This week’s top news headlines: More than a quarter of landlords plan to leave the market and Burnham pledges to submit rent bill before Christmas.
Explore these and other key industry updates below:
The government’s new FTB scheme is for borrowers with just a 2.5% deposit
The government is scheduled to launch Your first home Scheme in next month’s Budget, allowing eligible first-time buyers to purchase new homes with just a 2.5% deposit alongside a 20% government-backed equity loan.
The scheme can halve the upfront deposit required compared to a traditional 5% deposit, but advisers highlight the need to consider long-term affordability, new build pricing, maximum ownership, and how to finance the remaining 2.5%.
More than a quarter of landlords plan to withdraw from the market: spare room
SpareRoom research found that 27% of landlords in England are planning to leave the rental market, while 36% are reducing their portfolios and less than 4% are expanding.
The findings come as 78% reported a lack of confidence in the rental market following reforms to the Tenants’ Bill of Rights, with smaller landlords in particular likely to exit and concerns growing about reduced rental supply and rising rents.
Burnham pledges to submit rent bill before Christmas
The Prime Minister has pledged to introduce the Shared Ownership and Leasehold Reform Bill before Christmas, promising more protections for leaseholders, including capping current land rents and making shared ownership the default for most new flats.
The commitment comes after years of belated reforms, with the National Campaign for Letting welcoming the proposed legislation but urging the government to bring about real change and stronger regulation of estate agents.
Barclays withdraws market-leading deals and raises interest rates by up to 30 basis points
Barclays is raising interest rates by up to 30 basis points across 85 residential and buy-to-let products, with many market-leading reforms moving below 5% above 5%.
The changes include a 60% fix to the two-year LTV rising from 4.75% to 5.05%, as wider lender repricing continues to pressure the availability of mortgage rates below 5%.
Nationwide for brokers to raise interest rates by up to 21 basis points
Nationwide for Intermediaries will raise its fixed and tracker interest rates by up to 21 basis points from 30 September across its purchase and remortgage, first-time buyer, move-in and existing customer ranges.
The changes leave only one fixed rate under 5% for new customers, a 4.99% two-year fixed rate at 60% LTV, as lenders continue to reprice and average fixed rates approach 6%.
Halifax Intermediaries has become the latest lender to raise mortgage interest rates
Halifax Intermediaries will raise capped mortgage interest rates by up to 15 basis points from October 2, impacting home relocation, first-time buyer, remortgage, product transfer and additional progression bands.
The move is the lender’s sixth interest rate change since September 1, adding to a wider wave of lender repricing that leaves fewer fixed-rate deals below 5% available.
LSL has appointed Mercer as Sales Director for Primis and TMA Club
LSL Financial Services has appointed Paula Mercer as Sales Director for Primis and TMA Club, bringing over 18 years of financial services experience from roles at LendInvest, Atom Bank and Lloyds Banking Group.
Mercer will focus on recruiting new companies and supporting growth across Primis, while strengthening lender relationships and strengthening TMA partnerships.
Barclays raises interest rates for the second time during the week – some jumping by 40 basis points
Barclays is raising mortgage rates for the second time this week, increasing 62 products and repricing 46 deals for the second time.
Some products have now risen by as much as 40 basis points since Monday, including a 60% LTV fixing over two years for purchase, which has moved from 4.75% to 5.15%, as the lender continues to repricing across its ranges.
Al-Tawuniya reduces the transfer period and Barclays fees are adjusted
Brokers Co-operative Bank is reducing the window to transfer products from six months to four months before a borrower’s current deal expires, bringing it in line with Coventry Building Society and other lenders.
Meanwhile, Barclays is changing how product fees are applied to existing customers, with interest only accruing once the new rate kicks in, meaning borrowers who cancel before then will not be charged the fee or interest.
TSB and Virgin Money raise interest rates again
TSB and Virgin Money are set to raise mortgage rates again, with TSB increasing selected product transfer rates, residential and buy-to-let property rates by up to 30 basis points, alongside additional borrowing rates rising.
Virgin Money will raise interest rates across its purchase, remortgage and transfer product ranges, with increases of up to 20 basis points, as lenders continue to reprice their mortgage books.
