Top stories this week: NatWest and Santander join FCA’s AI testing scheme The average age of first-time buyers has risen by 2 years since the pandemic.
Explore these and other key industry updates below:
NatWest and Santander join FCA’s artificial intelligence testing program
NatWest, Santander and several other firms have joined the FCA’s new AI live testing scheme, which provides tailored regulatory and technical support to help safely develop and deploy artificial intelligence in UK financial services, particularly in areas such as financial advice, debt resolution, customer engagement and complaints handling.
The scheme aims to strengthen governance and risk management while helping regulators understand the future impact of AI on markets, and although the Financial Ombudsman Service recently wrote off £900,000 of an abandoned AI project, a second tranche is due to launch in January 2026.
Learn about the 2026 MS NextGen cohort
We received a number of outstanding entries from some very talented and impressive candidates, with roles spanning across the industry.
Following a rigorous shortlisting and candidate selection process supported by the Mortgage Advice Bureau and our sponsors, we are delighted to announce the final cohort of students for the Class of 2026.
HSBC UK expands FTB cashback and cuts interest rates
HSBC UK has expanded and increased its cashback offer for first-time buyers, with incentives now ranging from £500 to £2,000, with higher rewards for energy-efficient homes, while also introducing cashback for the first time on more low LTV products and preferential rates.
Meanwhile, the bank has cut interest rates by up to 0.12 percentage points on more than 100 remortgages and conversion products as part of its wider push to make home buying more affordable and support sustainable, responsible lending.
Vickers Young joins Stonebridge
Vickers Young, a Leicestershire-based mortgage and protection company founded in 2012, joined the Stonebridge network after leaving the Mortgage Advice Bureau, citing the need for a partner more aligned with its long-term growth plans.
The firm currently has a team of 12 and aims to recruit up to 12 consultants per year, with both parties emphasizing shared ambition, continued independence and Stonebridge’s support for scaling the business.
Average age of first-time homebuyers rises two years since pandemic
The average age of first-time buyers has risen from 32 to 34 in England and to 35 in London since before the outbreak, as rising house prices, large deposits and tight rental costs make buying a home more difficult.
Despite home ownership holding steady at 65%, renters are spending a much higher proportion of their income on housing, saving around £36,500 for a deposit and are increasingly delaying purchases with longer mortgage terms and smaller deposits, raising concerns about affordability and the risk of negative equity.
L&C Mortgages names Payne chief operating officer
L&C Mortgages has appointed Dan Payne as chief operating officer, reporting to managing director Sidney Wager, who brings more than 20 years of financial services experience, including senior roles at Together Money and Fluent Money Group.
Payne will focus on process optimization and enhancing customer experience, while supporting the company’s distribution strategy and continued growth as L&C aims to strengthen its position as the UK’s leading mortgage partner.
FOS writes off £900,000 over abandoned AI tool
The Financial Ombudsman Service has written off £900,000 on scrapped document identification AI tools as part of a £3.5m spend on its data strategy for 2024/25, after deciding to abandon a large in-house technology initiative in favor of an off-the-shelf solution.
Liberty OS said the writedown reflected changes made as part of a major modernization effort, including continued investment in artificial intelligence and technology to increase efficiency and support its long-term reform plan.
Major UK banks pass Bank of England stress test
The major British banks have all passed the Bank of England’s latest stress test, indicating that they have sufficient capital to withstand a severe but reasonable economic downturn, including a 28% drop in house prices, a peak unemployment rate of 8.5%, and an increase in interest rates to 8%.
In this scenario, the UK banking system’s average CET1 capital ratio fell from 14.5% to a low of 11.0%, but is still around £60bn above the minimum requirement, meaning no bank needs to strengthen its capital position.
Banks including NatWest, Nationwide, Barclays and Lloyds said the results confirmed their strong and resilient balance sheets, while separate data from the Bank of England showed net mortgage borrowing fell to 4.3 billion pounds in October, down from 5.2 billion pounds in September.
Pivotal Growth acquires Xact Mortgages
Pivotal Growth has acquired Solihull-based Xact Mortgages, a fast-growing new build and conservation broker established in 2007, to strengthen its position in the industry.
Xact, which has a team of seven consultants and strong developer relationships in the Midlands and beyond, will join Pivotal’s new-build division, led by Daniel Mumford, with both companies emphasizing their shared goals of growth and innovation, following Pivotal’s acquisition of Believe Money Group earlier this year.
Nationwide launches lowest fixed rate since September 2022 at 3.58%
Nationwide has slashed fixed mortgage rates, with the current lowest rate at 3.58%, the first time it has been below 3.60% since September 2022, for first-time buyers, home movers and remortgagors with loan-to-value of up to 95%.
First-time buyers can also receive £500 cashback, or up to £500 cashback through the Energy Efficient Homes Green Bonus, as Nationwide says it continues to focus on delivering more competitive house prices below 4%.
