Top story of the week: Trump’s tariffs raise the prospect of England’s 2025 cuts, high fees, marketing and consulting quality are the focus of FCA’s brokers. Explore these developments and more:
https://www.youtube.com/watch?v=6daxz_xkrli
Trump’s tariffs raise prospects for four-trending England in 2025
After U.S. President Trump announced tariffs on multiple countries, the market expected the Bank of England to quadruple the interest rate this year due to concerns about a global trade war.
Stock markets responded sharply as the FTSE 100 declined, analysts warned of economic disruption. The money market now expects bank interest rates to drop by 80 basis points, while traders will drop 4.75% to 4.50% this week.
Economic data remain weak, with growth and inflation below targets strengthening forecasts by Goldman Sachs and Deutsche Bank, which could cut multiple tax rates.
BOE rate reaction: warning signal causes cutting
The Bank of England’s monetary policy committee voted 7-2, lowering the base interest rate by 0.25% to 4.5% amid signs of weak economic conditions, with two members preferring to cut the rate by 0.5%. Although domestic inflation pressures are easing, inflation is expected to rise to 3.7% next year and growth expectations have been downgraded.
Analysts predict further reductions in interest rates, with the market pricing this year at 3 times. The move is expected to support the housing market and provide relief to mortgage holders, while lenders have begun adjusting the interest rates for the decision.
High fees, marketing and advice quality for FCA brokers
Financial conduct authorities will monitor mortgage brokers for stressful sales, excessive expenses and consulting quality over the next two years, emphasizing the need to embed consumer responsibility guidelines.
Regulators stressed concerns about affordability assessments, the applicability of secured loans, and conflicts of interest driving a high-pressure sales culture. It urges companies to review incentive plans, ensure fair expenses and provide balanced financial promotion.
Furthermore, it warned of the need to exploit dormant designated representatives of regulatory status. The FCA will continue to review market practices with a particular focus on improving customer vulnerability management.
MAB’s goal is to double market share, while Mulls moves to FTSE
The Mortgage Advisory Bureau aims to double its market share and revenue while considering moving from alternative investment markets to FTSE-250. The company hopes that the shift will attract a wider range of investors and enhance its image.
Prior to its capital market day, the MAB plan outlines new capital allocation standards and hopes to maintain or increase its dividend. CEO Peter Brodnicki highlighted the company’s decade-long growth and a major expansion commitment to shareholders and stakeholders in the coming years.
Tenant rights bills move to the entire stage
Renters’ Bill of Rights is moving forward in parliament, and Stevenage’s Baroness Taylor confirmed his commitment to the entire House committee for further review.
The bill, introduced within the first 100 days of the new Labour government, proposed major reforms, including a prohibition of Section 21 no-fault evictions, limiting rent increases to once a year, and extending decent housing standards to private rental sectors for the first time.
Rob Jupp shares the turmoil of losing first business
Brightstar Group CEO Rob Jupp opened his first business during the 2008 credit crisis, which left him worried that he could not pay the mortgage or his son’s tuition.
Speech Two Russell PodcastsJupp recalls how his subprime lender, OFM Group, grew to 150 employees and then lost 92% of its business in a month, forcing the Savills Plc to sell at a price of less than £100,000, down from the previous £40 million offer. He reflects psychological losses, regrets his concerns about bottling him, and how he uses his family equity to rebuild with Brightstar.
Halifax and Barclays’ major speed cuts and Leeds’ repetitions
Halifax lowered the price transfer rate by up to 30 basis points, which will further increase tomorrow, while increasing some payment rates. Barclays can reduce interest rates up to 25bps in various residential transactions, including a two-year 85% LTV mortgage of 4.79%.
The Leeds Building Society lowered the fixed rate of selected residential properties by up to 15bps and introduced new first-time buyer products, but increased rates for purchases, shared ownership and other professional loans. Some Leeds rates will also be withdrawn, and their current range is available until midnight.
Peers call on FCA to extract “name and shame” program
The House of Lords committee has urged financial conduct to authorize the abandonment of its “name and shame” program, which will allow companies to publicly identify in the investigation.
The committee criticized the FCA’s consulting process as a failure and believed that the supervisory authority had not justified its current policy of naming companies only in exceptional circumstances.
Concerns include potential reputational damage to companies and market instability, and peers warn that the move contradicts the government’s aim to promote competition in the financial sector. The FCA said it will review the report before deciding on the next step.
Santander extends ERC’s new product exemption to 9 months
Santander has extended early repayment fees for existing home mobile machines to nine months, up from the previous six months limit. If the customer borrows the same amount or more, the exemption will apply and the fee will be paid in full; if they have a small loan, it will only apply to the new loan amount.
This change affects the home and the purchase borrower. Mortgage applications filed at 10 pm on February 2 will not be affected, but mortgage applications filed at 6 AM on February 3 will follow the new policy. Any material changes applied after this date will also be evaluated under the new terms.
Banco Santander says UK banks are “not for sale”
Ana Botin, global head of Banco Santander, dismissed the report that the bank is considering selling its UK business, noting: “No sale in the UK.” This is followed by speculation that Spanish lenders may be exploring due to dissatisfaction with ring regulations after 2008 Strategic choices including exit from the UK.
Botin stressed that the UK remains a core market, which has led to the diversification and profitability of banks. Santander UK, which serves 14 million customers, has a mortgage book worth £170 billion, will continue to be a key part of the bank’s strategy.
