mortgages Lee Chiswell mentioned the tweaks aimed to assist first-time consumers and others beforehand restricted by affordability guidelines, making homeownership extra accessible and easing obstacles for a wider vary of consumers.
Reeves should keep away from ‘half-baked’ property tax fixes in Budget: IFS
The (*16*) for Fiscal Studies urged Chancellor Rachel Reeves to keep away from “half-baked fixes” to property taxes forward of the 26 November Budget.
It known as for abolishing stamp obligation, modernising council tax, and introducing a recurrent property levy primarily based on up-to-date values.
The thinktank argued that well-designed property taxes would elevate income with minimal financial hurt, permitting Reeves to fill a £20–30bn fiscal hole whereas supporting progress and equity within the housing market.
Ministers acquire powers to block councils from refusing planning permission
Ministers gained new powers to block councils from refusing planning permission for main housing and infrastructure initiatives, as a part of the Planning and Infrastructure Bill. “Holding instructions” now enable intervention whereas call-in powers are thought of, rushing up approvals and lowering authorized delays.
Housing secretary Steve Reed hailed the modifications as a “seismic shift” to construct 1.5 million properties, whereas consultants famous that unlocking long-term vacant properties might increase provide even quicker and extra sustainably.
