This week's Top 10 Stories in Mortgage Strategies
This week, Nationwide and Virgin Money joined the recent wave of lender rate hikes, with Santander announcing a series of adjustments across its services. Check out these updates and more in our top 10 roundup below. 
Nationwide and Virgin are the financiers of recent interest rate hikes.
Nationwide and Virgin Money have both increased mortgage rates. Nationwide is adjusting interest rates on a range of its fixed rate and tracker products, including a 0.25% cut on its two-year tracker in response to the Bank of England rate cut. However, some fixed rate products saw an increase of up to 0.20%. Virgin Money has increased interest rates by up to 0.25% on a range of products including buy and sell, mortgages and transfers of goods. These changes reflect current market conditions and recent interest rate movements.
Santander outlines significant interest rate changes across range
The City of Santander has increased the majority of fixed interest rates for residential and rental properties (BTL) by up to 0.31% since November 12th. However, the tracker rate will be reduced by 0.25% to reflect the Bank of England's recent benchmark rate cut. The standard variable interest rate will also be reduced by 0.25%. Existing customers on the Basic Rate Tracker or Standard Variable Rate will see their rates reduced starting December 3rd. In addition, the deadline for new business and product transfers will be extended by one month.
Santander, HSBC and TSB raise interest rates despite central bank rate cuts
Santander, HSBC and TSB have increased mortgage rates from November 12, despite the Bank of England recently cutting interest rates to 4.75%. TSB has increased fixed interest rates for two and five years by up to 0.30% for first-time buyers and movers. Santander has increased interest rates on some fixed home products, large loans and new construction. HSBC also announced an interest rate hike. Experts suggest that rising swap rates, lender funding costs and market trends are behind the rise even after the base rate fell.
Trump victory could have positive impact on UK housing market: SLE
Donald Trump's recent US presidential victory could have a positive impact on the UK housing market, according to Specialist Lending Expo panellists. Steve Cox of Fleet Mortgages highlighted the important presence of US investment in the UK, particularly in the securitization market. A strong US economy could attract further investment into the UK, benefiting sectors such as specialist lending. But concerns were also raised about potential risks from tariffs and defense spending. The impact of President Trump's policies on the UK remains unclear.
Product options hit biggest downturn in nearly 18 months: Moneyfacts
Options for mortgage products fell 3.7% in November, the largest decline since July 2023, according to Money Facts. The total number of products was reduced to 6,402, reflecting market uncertainty. The average shelf life for mortgage products has fallen from 21 days in October to 17 days. Despite the downturn, product availability remains higher than in November 2022. Two-year fixed and tracker mortgage rates rose slightly, while five-year rates rose modestly. Experts are warning of rising interest rates next year and advising borrowers to act before they return to higher rates.
Metro Bank fined £16m by FCA
FCA to unveil plans to 'radically reshape' Name and Shame
The FCA will address concerns raised by industry groups and publish revised 'Honour and Shame' proposals within the next week. Initially met with strong opposition, the new approach would require increased notification of companies under investigation and limit disclosure to exceptional cases. FCA chief executive Nikhil Rati acknowledged concerns about the destabilization of companies under investigation, but stressed the need for transparency. The revised plan will be submitted to the FCA Board in early 2025 following discussion in a House of Lords committee.
Lenders withdraw loans below 4% amid 'longer-term high interest rate' environment
Despite the Bank of England's recent benchmark interest rate cuts, major UK financial institutions including Barclays and NatWest have withdrawn all fixed rate mortgages below 4%. This follows similar moves by Santander, HSBC, Nationwide and TSB as lenders adapt to a “higher and longer term” interest rate environment. The central bank's latest outlook suggests that rate cuts may slow due to global economic pressures, including inflation concerns and U.S. trade threats. Allied Irish Bank is currently the only major financial institution offering interest rates below 4%.
Mortgage foreclosures rose 56% in third quarter: Ministry of Justice
Mortgage foreclosure claims rose 56% to 6,525 in the third quarter of 2024, returning to pre-pandemic levels, according to Ministry of Justice data. This follows a trend of increased foreclosures since 2021, but remains below pre-COVID-19 levels. Landlord foreclosures rose 2% to 25,418. The median length of time a mortgage goes into foreclosure fell from 57.8 weeks to 43.9 weeks. Property Mark's Nathan Emerson highlighted the continued economic pressure on homeowners, particularly first-time buyers, and called for more housing and financial relief.
Barclays outline rates rise across range
Barclays will increase mortgage rates across its range from November 14. Key changes include increases from 3.96% to 4.30% for two-year fixed home purchase products and from 4.12% to 4.44% for five-year fixed. Remortgage rates increase from 4% to 4.34% for a two-year fix and from 4.18% to 4.50% for a five-year fix. Buy-to-let rates are also rising, with the two-year fixed rate increasing from 5.28% to 5.38%. Barclays cited recent changes in swap rates as the reason for the jump.
