The top stories of the week include April mortgages that will reveal a long-term 100% LTV home loan, as well as gable mortgages, launching a five-year deal with a 0% deposit. Explore these and other key developments below.
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April mortgage launches long-term 100% LTV home loan
In April Mortgage launched a long-term 100% loan-to-value housing loan called a no-deposit mortgage. Offered on fixed terms of 10 and 15 years, it allows borrowing up to 4.49 times the income without early repayment. As equity grows, the product includes no additional overpayment and automatic rate reduction. It targets buyers with strong finances but no home support, and it tries to address home ownership barriers without relaxing lending standards.
Gable mortgage signs 0% deposit for five-year transaction
Gaibull Mortgage launched a two-year, five-year fixed-rate deal for the first and next buyers, with the goal of “one generation rental” customers working hard to save deposits. The standard rate is 5.95%, and the new version is set to 5.65%. The loan size ranges from £125,000 to £1 million, and the upper limit of loan to income varies depending on employment status. Following a similar move to mortgage loans in April, the press conference showed that lenders’ response to the deposit challenges facing aspiring homeowners is growing.
FCA mortgage proposal “Overlook” broker suggestion: AMI
The Mortgage Agency Association believes that the FCA’s proposal for mortgage rules ignores the important role of brokers and risks weaken consumer protection. While the FCA is designed to simplify switching and recovery, AMI warns that this may reduce the chances of getting high-quality advice, resulting in poorer results. AMI has led the challenge with 97% of mortgage business brokers and criticized the push to execute only transactions that lack basic guidance and safeguards.
Speed cuts “too fast”: Boe Pill
Huw Pill, chief economist at the Bank of England, said the pace of the base tax rate was “too fast”, warning that inflationary pressures needed a more cautious approach. Since August, the bank has implemented four 25bps cuts, bringing the interest rate to 4.25%. The pill recommendation is reduced too early and points to signs of weakening dissolution. With inflation expected to rise to 3.5%, he stressed that while economic growth improves forecasts, there are still some policy restrictions that are still necessary.
HSBC trim RESI, BTL and international mortgage rates prices
HSBC’s reduction rate in its residential, sales-to-LET (BTL) and international mortgages range is below 4% since 2022. The two-year annual fixed interest rate for Advanced Converters dropped to as low as 3.74% at 60% LTV. BTL rate fell by 0.25%, while international mortgage rate fell by 0.09%. Lenders also lower fees, designed to attract responsibilities, buyers and converters with competitive pricing.
Halifax changes the rate of Remo products
Halifax announced interest rates for loan products that are still incurred by May 20. The two-year fixed interest rate for 0-60% LTV rose by 0.18% and the fixed interest rate for 0-75% LTV was 0.06%, both of which were £1,999 product fees. Five-year fixed interest rates for 0-60% and 0-75% LTV products increased by 0.15%. Customers must submit their application by 8 pm on May 19 to secure existing product codes. Earlier, Halifax HPI showed that the housing market was stronger.
Mortgage rates continue to trend downward this week: Monetary Facts
Mortgage rates continue to fall as twelve lenders lower fixed mortgage rates, according to Moneyfacts. The two-year fixed rate fell by 0.03% to 5.11%, the three-year fixed rate fell by 0.02% to 5.03%, and the five-year fixed rate fell by 0.02% to 5.08%. Major lenders, including Natwest, Virgin Money and Barclays, lowered interest rates, while some construction societies also lowered interest rates. However, the 10-year restoration remains the same at 5.47%. The market generally shows different actions.
Barclays’ latest lender to simplify affordability testing
Barclays became the latest lender to reduce burden-saving stress tests, allowing customers to spend up to £30,000 on home purchases. Relaxation standards apply to residential purchases and cashing apps. This is after similar moves nationwide, Natwest, Lloyds, Santander, Hodge and Accord. Barclays aims to help buyers with current challenges while maintaining strong repayment measures. The FCA has previously criticized lenders for being too cautious about first-time buyers’ loans.
Mortgage Strategy Award 2025 winners announced!
The 2025 Mortgage Strategy Awards ceremony was held at the JW Marriott Grosvenor House Hotel in London. The event, hosted by comedian Maisie Adam, celebrates outstanding companies and individuals in the mortgage industry. The judge faces a difficult task to select the winner from many highly praised entries. The ceremony respects all shortlisted participants and recognizes their achievements. Attendees helped make the night a memorable celebration, thus enhancing the award’s status as a highlight of the mortgage industry calendar.
National and RightMove launch property loan checks
The National Construction Association and RightMove have launched digital “Property Loan Checks” that allow home buyers to see if the property is eligible for mortgages before viewing. The tool assesses risks such as flooding or short-term rentals, aiming to save buyers time and stress. This feature is part of RightMove’s mortgage in Principles Services, aiming to speed up the home purchase process and provide clearer affordability information earlier.
