This week’s top news headlines: LSL appoints Nowosad as interim managing director Up to 100,000 previously unsold homes could be left empty.
Explore these and other key industry updates below:
Nationwide and Virgin Money are raising interest rates by up to 35 basis points
Nationwide and Virgin Money are increasing selected mortgage rates by up to 35 basis points from July 16, reflecting some recent rate cuts as finance costs rise.
Industry experts say rising swap rates, driven by renewed geopolitical tensions, have prompted lenders to repricing, although mortgage rates remain below the highs seen earlier this year.
LSL appoints Nowosad as interim Managing Director
LSL Financial Services has appointed Piotr Nowsad as interim managing director while it searches for a permanent successor to Richard Howells, who will leave at the end of the 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 raises interest rates by up to 34 basis points
Barclays, Coventry Building Society and GenH are increasing select residential mortgage rates as higher swap rates raise 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 interest rate cuts, with more lenders expected to reprice them in the coming weeks.
Up to 100,000 unsold former rental homes could be left empty: Hamptons
The pace of landlords selling rental properties has slowed, with landlord purchases outpacing sales for the first time since 2019, according to The Hamptons.
However, the agency warns that the Tenants’ Bill of Rights could prevent up to 100,000 unsold homes from returning to the rental market due to new leaseback restrictions, while rents continue to rise as market conditions improve for landlords.
NatWest intends to raise fixed interest rates as tensions in the Middle East worsen
NatWest is increasing fixed residential mortgage rates by up to 17 basis points from July 17, joining Nationwide, Virgin Money, Barclays, Coventry Building Society and Gen H in raising rates as funding costs rise.
Industry experts say rising swap rates, driven by renewed geopolitical uncertainty, have put an end to the latest wave of mortgage interest rate cuts, with some borrowers facing significantly higher monthly payments.
MPs warn that the industry may have had a major influence on the Treasury’s plan
MPs have criticized the government’s financial inclusion strategy as incomplete, warning that it lacks basic data on who is being financially excluded and relies heavily on volunteer work in the industry without clear measures of success.
The Treasury Committee also raised concerns that industry voices may have had more influence than consumer groups, and urged ministers to strengthen the role of people with lived experience in shaping future policy.
Barratt Redrow Burnham calls for cutting taxes and unleashing housing delivery
Bharat Ridro has called on the incoming Prime Minister to cut taxes and reduce regulation to improve housing provision, warning that rising costs and policy pressures are impacting viability.
The housebuilder also announced a £400m shareholder returns program after completing 17,667 homes this year, while warning that geopolitical uncertainty could lead to higher construction costs.
Fixed rates see biggest monthly reduction since October 2024: Moneyfacts
Average fixed mortgage rates fell for the second month in a row, with two- and five-year deals recording their biggest monthly declines 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 slow further interest rate cuts.
Nationwide reduces combined income eligibility to £75,000
Nationwide has reduced the income threshold for joint applicants for mortgages by up to six times income, cutting the requirement from £100,000 to £75,000.
The move comes shortly after the lender increased Select mortgage rates, with experts saying the change reflects increasing competition among lenders to improve affordability options for borrowers.
Market Harborough acquires £120m portfolio from Gen 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, while Gen H says the deal ensures its customers remain with a lender that shares its focus on responsible lending and mutual values.
