This week’s most important news: LSL appoints Nowosad as interim director and up to 100,000 unsold ex-rental properties could remain empty.
Discover these and other important industry updates below:
Nationwide and Virgin Money will increase interest rates by up to 35 basis points
Nationwide and Virgin Money will increase selected mortgage rates by up to 35 basis points from July 16, reversing some of the recent price cuts as borrowing costs rise.
Industry experts say higher swap rates, driven by renewed geopolitical tensions, have prompted lenders to revise prices, although mortgage rates are still below the highs of earlier this year.
LSL appoints Nowosad as interim director
LSL Financial Services has appointed Piotr Nowosad as interim director while it searches for a permanent successor to Richard Howells, who will leave at the end of this month.
Nowosad will oversee Primis, TMA Mortgage Club, Novium and Linear, with a focus on improving advisor productivity, investing in technology and strengthening partnerships across the business.
Barclays will increase interest rates by up to 34 basis points
Barclays, Coventry Building Society and Gen H are raising rates on selected residential mortgages as higher swap rates drive up funding costs, although Barclays is also cutting some buy-to-let deals by up to 15 basis points.
Industry experts say recent geopolitical tensions have slowed the pace of mortgage rate cuts, with more lenders expected to adjust prices in the coming weeks.
Up to 100,000 unsold ex-rental homes could remain vacant: Hamptons
According to Hamptons, the pace at which landlords are selling rental properties has slowed, with landlord purchases exceeding sales for the first time since 2019.
However, the agency warns that the Renters’ Rights Act could prevent up to 100,000 unsold properties from returning to the rental market due to new reletting restrictions, while rents continue to rise as market conditions for landlords improve.
NatWest will increase fixed interest rates as tensions rise in the Middle East
NatWest will increase rates on selected fixed residential mortgages by up to 17 basis points from July 17, joining Nationwide, Virgin Money, Barclays, Coventry Building Society and Gen H in raising prices as borrowing costs rise.
Industry experts say rising swap rates, driven by renewed geopolitical uncertainty, have halted the recent wave of mortgage rate cuts, with some borrowers facing noticeably higher monthly repayments.
MPs warn that the industry may have had too much influence on the Treasury plan
MPs have criticized the government’s Financial Inclusion Strategy as incomplete, warning that it lacks key data on who is financially excluded and relies too heavily on voluntary action from the sector without clear measures of success.
The Finance Committee also raised concerns that industry voices may have had a greater influence than consumer groups, and urged ministers to strengthen the role of people with real-world experience in shaping future policy.
Barratt Redrow calls on Burnham to cut taxes and free up housing supply
Barratt Redrow has called on the next Prime Minister to cut taxes and reduce regulation to improve housing development, warning that rising costs and policy pressure are affecting viability.
The housebuilder also announced a £400 million shareholder return program following the completion of 17,667 homes in the year, while warning that geopolitical uncertainty could drive up construction costs.
Fixed rates see biggest monthly drop since October 2024: Moneyfacts
The average fixed mortgage rate has fallen for the second month in a row, with two- and five-year deals recording the biggest monthly decline since October 2024, according to Moneyfacts.
Mortgage availability has also improved, with 976 products returning since May, although experts warn that renewed geopolitical uncertainty could delay further rate cuts.
Nationwide reduces joint income entitlement to £75,000
Nationwide has lowered the income threshold for joint applicants to access mortgages up to six times income, reducing the requirement from £100,000 to £75,000.
This move comes shortly after the lender increases selected mortgage rates. Experts say the change reflects growing competition among lenders to improve affordability options for borrowers.
Market Harborough acquires £120 million portfolio from General H
Market Harborough Building Society has acquired a £120m residential mortgage portfolio from Gen H, covering first-time buyers and borrowers with more complex circumstances.
The acquisition supports Market Harborough’s growth strategy, with Gen H saying the deal will ensure its customers remain with a lender that shares its focus on responsible lending and mutual values.