The top story of the week: RightMove found the cheapest price on the market (it’s a two-year deposit with a deposit of 40%), while the Bank of England launched a disastrous stress test for the seven largest lenders.
Discover these and more key updates below:
https://www.youtube.com/watch?v=fs9djctpp28
Two-year fixed price is 40% deposit The cheapest price: RightMove
RightMove’s latest mortgage tracker shows that the lowest fixed transaction price on the market is the lowest, with a fixed amount of 3.86%, with 40% of fixed transactions. Even though the average interest rate for that bracket has dropped, first-time home buyers with smaller deposits still face higher borrowing costs. The average of 95% LTV is fixed at 5.40% for five years, with a slight decline in the year. Experts point out that affordability is still extending, with rising deposit requirements and stubbornly high interest rates making it harder for new buyers to enter the market.
BOE launches catastrophic stress tests of seven largest lenders
The Bank of England has stressed tests on seven of the UK’s largest lenders to assess resilience to severe economic shocks. The package includes a 28% drop in housing prices, a 5% drop in GDP, an unemployment rate of 8.5% and an interest rate of 8%. Participants from Barclays, HSBC, Lloyds, etc. (75% of UK loans). The Biennale Test replaces annual inspections to ensure banks can absorb shocks and support families. Results should inform capital buffering settings and broader risk assessments in Q4 2025. Experts say these plans reflect recent global economic turmoil.
Lenders are “too cautious” on FTB loans: FCA
The FCA said lenders were “too cautious” to approve first-time buyer mortgages, claiming they could use more flexibility under existing rules. CEO Nikhil Rathi believes that high rents prove that many people can afford to repay, but strict affordability checks prevent them. While lenders seek easy loans to income restrictions, the FCA warns that easier loans increase defaults. Regulators promised to consult on rule changes, but emphasized trade-offs, and mortgage arrears rose despite lower reposses. The review follows the government’s pressure to promote growth by reducing financial regulations.
Company tells FCA that disclosure rules are “too prescribed”
The mortgage company told the FCA that the current disclosure rules are “too prescribed”, limiting its ability to target customer demand or adapt to digital channels. Respondents believe that strict regulations hinder innovation and clarity in feedback on GST requirements. The FCA acknowledges concerns and confirms plans to review loan and recommendation rules to align them with consumer obligations. The May consultation will propose a mitigation recovery and shortening process, while the June discussion paper will explore affordability testing, future loan and consumer information reforms.
FCA Probe Protection Market Committee
The FCA investigates whether the commission structure of a purely protected market provides fair value to consumers. Regulators expressed concerns that consultant incentives could negatively impact product recommendations, pricing and consumer outcomes. The survey focuses on term guarantee, critical illness coverage, income protection and overall living insurance. Preliminary discoveries are expected to be made by the end of the year. Industry numbers require balanced commission flexibility, improved consumer trust and a simpler buying process. The FCA emphasizes ensuring that vulnerable customers receive fair treatment in this £4.85 billion claim market.
Revealed stamp duty rise in each region
Analysis by the Coventry Building Association shows that home buyers in England face higher stamp duty bills starting April 1 as the threshold for Neil rate dropped from £250,000 to £125,000. The average tax bill rose from £2,028 to £4,528, with regional changes causing Londoners to pay £17,446. First-time home buyers are still exempt from taxes below £425,000. Experts warn that hiking may force buyers to deposit less or borrow more. Since September 2022, the Ministry of Finance has imposed a property tax of £32.3 billion. The consultant urges buyers to carefully make changes to their budgets.
FCA vows to become a “smarter regulator” in the five-year plan
The FCA promises to be a “smarter regulator” in its five-year strategy, focusing on trust, growth and efficiency. It is committed to supporting economic growth, improving consumer outcomes and combating financial crime. The program includes streamlining oversight, digital licensing processes, and easing bureaucratic burdens for compliant companies. Chairman Ashley Alder emphasized balancing risks and opportunities, while CEO Nikhil Rathi vowed to reform at speed. The strategy is designed to promote innovation while maintaining high standards in UK financial services.
UK inflation fell to 2.8% in February: ONS
Inflation in the UK unexpectedly dropped to 2.8% in February, down from 3% in January, driven by lower costs of clothing and housing. Although economists warn of potential April price increases, the decline comes ahead of the principal’s spring statement. The Bank of England kept interest rates at 4.5 per cent, and one member voted in favor of the cut. Mortgage experts suggest that inflation may relieve pressure on borrowers, but warns that interest rates are expected to be significantly lowered soon. As inflationary pressures linger, the Prime Minister faces the challenge of balancing spending and economic growth.
Mortgage lenders launch 80% LTV BTL products and reduce rates
Mortgage lenders have expanded their sales by launching 80% of their LTV products and increasing their first-time landlord loan limit from £350,000 to £500,000. It reduced the selected BTL rate by 0.05% and reintroduced two-year fixed products at 75% LTV. Residential expenses also reduced by up to 0.10%. Chris Kirby’s head of sales said the changes are intended to support the evolving BTL market amid upcoming regulatory changes. These moves reflect TML’s commitment to addressing landlord challenges in complex property environments.
Spring Statement Preview: Housing List
Prime Minister Rachel Reeves faces pressure to support housing amid economic challenges, including slowing growth and the impact of U.S. tariffs. The government maintains its 1.5 million-suite target and announces £600 million in construction training and program reforms. The property sector seeks stamp duty deadline expansion, mortgage rule mitigation and lifelong ISA reform. As inflation and fiscal restrictions limit spending, observers await measures supported by green household escalation and first-time buyers. As the UK navigates global uncertainty, the statement aims to balance growth commitments with economic realities.
