This week's top stories include Nationwide and Rightmove launching real estate lending checks and Knight Frank is expected to raise its home price forecasts as base rate reductions are expected to support demand.
We'll dive into these and more important updates below. 
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National and Right-Committee Launch Property Loan Check
Nationwide and RightMove launched a digital “property lending check” feature to help home buyers assess mortgage eligibility before they view the property. The tool assessed risks such as flooding and short leases and provided real-time lending possibilities. Previously, buyers only knew the amount of borrowing, not the property-specific eligibility. The initiative aims to streamline the UK real estate market and reduce delays. Experts praised this feature to prevent late stage mortgage denials. RightMove planned to further enhancements, and across the country called it a natural progression from raw material tools.
Knight Frank lifts housing price forecasts as a “basic” demand for basic interest rate reductions
Knight Frank raised its UK home price forecast to 3.5% in 2025, up from 2.5%, citing the expected base rate cuts as the main demand driver. The Bank of England's rate cut to 4.25% and further easing market forecasts have boosted market confidence. Halifax reported a price increase of 0.3% each month in April. Supply was tight and rental forecasts also increased slightly. Knight Frank predicted cumulative price growth of 22.8% over five years.
National latest to adjust stress rates after FCA clarification
Nationally, following FCA guidance, we reduced mortgage stress fees by 1.25 points to allow lenders to rate affordable prices for product fees rather than lending. This change has allowed borrowers, particularly first-time buyers using help hand schemes, to an average of over £28,000. However, the Bank of England's income rate on 15% loans limited the impact. Experts praised the move, but called for broader regulatory reforms to further ease the affordability constraints.
Modifications for the average 2-year period since 2022 will drop to the lowest rate: MoneyFacts
The average 2-year fixed mortgage rate for May 2025 fell to 5.18%. This is the lowest since September 2022, but the five-year revision has dropped to 5.10%. MoneyFacts reported that the decline in swap rates has driven reductions and narrowed the gap between short-term and long-term transactions. Product availability increased to 6,993, the highest since 2007, but the expiration date has been reduced to 19 days. Experts pointed out that options for first-time buyers have improved, but warned that borrowers may prefer longer revisions among market volatility.
New rules for agents to be enforced tomorrow
The new rules require agents to be able to screen all landlords and tenants against the UK financial sanctions list came into effect on May 14, 2025. Non-compliance risked a £1 million fine. Goodroad warned that many landlords feel unprepared for the changes. Mandates apply to landlord guidance and tenant post office.
Perenna updates credit line with Abn Amro
Perenna Bank has renewed and expanded its £200 million warehouse credit facility at ABN Amro, extending its contract until July 2026. Based on the April 2024 partnership, it aims to help Perenna grow in the UK mortgage market. COO Colin Bell said the funding will allow for increased loans for innovative products that address the affordability of homes. The move has strengthened Perenna's mission to expand homeownership opportunities through flexible funding solutions.
Halifax reduces rates including two-year revisions at sub-4%
Halifax lowered its mortgage rate on April 22, 2025, introducing a two-year fixed interest rate of less than two years at 3.94% (60% LTV, £999 fee). Lenders also reduced the five-year revision to 4.27% (80% LTV, £99 fee) and 4.38% (80% LTV, no fee). 90-95% LTV's two-year product fell to 5.15%, down 0.19% (no charge). This reduction has made Halifax one of the most competitive lenders on the market for both home buyers and Remalt Gager.
L&C Mortgages employs CRM solutions from one mortgage system
London & Country Mortgage implemented a single mortgage system CRM solution on May 13, 2025 to streamline operations and enhance customer service. A fully integrated system has improved broker workflow efficiency and data management. OMS CEO Dale Jannels praised L&C's reputation, while L&C's CEO Mark Harrington highlighted the flexibility to meet the needs of the platform. This partnership aims to optimize internal processes and improve customer experience through technological innovation.
Barclays starts its lowest rate at 3.85% this year, while Principalitivatial reduces Resi and JBSP rates
Barclays launched its lowest 2025 rate at 3.85% on May 12, cutting multiple products including fee-free rimmut (4.18%, 19bps down) and green mortgages (4.08%). The Principality also reduced housing fees by up to 0.21% thanks to JBSP cuts, including 0.20% in two years of 75% LTV transactions. The move has intensified competition as Barclays' five-year revision fell to 3.99%, with the principality trimming cashback products and showing a wider decline in market rates.
Opinion: FCA's latest CP makes consumer obligation nonsense
Sebastian Murphy argued that the FCA's CP25/11 proposal to remove mandatory mortgage advice requirements risked undermining the principles of consumer obligations. The May 13, 2025 Opinion Peace warned that the change was endorsed by lenders seeking to reduce broker involvement and put consumer protection at risk. Murphy highlighted the overall role of advisors in identifying risks such as protection gaps and affordability issues. Despite the recent emphasis on the quality of advice, consultations have prioritized cost reduction over appropriate outcomes, appearing to harm both the consumer and the advice sector.
