This week’s top headlines: Strong move after FCA rule change and Rayner returns to role of housing secretary.
Discover these and other important industry updates below:
Increase in switching following FCA rule change: Stonebridge
New FCA affordability rules are helping more borrowers switch to a new mortgage provider rather than sticking with their existing provider. Stonebridge research shows that 98% of amended affordability assessments were used for external refinancing in the first quarter of 2026.
The changes have enabled borrowers to take out larger loans at lower interest rates, with advisers playing a key role in helping customers access better deals.
Barclays, Halifax, HSBC and TSB will increase interest rates by up to 20 basis points
Major lenders, including Barclays, Halifax, HSBC, TSB and Skipton, are increasing selected mortgage rates by up to 20 basis points as rising swap rates continue to drive up borrowing costs.
Industry experts expect further rate revisions in the coming days, warning that continued geopolitical tensions and inflationary pressures reduce the likelihood of rate cuts in the near term.
Rayner returns to the role of Housing Minister
Angela Rayner has returned as Housing Minister in Prime Minister Andy Burnham’s new cabinet, replacing Steve Reed after less than a year in the role.
Her appointment comes as Burnham prioritises housing, with plans to accelerate house building and deliver the largest social housing building program since the post-war era.
NatWest monitors price increases by major lenders
NatWest is increasing interest rates on selected residential and buy-to-let mortgages by up to 20 basis points from tomorrow, joining a wave of major lenders repricing their products this week.
While most lenders are raising rates in response to higher borrowing costs, Shawbrook has bucked the trend with some cuts, although Keystone has also increased select buy-to-let rates.
Santander becomes the latest lender to jack up prices
Santander is increasing fixed mortgage rates for its new business and most product transfers will start from July 22, as it expands its product offering with new 10-year fixed deals and additional new build options.
Accord Mortgages is also increasing rates on many residential and buy-to-let properties, although some residential products will be reduced, while Newcastle for Intermediaries has relaunched its joint mortgage offering for sole traders.
Santander UK’s mortgage portfolio will increase by £35.7 billion following the TSB deal
Santander UK’s mortgage portfolio grew by £35.7 billion to £204.7 billion following the acquisition of TSB, making it the UK’s fourth largest mortgage lender.
The bank reported strong lending growth, with gross mortgage lending reaching £14.7 billion in the first half of 2026, while mortgage arrears remained low and asset quality remained high.
FOS appoints new CEO and ombudsman
The Financial Ombudsman Service (FOS) has appointed Jenny Simmonds as permanent CEO and James Dipple-Johnstone as permanent Chief Ombudsman, following an open recruitment process.
The pair have led the organization through a period of reform, including digital improvements, changes to compensation and efforts to modernize the UK’s redress system.
Burnham makes first speech as PM, Reed resigns as housing secretary
Andy Burnham has become Britain’s new Prime Minister and has promised to publish a 10-year plan for Britain later this year, including a renewed focus on house building and increasing council housing delivery.
The move follows the departure of Steve Reed as Housing Secretary, with industry figures calling for clear plans to tackle housing shortages and meet the government’s target of 1.5 million homes.
Vida launches Next Chapter Lending
Vida has rebranded its later life mortgage offering as Next Chapter Lending, introducing updated criteria to support older first-time buyers, home movers and borrowers with mortgages that extend into retirement.
The changes provide clearer guidelines for broker affordability, including how income is assessed around retirement and a maximum mortgage term ending before age 86.
Finova promises ‘no more resets’ with one-click AI software
Finova is launching an AI-powered tool that allows brokers to submit mortgage applications through lender portals without manually re-entering customer data.
The technology aims to reduce administration, minimize errors and free up time for advisors by automatically transferring information from broker systems, while final approval remains with the user.