Top headlines this week: Barclays launches fast remortgage service and Coventry boosts FTB borrowing with 6.5x income.
Explore these and other key industry updates below:
Barclays launches fast remortgage service
Barclays will launch its Fast-Track Remortgage service on September 7, offering eligible customers mortgage offers within 24 hours that are completed in less than five days.
The service aims to provide a faster alternative to product transfers, as research has shown that borrowers often find switching lenders slower and more difficult.
More than a million homeowners face a monthly mortgage rise of £283
More than a million homeowners face higher mortgage repayments after getting cheaper two-year fixed-rate deals, according to Compar the Market.
Some could see monthly payments rise by £283 to £1,432 if they move to the lender’s SVR, which could cost them more than an extra £3,000 a year.
Coventry boosts FTB borrowing with 6.5x income
Coventry brokers have increased support for first-time buyers by offering eligible customers loans of up to 6.5 times income, with loans available up to 95% LTV.
The lender also increased maximum value limits on newly built properties, including up to 95% for owner-occupied homes and 85% for apartments.
The Bank of England said mortgage borrowing fell sharply in July
Mortgage borrowing fell sharply in July, with net mortgage lending falling to £4.3bn from £7.7bn in June, according to the Bank of England.
Net home purchase approvals also fell to 56,100, while the effective rate on newly drawn home loans rose to 4.45% from 4.35%.
Paragon, Principality and HSBC are cutting interest rates
Paragon Bank has reduced its fixed rate buy-to-let rates by 0.15%, with rates starting at 3.40% across its basic and tailored ranges.
Principality Intermediaries has also reduced product transfer rates by up to 0.20%, while HSBC has cut rates across its first-time buyer, purchase and refinance ranges by up to 0.11%.
Gen H is promoting Palmer and Dockar’s departure
Gen H has promoted Sarah Palmer to chief distribution officer, Richard Livers to chief lending officer, and Andrew Mackey to chief financial officer.
Meanwhile, commercial director Pete Dukar will leave at the end of September after four years to join Principality Building Society as its new chief commercial officer.
Stamp duty deters millions from movers: YBS
Stamp duty is preventing millions from moving into their homes and holding up housing transactions, according to Yorkshire Building Society.
The bank estimates that restoring transaction levels to those seen in the early 2000s could generate an additional economic value of £66 billion over five years, with stamp duty cited as a significant constraint by up to 35% of potential movers.
Pressure on FTB affordability peaked after the credit crunch in June
First-time buyer affordability reached its worst level since the global financial crisis in June, with mortgage repayments reaching 22.6% of total income, according to UK Finance.
Despite affordability pressures and rising mortgage rates, total lending is expected to rise 4% to £300 billion in 2026, largely driven by resilient remortgage activity.
Pepper, Leeds, Keystone, April and Rely are making price changes
Pepper Money has reduced prices across its residential and buy-to-let ranges, with residential prices starting at 5.38% and BTL from 4.54%.
It has also launched a limited range of remortgages, while Leeds Building Society has reduced set rates; Keystone Property Finance raised interest rates by up to 0.25%, and Rely introduced new products for larger landlord portfolios.
YBS names Mather and Kettle in Homes division
Yorkshire Building Society has appointed Catherine Mather to lead residential mortgages and Sophia Kettle to head up the buy-to-let operation within its Homes division.
These appointments strengthen the senior leadership team, with Mather bringing experience in residential mortgage and conversion from NatWest and Kettle joining from LendInvest with experience in BTL and specialist lending.
