This week's Top 10 Stories in Mortgage Strategies
This week saw reports that Rachel Reeves plans to scrap the stamp duty threshold cut for first-time buyers, and Goldman's prediction that the bank rate will reach 2.75% by November 2025. Let's take a closer look at Sachs' upward revisions. Details can be found below. 
Reeves to scrap lower FTB stamp duty threshold: report
Chancellor of the Exchequer Rachel Reeves is poised to scrap the minimum stamp duty threshold for first-time buyers (FTBs), which was originally set at £425,000 in Liz Truss' mini-budget. Reeves is expected to confirm in his next budget announcement on October 30 that the measure, which has benefited homebuyers since September 2022, will not be extended beyond its March deadline. The decision could cost FTBs up to £2,500 and is expected to generate £1.8bn a year in revenue by 2029-30, with a particular impact on affordability in London and the South East.
Goldman Sachs raises forecast for bank interest rate, expected to reach 2.75% by November 2025
Goldman Sachs has revised upward its forecast for the Bank of England's benchmark interest rate, now predicting it will fall to 2.75% by November 2025, down from an earlier forecast of 3% by September 2025. The adjustment came as the UK inflation rate fell to 1.7%. This is below the World Bank's target of 2%. The investment bank expects the Monetary Policy Committee to enact a series of rate cuts, possibly starting from 5% to 4.75% at its next meeting on Nov. 7.
Inflation cooling is 'faster than expected': Bank of England's Bailey
Bank of England Governor Andrew Bailey announced that inflation is falling “faster than expected” and is currently at 1.7%, the lowest level in three-and-a-half years. But he cited the possibility of structural changes and expressed uncertainty about whether inflationary pressures have completely disappeared from the economy. Governor Bailey's remarks at the IMF and World Bank meeting in Washington DC are expected to increase market expectations for a rate cut at the World Bank meeting on November 7th, with interest rates cut by 4.75%. There is an 89% chance that it will.
Dynamo for Intermediaries and Next Intelligence Mortgage Club merge
Dynamo for Intermediaries and Next Intelligence Mortgage Club are merging to create an integrated platform aimed at enhancing services for mortgage brokers. The newly formed Next Intelligence will be managed by Cat Armstrong and sales will be overseen by Louise Perry. The merger combines the strengths of both clubs – Dynamo's 4,000 members and Next's 3,500 members – and is aimed at streamlining the provision of mortgages, protection and general insurance. This integration is expected to provide more resources and dedicated support for advisors choosing a variety of financing options.
LSL hires Martin as marketing director
LSL Financial Services has appointed Laura Martin as its new Marketing Director. Martin joins from Sesame Bankhall Group, where he developed brand strategy and broker education initiatives. He has over 20 years of experience in financial services and has also worked at Together, Aldermore and Platform. Emma Hollingworth, Group Chief Distribution Officer at LSL, expressed her enthusiasm for Ms Martin's appointment, highlighting her award-winning marketing background and the value she brings to strengthening support for advisor firms across the group. emphasized.
HSBC and Aldermore announce interest rate and product changes
HSBC will adjust interest rates on its mortgage products from tomorrow, with increases and decreases across a range of categories, including two-year and five-year fixed rates for existing customers switching, first-time buyers, movers, remortgages and buy-to-let homes. Implementation (BTL). Notable changes include 2-year fixed mortgage rates dropping to 85% and 90% LTV, while moving company 5-year fixed mortgage rates increasing to 60%, 70%, and 75% LTV. Contains. Aldermore City has also introduced new BTL mortgage rates, offering landlords a competitive fixed option.
Stamp duty receipts raised as attention focuses on Prime Minister
UK stamp duty revenue rose to £8.6bn from April to September 2024, an increase of £900m on the previous year. This comes as Chancellor of the Exchequer Rachel Reeves is expected to announce whether the temporary stamp duty threshold will be extended in the next Budget. Otherwise, homebuyers could face a significant tax increase from March 2025 onwards, with the average bill potentially rising from £2,978 to £5,478. Experts warn that ignoring these standards could lead to market distortions as buyers rush to complete deals.
Rayner to double social housing construction with £1bn budget increase: report
Angela Rayner plans to double social housing construction in England with around £1 billion in support in her next budget. Around 11,000 council homes are built each year, but more than 23,000 are lost to demolition or conversion, and this initiative aims to address a critical housing shortage. The funding will support Labor's aim to build 1.5 million homes over five years. In addition, Rayner plans to reduce the right-to-buy discount because sales last year significantly outperformed alternatives. The measure is seen as important to cushion rising housing benefit costs.
Chancellor outlines £50bn investment increase in budget 'reset': report
Rachel Reeves, the Chancellor of the Exchequer, is set to announce a £50bn investment boost in her next budget, which she describes as a “reset” for the UK's economy. This includes proposed changes to debt rules that would allow for increased spending on infrastructure projects. Mr Reeves aims to address a £22bn shortfall left by the previous government, while avoiding real cuts to public services. Experts warn that such large spending could lead to inflationary pressures, although mortgage rates are expected to fall, providing relief for borrowers.
IHT rises 10% to £4.3bn as budgets focus: HMRC
Inheritance tax (IHT) receipts for the six months to September 2024 rose 10% to £4.3bn, driven by increased wealth transfers and rising property values, HMRC said. The surge has led to speculation about possible changes to next week's budget, potentially tightening exemptions related to business and farm relief to generate additional revenue. From 2009 onwards, the zero rate standard was frozen and more properties became subject to IHT. Experts expect significant reforms as the government addresses growing concerns about these taxes.
