Top story of the week: TMW cuts new landlord prices starting at 3.24%, Revolut prepares for Irish mortgages and UK bank launches.
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TMW reduces new landlord rate starting at 3.24%
Starting March 15, the mortgage effort lowers the selected purchases for new customers by 30 basis points to a price of 3.24%.
Key changes include two-year fixed deals purchased and 3.24% (down 15bps) and 3.54% (down 20bps) or 4.84% fixed deals with no fees (down 30bps) and up to 65% LTV.
Senior manager Joe Avarne said the reduction is designed to improve market access for investors.
Lloyds Bank Group issues stamp duty to complete guarantee
Lloyds Banking Group, including Halifax and the Bank of Scotland. Lenders expect a 50% trend to end in March and are working with brokers and transporters to meet demand.
From April, the Neil rate stamp duty threshold will be reduced from £250,000 to £125,000, with a 2% tax on properties worth between £125,001 and £250,000. The threshold for first-time buyers will also be reduced, especially in high-cost areas such as London and Southeast.
Barclays’ latest lender provides stamp duty guarantee
Barclays is the latest major lender to ensure the completion of mortgage loans for cases filed before March 25, following a change in stamp duty rules on April 1. The bank urges the transporter to submit a certificate of ownership by this date to ensure completion.
The average monthly completion volume has increased by 26% since the October budget, driven by 59% driven by first-time buyers. Barclays said it has worked with agents and attorneys to prepare for the hasty. From April, the stamp duty threshold for Neil rate will be lowered to £125,000, while first-time home buyers will be reduced to £325,000.
LTI rules must be relaxed 4.5 times: UK Finance
UK finance companies have urged the easing of loan-to-income loan limits as part of their growth plan, proposing regulatory reforms to boost the economy. Banking institutions require changes such as relaxing mortgage restrictions, removing outdated guidance and capital requirements for free plans under government purchase plans.
Other recommendations include eliminating bank taxes, increasing the 0.5% stamp duty on retail investments and maintaining an ISA allowance of £20,000. The government has taken some measures, with the nation calling for a 4.5x review of the LTI restrictions to support more first-time buyers.
Revolut prepares for Irish mortgage and UK bank launch
Before the planned summer launch, Revolut is expanding its UK banking team and is preparing to offer a mortgage in Ireland. The digital bank received a UK bank license in July last year and was restricted in July last year, with its banking staff increasing from 35 to over 100, and plans to double the number by the end of the year.
CEO Francesca Carlesi’s goal is to make Revolut the main bank for UK clients to address concerns that many people use digital banks primarily for privileges rather than wage deposits. Rebels, who have 50 million users from 38 countries, also plan to start mortgage services in Ireland, Lithuania and France in July.
L&C mortgage appointment bet for MD
L&C Mortgage has appointed Sidney Wager as managing director, bringing nearly 30 years of experience from Barclays, where he holds senior leadership positions including head of intermediary market development.
As part of the L&C Executive Committee, he will oversee strategies across recommendations, operations, marketing, partners and technologies. His appointments are recently added by the executive team, including new CTOs, CFOs and CMOs.
CEO Mark Harrington praised Wager’s industry expertise, who expressed enthusiasm for joining L&C for its strong client focus and reputation in the mortgage sector.
Inflation-adjusted house prices only 12% in a decade: YOPA
Despite inflation-adjusted inflation, UK house prices have actually risen 12.1% over the past decade, despite nominal growth of nearly 52%. The average price of house prices rose from £176,561 in 2014 to £268,087 in 2024, while new homes grew by 79 per cent (33 per cent after inflation).
Yopa CEO Verona Frankish noted that while price growth seems shocking, inflation-adjusted growth has been more modest. However, affordability remains a challenge, with new home prices soaring significantly higher than the broader market.
MAB post 41% profit increases higher PROC and customer expenses
The Mortgage Advisory Board reported that profits before tax increased by 41% to £22.9 million in full year with high acquisitions and client fees.
Procurement fees increased by 7.9 per cent to £105.8 million, while the Protection and General Insurance Commission rose by 12.4 per cent to £104.7 million. Customer fees also increased by 18.1% to £51.2 million. The consultant number increased slightly to 1,985, with revenue per consultant rising 12.3% to £138,700.
The company noted that mortgage apps surged in late 2024 and expected continued growth in 2025. It is also considering moving to major markets to expand its investor base.
HSBC starts cutting transfer windows from April
HSBC will reduce its product switch window in three phases, from 180 days in April to 150, May 120, and June 90. This is after a broader industry trend that shortens the six-month window introduced under the mortgage charter.
Brokers noted that as interest rates steadily declined, demand for early lockdowns decreased, easing administrative burdens for lenders and consultants. Industry experts believe that shorter windows will simplify processes, improve efficiency and better reflect current market conditions.
Virgin Money Renovation Scope
Virgin revamps its remodeled growth mortgage scope and currently offers up to £10,000 cash back to customers making energy-efficient home improvements. Lenders have stopped their choices for seven and ten years, but have added cash back to five years of fixed-rate mortgages.
Available for residential and purchase customers with loan sizes ranging from £150,000 to £500,000, the range offers cash back amounts of £5k, £7,000 or 10k, paid to the transporter upon completion.
These mortgages help fund energy-efficient upgrades such as insulation materials, solar panels and heat pumps, faster in the first five years before moving to core products.
