The hot stories of the week: National calls for government review of 4.5 times LTI CAPand Lloyds.
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Barclays UK hires Patel to lead mortgage, savings and insurance business
Barclays UK has appointed Jatin Patel to lead its mortgage, savings and insurance business. Patel has served 20 years of experience at TSB Bank, Lloyds, and most recently served as Chief Business, Digital and Marketing Officer at Hastings Group.
He replaced Mark Arnold, who retired after two years at Barclays UK, and served as CEO of Kensington Mortgages for seven years. Kensington’s former director of operations Allison Buckley became Kensington’s CEO and will report to Patel. Barclays UK CEO Vim Maru welcomed Patel on his custody of playing a good track record in customer-centric initiatives.
National government calls for review of 4.5 times LTI CAP
A nationwide call for a review of the loan-to-income mortgage cap to help more first-time home buyers. The current cap will not exceed 15% of loans with a revenue of more than 4.5 times the loan.
Nationally, this restricts responsible loans and points to its successful help in mortgage loans. However, regulators warn that relaxing lending rules could increase mortgage recovery. The Bank of England and the FCA call for debate on the risks and benefits of easing the cap.
HSBC launches less than 4% home loans
HSBC (HSBC) has launched a 3.98% fix for 60% LTV retweeted by first-time home buyers and home retweets, as well as other fixed rate cuts for new and existing customers. This is because Santander withdrew a similar offer last week as market swap rates rose.
HSBC also lowered interest rates on other residential and landlord mortgages, with 60% of LTVs falling to 4.19% for two-year renewals and five-year burdens down to 4.05%. HSBC’s move shows that competitive mortgage rates are still available despite the ongoing economic uncertainty.
Lloyds
Lloyds Banking Group has appointed Natasha Sayce-Zelem as Director of Digital and Commercial Platforms in its home business. Sayce-Zelem, who previously led the partner project for Prime Video at Amazon, will focus on digitizing the staking process to improve the customer experience.
She brings 18 years of digital expertise from Amazon, Sky and BBC roles. Sayce-Zelem will be based in Leeds and report to Andrew Asaam, the group’s mortgage director, who highlights her leadership skills as key to enhancing the customer experience and making a difference in the market.
FCA promises “bold brushstrokes” to cut the traditional Chinese tape festival
The FCA is accelerating efforts to reduce traditional Chinese tape festivals and simplify regulations. CEO Nikhil Rathi outlined proposals for support for growth, including simplifying collateral rules and removing outdated guidance.
The FCA aims to make fewer large-scale changes in its next strategy and emphasizes the trust relationship between regulators and companies. Rathi also noted that no other large-scale remediation incidents are expected, such as PPI.
Debate on the speed of “gradual” base rate cuts: MPC Dhingra
Bank of England policymakers should be gradually divided in terms of whether the basic reduction should be divided, some interpreted it as a quarterly cut. Swati Dhingra, a long-term pigeon, disagrees, stressing that gradual means 25 basis points every three months.
Since 2022, Dhingra has voted in favor of tax cuts, citing weak demand, a major reason for the UK’s economic struggle. As inflationary pressures increase, partly due to the increase in energy bills. Dhingra has been reappointed as the second term of the Monetary Policy Committee, which will last until 2028.
NATWEST offers 5.5x LTI loans
NATWEST has increased its loan-to-income (LTI) residential capital and interest mortgage limits, giving borrowers access to up to 5.5 times the income multiple.
A single or joint borrower who earns over £40,000 can reach up to 5 times LTI in loan-to-value (LTV) between 75% and 90%, while a person who earns over £75,000 (single income) or £10,000 (combined income) can get up to 5.5 times LTI.
These increases may be affordable and credit checks. This change is part of NATWEST’s ongoing efforts to improve access to borrowing. Other lenders, such as Marsden Building Society and TSB, have recently made similar adjustments.
Landlord production reaches 13 years high: Model
Paragon Bank reported that landlords’ rental yields were in December 2024, with the highest in March 2011. This marks a 6.72% increase in the third quarter of 2024, up 30 basis points compared to 2023. The growth is attributed to stable housing prices and increased rents due to high tenant demand, higher rents and limited rental supply. The highest yield was the highest in Wales (8.09%), Northwest (7.84%) and Southwest (7.75%), while the lowest rate in Greater London was 5.48%. Properties such as homes in multiple occupations (8.40%) and freehold neighborhoods (7.28%) provide the best returns.
Lisa 25% Withdrawal Penalty ‘needed to Change’: Martin Lewis
Martin Lewis called for a 25% withdrawal of the lifelong iSA (LISA) fine change, saying it was unfair, especially for those with lower financial backgrounds.
He spoke on the Finance Committee, deeming the fine as a 6.25% exit fee and preventing savers from getting their money. Lewis also suggested raising £450,000 in home purchase caps to reflect the rise in real estate prices and highlighted the lack of LISA understanding and availability of mainstream financial providers.
Brokers expect only two base interest rates to drop this year: Landbey
Mortgage brokers now expect interest rates to be lowered only twice in 2025 after exceeding expected inflation figures.
A Landbay survey showed that 54% of brokers predicted two cuts, while 26% expected one layoff. Only 14% believe there are still 3 cuts. Some brokers are even more pessimistic, with 4% forecasts not cutting and 2% expected to drop to 3.5%.
Landbay’s Rob Stanton noted that the Bank of England could make interest rates higher as inflation is higher than target and employment costs rise.
