The week’s hot story: Barclays adds trading options less than 4%; Clydesdale also lowers rates, while Natwest relaxes stress testing rules to launch JBSP loans and pruning rates.
Explore these and more key updates below.
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Barclays adds 4% trading options; Clydesdale also reduces rates
Barclays expanded its 4% mortgage range in April 2025, adding six products, including options for existing customers. The maximum reduction rate is 33 years, fixed in the 2-year cash-out of 75% LTV. Interest rates for residential and reversed products fell to as low as 3.91%. Clydesdale Bank also lowered selected residential and larger loan rates by 0.15%, although some purchase tax rates increased by 0.09%.
NATWEST relaxes stress testing rules, launches JBSP loans to reduce fees
NATWEST relaxes mortgage stress testing rules in April 2025, allowing families to borrow more than £33,000. It launched a joint borrower sole proprietor (JBSP) home-backed mortgage loan, allowing first-time home buyers to combine their income with relatives while retaining sole ownership. The bank also launched less than 4% and five-year fixed mortgage loans for 60% of LTV, at 3.88%. These changes follow similar moves from Lloyds and Santander to reduce affordability limitations.
Agreement makes strategic changes to leadership teams
Accord Mortgages reorganized its leadership team in May 2025, expanding it from eight members to two new roles. Chris Hill became head of sales, Nick Piper was appointed head of strategy, and Nicola Alvarez formed a strategic partnership. Caroline Mills joins the agency distribution team manager, while Gurpreet Chahal and Angelika Christian take on regional sales and partner roles. Managing Director Jeremy Duncombe said the changes are designed to enhance broker support and future business.
Property tax valuation agency is abandoned to cut the traditional Chinese tape festival
The government announced it would abolish the Assessment Office body and incorporate it into the HMRC by April 2026, aiming to reduce the traditional Chinese tape festival and increase supervision. The agency is responsible for assessing properties with council taxes and commercial interest rates, helping to collect £60 billion a year. Labor said the move could save 5-10% of administrative costs by 2028-29. This decision is part of a broader effort to simplify the tax system and reduce business costs.
PEXA gets FCA approval before product launches for sale and purchase
PEXA has obtained authorization from the Financial Conduct Authority to operate as an authorized payment agency and marked a key milestone before launching its UK-selling products in late 2025. The new product, along with its Remortgage Service, is designed to support 70% of real estate transactions in England and Wales. The approval also enables PEXA to act as a third-party hosting account provider for carriers, strengthening its commitment to ensure, scalable and lasting industry innovation.
British property appeals as “safe haven” amid Trump tariffs: Cavalier Frank
Knight Frank reported international buyers and tenants turned to the UK property market due to instability caused by Trump’s tariffs. Uncertainty in global markets, especially in U.S. trade policy, makes British real estate more attractive. Mortgage rates have fallen as Bank of England is expected to lower interest rates. Knight Frank noted that UK property exchanges increased by £5 million, with investors especially in London increasing interest.
The owner who saw a tax reduction over the weekend: Money facts
Mortgage rates dropped this weekend after a slow start to begin this week, with more than a dozen lenders lowering fixed rates. The average two-year and five-year fixed rates fell to 5.21% and 5.12% respectively. Major banks and construction societies have undergone significant reductions, including a nationally attractive 3.89% five-year fixed transaction. More and more lenders are also starting to offer mortgages under 4%.
Lease property shortage as the third place for landlords to plan sales: Pegasus
Pegasus Insight reported that 37% of landlords plan to reduce their property portfolio next year, almost double the Q1 2022 Q1. With fewer landlords and expanding their portfolio, potential rental shortages are vaguely visible. Despite high tenant demand and stable rental yields, landlords are concerned about policies such as the tenant’s bill of rights and potential tax rate hikes. This could lead to a decrease in stocks in the private rental sector, thereby driving up rents.
Halifax announces more deals below 4%
Halifax announced three new 4% mortgage deals as similar tax rates were lowered last week. These include 60% LTV’s two-year fixed rate of 3.79% and a fee of £1,999, and a two-year fixed rate of 3.88% and 3.98%, both of which are £999 or £1,999. Last week, Halifax also lowered interest rates for homebuyers and mortgage products, including a two-year, 3.94% and a five-year fixed rate of 4.27%.
FCA settings to start real-time AI testing service
The Financial Conduct Authority (FCA) announced plans to launch on-site AI testing services in September 2025. The service is designed to help companies deploy secure AI tools while working with regulators. It will run for 12 to 18 months, providing regulatory support to companies deploying consumer or market-oriented AI models. The plan aligns with FCA’s new five-year strategy to support technological growth and better understand the impact of AI on the UK financial markets.
