The hot story of the week: Mortgage lenders launch 80% of LTV BTL products and lower prices, and the government issues white papers to abolish “feudal” lease rights.
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Mortgage lenders launch 80% LTV BTL products and reduce rates
Mortgage Lenders (TML) has launched 80% of Loan-to-Value (LTV) Product (BTL) customers and has increased the maximum loan amount for first-time landlords from £350,000 to £500,000. Lenders have also lowered interest rates on their BTL and residential product ranges, including reducing selected BTL rates by 0.05%.
Notable changes include a reduction in the interest rate of the five-year 75% LTV fee range and a reboot of its two-year fixed-rate BTL product. TML’s residential scope has also been cut, with its RL1 two-year and five-year fixed products down by 0.10%. Chris Kirby’s sales executive stressed that TML is committed to supporting the rental market due to evolving real estate regulations.
Government issues white papers to abolish “feudal” leasing rights
The government proposed reforms to eliminate land rents for homeowners and turn to co-leasing, making it the default ownership model for new homes. These changes are intended to give homeowners greater control over building management and avoid problems caused by current rental systems.
The reforms also seek to ban new rental apartments and improve management of common property, while providing residents with more flexibility and protection. But critics argue that these changes could create a two-story housing system that puts people in existing leased properties unresolved financial challenges.
Trade war will cause ‘substantial’ UK damage: Boe Bailey
Andrew Bailey, the governor of the Bank of England, warned that a global trade war, especially U.S. tariffs on British imports, could seriously damage the British economy, raise prices and reduce consumer purchasing power.
Bailey stressed that trade-supported growth should be addressed, trade imbalances should be achieved through multilateral forums rather than unilateral actions.
If the United States imposes tariffs on VAT countries such as the United Kingdom, the United Kingdom has a risk of £24 billion in economic strikes. Bailey also stressed economic uncertainty, inflation is expected to increase and economic growth is stagnant.
Halifax confirms changes in product range
Halifax has made several changes to its mortgage scope starting March 5, including selected fixed-rate home transfers and a drop in first-time purchases of up to 0.14%.
In addition, the maximum loan limit for lenders’ first home plan products has been increased to £1 million.
The update will be reflected on the Halifax agency website and other procurement systems by March 5.
When Turrell announces retirement, CHL mortgage of intermediary appoints Walker
Ross Turrell, the commercial director of CHL Mortgages’ intermediary, announced his retirement after more than 40 years of financial services. Turrell rejoined the CHL in 2020 after his previous tenure in 1998, and he will be succeeded by Darrell Walker.
Walker, the current director of sales and distribution at ModamortGages, will serve as the director of group sales at CHL mortgage intermediary and Modamortgages. Walker brings extensive experience from positions at Shawbrook Bank, OneSavings Bank and other companies. Turrell is confident in Walker’s leadership and looks forward to enjoying more time with his family.
The most risky young people in rent scams: Fraud Bureau
According to the National Fraud Intelligence Agency (NFIB), young people aged 18 to 39 represent almost three-quarters of rental fraud cases in England, Wales and Northern Ireland.
In 2024, nearly £9 million was lost in about 5,000 cases, with 48% in the 18-29-year-olds age group compared with 25% in the 30-39 group.
The Home Office is urging tenants to be cautious when making decisions and avoid paying for real estate without meeting in person. It also calls on technology companies to handle fraud more effectively on social media platforms.
The government is promoting its cessation! Consider the fraud campaign and push for two-step verification nationwide to prevent online fraud.
Halifax Cut Resi fixes up to 31bps, Landbay launches BTL loan
Halifax cuts residential fixed-rate offer by 31 basis points, its product transfers and further prepaid loans see a maximum reduction of 31bps, and opts for re-loan fixed that can cut up to 25bps.
Meanwhile, Landbay has launched four new purchases for small houses with multiple occupations and multi-unit freehold blocks, offering a five-year fixed interest rate starting at 5.09% for loans ranging from £150,000 to £500,000. These products are designed to meet the growing demand for multi-unit properties, including purchase and cash-out options.
Barclays offers 3.96% green five-year fix deal
Barclays lowered mortgage rates from March 4, with five-year fixed green homes down to 3.96%, £899 product fees, and 60% LTV mortgages. Green home mortgages can be used for energy-efficient new homes with a rating of 81 or higher.
Barclays also lowered interest rates by 0.48%, fixed to two years, £0 for product fees, and 90% of LTVs now get 4.93%. In addition, lenders have increased the maximum loan amount of LTV purchases by 90% with the house cap increasing from £570,000 to £640,000, while the apartment cap increased from £275,000 to 310k.
Virgin and Natwest reveal further changes.
Both Virgin and Natwest announced mortgage rates changes effective March 6.
Virgin lowered interest rates on several products, including a 0.09% reduction for two-year and five-year fixed rates for 80% LTV, starting at 4.37%. Its remodeling and green mortgages will also be reduced by up to 0.14%, starting at 4.30%. Additionally, Virgin has changed its exclusive BTL rate, reducing it by 0.10%.
NATWEST, on the other hand, lowered the interest rate on 60% LTV residential mortgage purchases by 5bps, while also increasing the 90% LTV purchase rate by 8bps. Lenders have also raised interest rates on some cash-out and first-time buyer products, including a 5-year fixed 90% LTV Remortgages increase in 5bps.
Rents in the UK have risen by just 3% as Zoopla warns rent reforms will continue to limit supply
According to Zoopla’s quarterly rental market report, the average rent for New Lets has increased by 3% over the past year and now it is an average rent of £1,284. This is a significant slowdown compared to last year’s 7.4% growth, reflecting a deteriorating rental affordability rather than increasing housing supply.
While rental supply rose slightly, demand fell by 17%, mainly due to reduced immigration and increased demand for first-time buyers. However, the market is still facing supply shortages, coupled with rental reforms and energy rating requirements for real estate, which may lead to further restrictions in the future, thus maintaining upward pressure on rents. Zoopla forecasts rents to increase by 3-4% in 2025.
