The hot stories of the week: FCA defends Finfluencer prosecution record and Mortgage and property surge in Q1.
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FCA defends Finfluencer prosecution record
The Financial Conduct Authority (FCA) has strengthened efforts to combat Finfluencers and financial crime, especially to protect vulnerable, low-income consumers from misleading online advice.
FCA chief Nikhil Rathi highlighted the growing impact of social media on financial decision-making, with 36% of adults using it for consultation, noting that court delays and limited resources have hindered prosecutions despite thousands of harmful promotions being canceled.
The FCA is working with international regulators and large tech companies, and despite inconsistent cooperation, the burden of monitoring usually falls on the FCA. Rathi also highlights the importance of financial education and the potential role of building social and commonality in improving public understanding of financial risks.
Mortgages and property surge in Q1: BOE
UK mortgages surged 50.4% to £77.6 billion in early 2025, driven in part by changes in stamp duty, but the Bank of England data showed a different picture.
Despite rising lending and high loan borrowing, signals will increase market confidence and appetite for risk, with reduced relief and property rising to its highest level since 2019.
Despite the slight decline in debt, overall affordability remains a problem. Analysts noted that the market’s recovery is encouraging and fragile due to economic uncertainty and volatile interest rates, borrowers and lenders are cautious.
FCA Chiefs accept risk factors, but no “chill effect” on mortgage innovation
Prime Minister Rachel Reeves’ push to alleviate business regulations and relax lending rules has raised concerns about consumer risks, but the FCA insists that innovation is booming.
During the Select Committee hearing, FCA Chairman Ashley Alder and CEO Nikhil Rathi acknowledged the challenges facing balancing accessible advice with affordability, noting that most consumers still lack adequate guidance. Although government-led growth efforts have promoted scrutiny of potential harms, the FCA insists that its focus is on simplification rather than enlargement.
Rathi dismissed the claim that regulations such as consumer obligations hinder innovation, highlighting the rise in high LTV mortgages to prove lenders remain active and adaptable.
Join the 10th reception to promote higher LTI restrictions
Architectural association leaders including Stuart Haire of Skipton and Robin Fieth of BSA attended Downing’s street reception as co-interaction continued to lobby for higher loan-to-income (LTI) restrictions.
Currently, only 15% of new residential mortgages can exceed 4.5 times the borrower’s salary, but nationwide, reciprocal people like Skipton and Yorkshire believe this limits loans for aspiring homeowners. They urged the Finance Committee to raise the cap to 20% and potentially make thousands of homes buy.
While the FCA is conducting extensive consultations on mortgage reform, both the FCA and banks in England have warned that relaxed LTI rules may have the potential to exacerbate collections and home price inflation.
Prime Minister says homeowners’ £39 billion housing investment transformation
Prime Minister Sir Keir Starmer and Prime Minister Rachel Reeves announced a 10-year milestone of £39 billion investment to promote social and affordable housing, positioning it as the biggest commitment of a generation.
The aim is to provide 1.5 million homes by 2030, the funding has almost increased previous annual spending levels, including £1.5 billion in infrastructure and £1.2 billion in skills training each year.
Industry figures welcome the move, citing increased supply and economic stability, but warn that local planned resources are still under pressure. Critics warn that delays could still hinder delivery without ambitious financial commitments.
Yorkshire’s “Most Effective” Building Society: Target Groups
Yorkshire Architecture Association is rated as the most effective mutual assistance in the UK by the software provider target group based on the assets of each employee.
The analysis comes from annual reports, which cover nearly £55 billion in assets and a society of more than 30,000 employees, found that each employee in Yorkshire had an asset of £28.3 million, up from the Tier 1 average of £20 million.
Although larger societies are expected to benefit from economies of scale, the goal highlights wide gaps and suggests that digital transformation is a key factor. Some smaller societies outperform larger competitors, highlighting the importance of technology investment in improving productivity and ensuring long-term competitiveness of the industry.
Creditors lower 2-year and 5-year interest rates at smaller profit margins: monetary facts
Mortgage rates were slower in June, but slower, with average five- and five-year fixed rates falling to 5.12% and 5.09% according to MoneyFacts.
The number of available collateral products fell slightly to 6,843, while the average shelf life fell to 17 days, reflecting the rapid turnover of the market.
Tracker rates have also dropped below 5% for the first time since early 2023, and changes in stress testing may help more first-time buyers qualify. Despite the reduction rate, competition is still strong, especially at higher loans to value levels.
Standard Living Housing Financing Will Exit Lifetime Market for More2Life Transfer
Standard Life Home Finance will exit the lifetime mortgage market starting July 6, with its HorizoReaption product will integrate it into More2Life’s products on July 7.
The Horizon series (including free fee, fee and interest reward programs) will be available as a unique product line under More2Life.
This move simplifies the structure of the group while retaining product diversity. More2Life said the shift improves efficiency and clarity among consultants as lifelong loans fell by 11.6 per cent per year to £2.3 billion in 2024. Existing Standard Living clients will continue to be supported as usual.
Government to fall to more than 40% of the 1.5 million target: Savills
Savills predicts that the UK will build about 840,000 homes over the next five years, 42% of the government’s 1.5 million target. The shortage is due to a decline in plans, a weak demand for new homes and a shortage of skilled builders.
Although recent program reforms and government investment in training may adequately increase output to 1.2 million homes, pipelines remain restricted. New home completions fell 6.5% as of March 2024, and the continued decline agreed by the plan suggests that this downward trend is likely to last for two years.
Harrison rejoined as Regional Account Manager
Co-appointed Sadie Harrison as the new regional account manager for the intermediary sales team. With 25 years of industry experience, Harrison rejoined after five years. She will support network and club partners in regulated and unregulated finances.
Harrison highlighted her passion for market changes to the company, including upcoming leasing reforms and EPC regulations, aimed at helping them understand shared roles and customer solutions together. Her career includes roles in Cheltenham and Gloucester, running her own brokerage, Northern Rock, Lloyds Banking Group and TSB.
