Luxury House Reaction: Work to Build a “Dynamic” Financial Culture Starts Now – Mortgage Strategy
The mortgage industry widely welcomed the prime minister’s luxury home speech last night, where she said: “In so many areas, regulations still act as the boots of the business’s neck”.
Rachel Reeves (pictured) said in a comment to New York City that she has carried out ongoing reforms in mortgages, retail investments, capital markets, regulations, pensions and banking, the equivalent of “the most extensive reform package of financial services regulation in more than a decade.”
She has asked the Financial Conduct Authority to review how consumer obligations apply to wholesale financial companies to see “whether it affects wholesale activity too much.”
However, Reeves welcomes the Financial Policy Committee’s review of the “overall level of bank capital required for financial stability in the UK”, which will report to her by the end of the year.
She also promised the government “meaningful reforms” of the British bank ringtones, which separates lenders’ retail and investment operations.
Banks have long complained that this has led to a pool of undercapitalized funds.
National CEO Debbie Crosbie said: “The Prime Minister has formulated a wide range of reforms to develop that will be well received in financial services in the UK.
“This includes welcome news for the housing market, with the Prime Minister confirming that the plan has greater flexibility in higher loan-to-income loans.”
Santander UK home director David Morris also welcomed the packaging, adding that the bank could lend to 5,000 first-time home buyers given the loan-to-income limit for large lenders.
It was said nationwide that it expanded its help to help mortgage loans yesterday, which aims to first-time home buyers and loans at up to six times the income. Mutual aid says that this will make it covered for an additional 10,000-foot FTB loan per year.
Morris of Santander added: “Given our focus on the FTB market, we have further updates on the train, which can support over 5,000 first-time home buyers, and we will continue to research that can help aspiring homeowners, given the potential for more than 15% restrictions.”
But Morris of Santander went on to point out that Labour’s focus on building new homes is key to unlocking the housing market.
“While the change in loan-to-income flows helps ensure there is still a strong pipeline in demand, supply must also be a rapid attitude, and we welcome initiatives that respond to the growing demand for housing stocks from the growing population, such as the government’s ambitious 1.5 million new homes, which will ensure adequate real estate is maintained there,” Morris said.
Ben Thompson, deputy chief executive of the Mortgage Advisory Bureau, hopes to provide more help to tenants who want to own their own home later this year.
Financial Conduct Authorities are conducting a second review of the mortgage market, which is intended to report in the fall.
“While it is disappointing to see more support for the rental market in the form of past performance payments, we hope to develop further in the fall.
“Our recent research highlights the great potential and strong purchasing appetite in the rental market, with 56% of UK tenants saying they will buy their first home if the mortgage is consistent with the rent.”
But, Hargreaves Lansdown’s head of currency and markets, Susannah Streeter, warned of the hard work of competing with financial markets around the world, they all hope to get rid of more than a decade of anemia growth.
Streeter said: “By fostering a culture of retail investment, making the UK market a more attractive place to go public and helping UK companies get important funding, these reforms will help build a more dynamic and equitable financial ecosystem.
“Competition with the power of New York is not easy, but as the industry continues to collaborate, these changes should provide more momentum for growth and innovation engines.”
