This week's Top 10 Stories in Mortgage Strategies
This week, we cover L&G's appointment of a new partnership director following Beardmore's departure, the FCA's plans to strengthen consumer tax reporting, and eight other important industry updates you need to know. 
L&G appoints Hyett Partnership Director following Beardmore's retirement
Legal & General Retail has announced that Natalie Hyett will replace Claire Beardmore as Partnership Director from February 2025. Hiett has been with L&G for five years now as Growth Director, holding a variety of roles across distribution, product, transformation and fintech investments. Managing director Ali Crossley praised Beardmore's leadership over the past four years, guiding the team through some difficult times. Beardmore expressed confidence that the team will continue to strengthen their partnership and hopes to remain connected even after his retirement.
FCA outlines improvements to companies’ consumer duty reporting
The FCA has outlined key improvements to companies' consumer duty reports after reviewing the first annual submissions from 180 companies. Five characteristics of great reporting include a focus on results, high-quality data, analysis of different customer types, clear processes, and a positive company culture. Areas for improvement include improved data quality, a comprehensive view of the entire distribution chain, customer type analysis, board-level challenges, and a clearer plan of action. The FCA highlighted the importance of detailed, evidence-based reporting with clear consequences for vulnerable customers.
Rayner defines planning review as 'building Britain'
Angela Ryder, Deputy Prime Minister and Housing Secretary, has outlined plans to overhaul England's planning decisions to tackle the housing crisis. Key measures include speeding up applications in line with local development plans, streamlining planning committees and introducing mandatory training for committee members. The government hopes these changes will bring greater certainty and efficiency and enable the construction of 1.5 million homes over five years. While the plan is ambitious, challenges such as high interest rates and consumer demand have led to skepticism from the industry.
Halifax includes EPC rating in maximum loan calculation
Halifax has announced that it will consider Energy Performance Certificate (EPC) ratings when calculating loan limits and will adjust loan amounts based on energy efficiency. Homes rated A or B have higher borrowing limits, while F and G rated homes have lower borrowing limits. EPC ratings from A to G affect your disposable income by affecting your energy bills. The changes will come into effect from December 10 and are in line with the government's pressure on lenders to make homes more energy efficient. It introduces a new approach to affordability and encourages borrowers to enhance their properties.
5-year revision marks biggest monthly gain since Aug. 23: Moneyfacts
Government plan sets council targets for 370,000 homes a year and five 'golden rules'
The UK Government has set Parliament a target of building 370,000 homes a year as part of the planning review outlined in the latest National Planning Policy Framework. This includes mandatory housing targets for councils, prioritization of brownfield sites and a review of green belt boundaries. The new “Golden Rule” focuses on affordable housing, infrastructure and social rent. The government aims to build 1.5 million homes over five years, but experts say it needs clear guidance, including supporting small-scale developers and addressing workforce needs to reach the ambitious goal. It emphasizes the importance of a strategic strategy.
Santander announces interest rate cuts for residential and BTL loans
Santander for Intermediaries has reduced most of its residential and buy-to-let (BTL) fixed interest rates by up to 0.23%. For remortgages, we have reintroduced a 60% LTV green fixed rate with a £0 product fee. For new businesses, options were offered on two-year fixed rates at 60% and 75% LTV with product fees of £749 or £0. Santander has added £250 cashback to 85% and 90% LTV purchase options and reduced fixed interest rates across a range of selected ranges. There were no changes to tracker fees.
House prices 'unaffordable' in all countries except Northern Ireland: ONS
Sesame Bankhall Group appoints new directors to executive committee
Sesame Bankhall Group (SBG) has appointed Claire Cherrington as DA Distribution Director, making it the fourth addition to its Executive Committee in 2024. Mr Cherrington, who spent more than 20 years at Lloyds Banking Group, will drive the growth of SBG's DA business and increase market share. She will report to CEO Richard Harrison and will support mortgage, protection and wealth businesses under the Bankhall and PMS Mortgage Club brands. Mr Cherington's appointment, scheduled for March 2025, is in line with SBG's ambition to become the UK's leading service provider to advisory firms.
House prices to rise 4% next year, interest rates to fall: Rightmove
Rightmove predicts that average asking prices will increase by 4% in 2025, creating a buyer's market as competition among sellers intensifies. In addition, the base interest rate will be lowered four times, and it is expected that both two-year and five-year fixed interest rates will be lowered to about 4% by the end of the year. The average five-year interest rate was expected to converge at 4.83% and the two-year interest rate at 5.08%. Rightmove had expected 1.15 million transactions as more homes become available and future stamp duty changes, but this year will see mixed market conditions due to changes in mortgage rates.
