This week's Top 10 Stories in Mortgage Strategies
This week: Nationwide predicts a “shaky” start to 2025, with TSB and HSBC announcing interest rate changes across their services. 
National forecasts start to become 'unstable' until 2025
Nationwide predicted a “unstable” start to 2025 due to upcoming stamp duty changes, but predicted house prices would rise between 2 and 4 per cent. Robert Gardner, the bank's chief economist, said the changes would lead to a spike in trading in early 2025, particularly in March, followed by a slowdown similar to that seen with previous stamp duty adjustments. . Despite affordability challenges, home prices remained resilient in 2024. Gardner highlighted the challenges of the mortgage market, where interest rates are high and affordability is difficult for many prospective buyers.
TSB and HSBC reveal rate changes across ranges
TSB has announced a series of interest rate changes across housing, product transfers and additional borrowings. For home loans, two-year fixed mortgage rates for 80-85% LTV have been reduced by up to 0.25%. Five-year fixed mortgage rates at 75% LTV decreased by 0.05%. TSB also made similar reductions in product transfers and additional borrowings. HSBC has announced interest rate cuts for first-time buyers, reducing two-year and five-year fixed fee saver rates at 60%, 70% and 75% LTV, while increasing interest rates at higher LTVs.
Industry reaction to the Bank of England's interest rate hold
The Bank of England's Monetary Policy Committee left interest rates unchanged at 4.75%, following two rate cuts at the beginning of the year. Industry reaction was mixed, with some predicting a rate cut in 2025. Ross Turrell of CHL Mortgages said recent interest rate cuts have buoyed the mortgage market, but inflation concerns make an immediate rate cut unlikely. Market Financial Solutions' Paresh Raja suggests the market is stronger than it was a year ago, while My Mortgage Angel's Sam Lindsay predicts interest rates will gradually decline in early 2025. I expected that.
Mortgage lending expected to increase by 11% in 2025: UK Finance
FCA's vulnerability research plan is 'not surprising': MorganAsh's Gething
Morgan Ash's Andrew Gething said the FCA's plans to review how firms deal with customer vulnerabilities was “not surprising”. This followed the FCA's review of 180 companies' consumer duty annual reports, which focused on outcomes, data quality, customer analytics and culture. Gething highlighted concerns that companies are under-reporting their vulnerable customers and called on companies to proactively assess their vulnerabilities beyond financial factors. He emphasized the importance of good data and technology to ensure compliance, and stressed that vulnerability monitoring should be a shared responsibility between manufacturers and brokers.
Skipton International's Coupe CEO to retire in 2025
Skipton International CEO Jim Coupe has announced that he will retire in 2025 after 15 years with the company. He will remain in his role until the summer, and a search for his replacement is underway. Coupe joined the company in 2009 as commercial director before becoming managing director and CEO in 2023. He has been instrumental in the company's growth, particularly after the 2009 merger. Skipton Group CEO Stuart Hare praised Mr Coupe's contribution and said he was the driving force behind Skipton International's success in the mortgage and savings market.
UK housing market to beat expectations in 2024: Halifax
The UK housing market outperformed expectations in 2024, supported by lower mortgage rates and strong wage growth, Halifax said. Property prices hit a record high of £298,083, with annual growth of 4.8%. Although transaction volumes returned to pre-pandemic levels, affordability remained a challenge for many buyers. Halifax expects home price growth in 2025 to be moderate, between 0% and 3%, and transactions to increase slightly. Uncertainty remains high due to the economic environment. Buyers may act quickly to avoid expected stamp duty increases.
Bank of England keeps interest rates unchanged at 4.75%
News analysis: Conditional sales cause outrage
Mortgage brokers have expressed concern about the increasing practice of conditional sales by real estate agents. As a result, prospective buyers will not be able to view the property without consulting the real estate agent's in-house advisor or lawyer. This has caused stress and confusion for borrowers and, in some cases, incorrect advice for borrowers who have been approved for a mortgage. Brokers claim the practice has worsened in recent days, despite previous warnings and laws. Contingent sales have led to higher costs for borrowers, and many advisers are now advising their clients to avoid agent-suggested advisers.
Finova strengthens senior leadership team
Finova has announced changes to its senior management team, with Parag Dave taking over from executive chairman to chief executive officer of the expanded company. In addition, Rowan Clayton, who contributed significantly to product development for 14 years at Finova, has been promoted to Chief Product Officer. Dave emphasized the company's focus on innovation and sustainable growth as it seeks to enhance its technology solutions for lenders and savings providers. With the support of Bain Capital Tech, Finova is well-positioned to meet the challenges of an evolving industry.
