This week's top stories: National Call for Government Review of 4.5x LTI Capand Lloyds hires an Amazon Prime veteran to “reimagined” his home loan.
Explore these developments and more below. 
https://www.youtube.com/watch?v=-jxpdytkzpw
Barclays UK hires Patel to lead the mortgage, savings and insurance business
Barclays UK has appointed Jatin Patel to lead the mortgage, savings and insurance business. Patel has brought over 20 years of experience in serving as Chief Commercial, Digital and Marketing Director for TSB Bank, Lloyds and more recently Hastings Group.
He will replace Mark Arnold, who retired two years from Barclays UK and has been retired for seven years as CEO of Kensington Mortgage. Alison Buckley, formerly the operational director at Kensington, becomes CEO of Kensington and reports to Patel. Barclays UK CEO Vim Maru welcomed Patel, citing his strong track record in customer-facing initiatives.
National Call for Government Review of 4.5x LTI Cap
Nationally, we are seeking reviews of mortgage caps on loans to help more first-time buyers. The current cap limits loans to less than 15% of loans above 4.5 times.
Nationwide argues that this points to limit responsible lending and successful support mortgages for that support. However, regulators have warned that loosening lending rules could lead to an increase in mortgage foreclosures. The Bank of England and the FCA are seeking discussions on the risks and benefits of easing the cap.
HSBC launches a 4% mortgage
HSBC revised its 4% mortgage by 3.98% with other fixed rate reductions for new and existing customers with a five-year revision of 3.98% on 60% LTV for first-time buyers and home movers. This follows Santander withdrawing a similar offer last week due to rising market exchange rates.
HSBC also reduced mortgage rates for other homes and landlords. This included a 60% LTV dropping to 4.19% over two years, and a five-year re-export store to 4.05%. The HSBC move shows that competitive mortgage rates remain available despite continued economic uncertainty.
Lloyds hires an Amazon Prime veteran to “reimagined” his home loan
Lloyds Banking Group has appointed Natasha Sayce-Zelem as Director of Digital and Business Platforms within Homes Business. Sayce-Zelem, who previously led Amazon's Prime Video partner engineering, will focus on digitizing the mortgage process to improve the customer experience.
She brings 18 years of digital expertise from her roles at Amazon, Sky and the BBC. Sayce-Zelem is based in Leeds and will report to Andrew Asaam, Group Mortgage Director. AndrewAsaam highlighted her leadership as the key to improving the customer experience and highlighting the market.
FCA cuts the deficit with promises of “bold strokes”
The FCA is speeding up efforts to reduce red tape and simplify regulations. CEO Nikhil Rathi outlined proposals to support growth, including simplifying mortgage rules and removing outdated guidance.
The FCA aims to reduce large-scale changes in its next strategy, highlighting the relationship of trust between regulators and businesses. Rathi also pointed out that no further mass rescue events such as PPI were expected.
Discussion of “staged” basic rate pace: MPC dingra
Bank of England policymakers are split on whether the base rate reduction should be staged, and some people interpret it as one cut per quarter. Longtime pigeon Swati Dingra disagreed, stressing that progressive things don't necessarily mean 25 basis points every three months.
Dingra has been voting for rate cuts since 2022, citing weak demand as a major cause of the UK's economic struggle. This occurs as inflationary pressures rise due to increased energy costs. Dingra was reappointed to the Monetary Policy Committee for a second term that continues into 2028.
Natwest offers 5.5 times the LTI loans on mortgages
Natwest has increased income (LTI) restrictions on housing capital and interest mortgage loans, allowing borrowers to access up to 5.5 times the income multiples.
A single or co-borrower who earns over £40,000 and borrows 75% to 90% per loan (LTV) can earn up to five times the LTI, while those who earn £75,000 (only income) or £100K (co-income) can access up to 5.5 times the LTI.
These increases will be affected by affordable prices and credit checks. The change is part of NatWest's ongoing efforts to improve access to borrowing. Other lenders, such as the Marsden Building Society and TSB, have been making similar adjustments recently.
Landlord wins 13-year high: Paragon
Paragon Bank reports that landowners' rental yields since March 2024 have reached 6.93%. This is up from 6.72% in the third quarter of 2024, up from 30 basis points compared to 2023. The highest yields were found in Wales (8.09%), northwest (7.84%) and southwest (7.75%), while Greater London was the lowest at 5.48%. Real estate such as houses in multiple occupations (8.40%) and freehold blocks (7.28%) produced the highest revenue.
LISA 25% withdrawal penalty “change required”: Martin Lewis
Martin Lewis is calling for a change to a 25% withdrawal penalty for Lifetime ISAS (LISAS), which calls it unfair, especially for people from financially uneducated backgrounds.
Speaking in front of the Treasury, he claimed the penalty would serve as a 6.25% exit fee, discouraging savers from accessing their money. Lewis also proposed raising a £450,000 cap on home purchases to reflect rising property prices, highlighting the lack of understanding and availability of LISA from mainstream financial providers.
Brokers are hoping for two more base rate cuts this year: Landbay
Now, mortgage brokers are only looking for two more interest rate cuts in 2025, following higher than expected inflation data.
A study by Landbay showed that 54% of brokers predicted two cuts and 26% predicted one cut. Only 14% thought that three cuts were still possible. Some brokers were more pessimistic, with the 4% forecast not being reduced at all, and the 2% expected to fall to 3.5%.
Landbay's Rob Stanton pointed out that the Bank of England could maintain its fees for longer as it exceeds its target and exceeds employment costs.
