Top 10 Stories of the Week in Mortgage Strategies
Notable developments this week include Vida Home Loans gaining a banking license and changing its name, alongside Knight Frank's prediction of a £140.3m shortfall in UK stamp duty. It will be done. Find out the latest in these and other key industries in our comprehensive Top 10 roundup below. 
Vida Homeloans receives banking license and changes name
Vida Homeloans has announced that it has received authorization from the PRA and FCA to become a fully licensed bank and will operate under a new name, Vida Bank. This banking license will enable Vida to offer retail deposits, strengthening its capital base and expanding its customer services. The move is aimed at strengthening the company's competitive position in the specialist mortgage market. CEO Ansu Mooney highlighted the importance of the license, which opens up new growth opportunities and supports the launch of Vida's first savings product.
UK faces £140.3m stamp duty shortfall: Knight Frank
Knight Frank reported an estimated stamp duty shortfall of £140.3m due to a decline in property transactions of more than £5m. The shortfall is thought to be due to a decrease of 107 sales between £5 million and £10 million, and a decrease of 35 sales over £10 million. This loss follows uncertainty around wealth and asset taxation, especially after the government proposed changes to a non-Dom regime. The shortfall was measured by comparing the projected offer and the actual offer from March to October 2024. In the 2023/24 financial year, £11.6 billion was collected in stamp duty.
Budget 2024: Right to Buy discount falls, social rent rises
In the Autumn Budget 2024, Finance Minister Rachel Reeves announced cuts to the Right to Buy discount, which will reduce the amount council tenants can save on the purchase of a home. Local authorities will retain the proceeds from these sales to reinvest in social housing. The Government will also consult on increasing rents for social tenants to ensure long-term financial stability for providers. The budget included a £500m investment to build 5,000 new social homes. The changes are aimed at increasing the supply of affordable housing, despite concerns about equity.
Santander lowers BTL affordability
On November 20, 2024, Santander reduced the affordability of buy-to-let (BTL). The lender has reduced its standard affordable rate from 7.31% to 7.15%, while the affordable rate for five-year fixed and pound-for-pound remortgages has been reduced from 5.31% to 5.15%. This follows recent interest rate increase announcements, including increases of up to 0.29% to some standard residential fixed rates on purchase, mortgage and green products, as well as increases to fixed rates on large loans and new builds.
Starmer ignores responsibility for rising mortgage rates
Budget 2024: OBR raises mortgage rate and house price forecasts
Inflation in October rises more than expected to 2.3%: ONS
UK inflation rose more sharply than expected in October, reaching 2.3%, mainly due to higher household utility bills. This was up from 1.7% in September. Although a rise was expected, the 2.3% figure exceeded market expectations. The Bank of England recently cut its benchmark interest rate to 4.75%, but rising inflation makes further cuts unlikely. Experts warned that this was likely to delay rate cuts and keep mortgage rates high, impacting borrowers in the coming months.
Industry reacts to October inflation figures
Inflation rose to 2.3% in October from 1.7% in September, dampening hopes that the Bank of England would cut interest rates further this year. Higher-than-expected sales were boosted by rising household utility costs. Experts currently predict no further rate cuts in 2024, and financial markets say a December rate cut is unlikely. Analysts have warned that inflation and government spending measures could keep mortgage rates high for a longer period of time, but some remain optimistic that the property market will remain strong in the coming months. .
eKeeper starts as finova broker
finova Broker, formerly eKeeper Group, was launched under the finova brand to support the brokerage sector. The platform offers a CRM system with features such as digital communications, credit checks, and customizable workflows to streamline operations and increase profitability for brokers. Enhancements include lead validation, customer journey improvements, communication automation, and more. Additionally, we integrate finova Payment Mortgage Services (fPMS) for faster payment processing and customized technology solutions. Commercial Director Matt Harrison emphasized that the launch is focused on empowering brokers and increasing efficiency.
Cash buyers secure discounts of up to £86,000
Cash buyers had secured discounts of up to £86,000 on properties, while sellers were offering lower prices to avoid mortgage complications. Lomond Estate Agency research found that the average asking price for properties listed as 'cash buyers only' was £257,513, 17% or £52,059 below the local sales price. In some areas, such as Yorkshire and the South East, cash buyers received significant discounts. Lomond CEO Ed Phillips noted that the cash buyer position continues to hold significant value in the market.
