This week’s top stories: Government to sign reforms giving leaseholders greater home control, and Barclays becomes latest lender to launch sub-4% mortgage rates.
Explore these developments and more below:
Govt to sign reforms giving leaseholders greater home control
The UK government is introducing reforms to give leaseholders more control over their buildings and service charges, including removing the requirement to pay freeholders’ legal fees when making a Right to Manage claim. These measures, part of the Leasehold and Freehold Reform Act 2024, will be implemented ahead of schedule on 3 March.
Housing Minister Matthew Pennycook stated the changes will help leaseholders take control more affordably while tackling excessive charges. This comes as service charges rose by 11% in 2024, outpacing inflation. Further reforms, including removing ownership rules for lease extensions, were pushed through last month.
Barclays becomes latest lender to launch sub-4% mortgage rates
Barclays is reducing rates across its residential purchase and remortgage products, with some falling below 4%, effective from 13 February. Notable cuts include its five-year fixed green home mortgage dropping to 3.99% and a two-year fixed remortgage rate reduced to 4.20%. A new five-year fixed product at 3.99% will also be introduced.
Meanwhile, Santander became the first major lender this year to offer sub-4% rates on two- and five-year residential mortgages, also effective from 13 February.
FOS chief becomes fourth watchdog head to suddenly quit post
Financial Ombudsman Service chief executive Abby Thomas has unexpectedly stepped down after less than two years in the role, amid government concerns that excessive regulation is stifling financial sector growth. Deputy chief ombudsman James Dipple-Johnstone and chief finance officer Jenny Simmonds will temporarily fill her roles.
Thomas is the fourth regulator head to resign following the Chancellor’s warning in November about over-regulation. Her departure follows similar exits at the Competition and Markets Authority and Homes England, reflecting broader regulatory shifts.
Martin steps down from TMA role
Lisa Martin will step down as DA development director at TMA later this month amid internal restructuring within LSL Group, which will see teams merging.
LSL’s managing director of financial services, Richard Howells, thanked Martin for her dedication, while Martin expressed gratitude to brokers for their support, viewing the changes as a positive step for future opportunities.
NatWest, Paragon Bank and Fleet Mortgages make rate cuts
NatWest, Paragon Bank, and Fleet Mortgages have all announced mortgage rate cuts, continuing a trend of reductions among major lenders. NatWest has lowered rates by up to 36bps across its remortgage and purchase products, including green mortgages.
Paragon Bank has cut 30bps from its two-year fixed BTL range, offering rates from 3.34% for energy-efficient properties. Fleet Mortgages has reduced five-year fixed rates by up to 25bps across its HMO and MUFB products, aiming to improve affordability for landlords. These reductions reflect a broader market shift towards more competitive mortgage offerings.
Govt in digital homebuying pilot, Rayner says ‘no excuses’ not to build homes
The government has unveiled plans to digitise housebuying processes to reduce transaction delays, aiming to cut the average five-month wait by enabling better data sharing between professionals. HM Land Registry will lead pilot projects to digitise property information, following Norway’s model, which has reduced transaction times to one month.
Meanwhile, Deputy Prime Minister Angela Rayner reaffirmed Labour’s pledge to build 1.5 million homes in five years, urging councils to plan for 370,000 homes annually. Critics warn progress is too slow, with Propertymark stressing the need for swift legislative action to meet housing targets.
Lord Sharkey demands SFO investigation into Co-op Banking Group
Lib Dem peer Lord Sharkey has called for the Serious Fraud Office to investigate Mortgage Agency Services Number 5 (MAS5), formerly part of the Co-operative Banking Group, over its treatment of mortgage prisoners.
The Financial Ombudsman Service found that MAS5’s four standard variable rate (SVR) increases between 2009 and 2012, which added 2.76%, were not justified by rising funding costs, contradicting what customers were told.
Lord Sharkey is also pressing the Labour government for a response to the LSE report, funded by Martin Lewis, which outlines solutions for mortgage prisoners facing financial and personal hardship.
Santander launches sub-4% rates on two- and five-year resi mortgages
Santander has become the first high-street lender this year to offer sub-4% fixed mortgage rates, cutting rates by up to 0.40% across more than 80 products. From 13 February, new two- and five-year fixed residential purchase and remortgage deals at 3.99% (60% LTV) will be available.
Buy-to-let options have also been expanded with new 65% LTV products. Experts see this as a major move, potentially sparking a mortgage price war, though some caution that wider market conditions may limit similar reductions from other lenders.
Vida Bank appoints Sinclair as chair
Vida Bank has appointed Stuart Sinclair as its new chair, succeeding Steve Haggerty after nine years in the role. Sinclair, a former CEO of Tesco Bank and GE Capital UK, brings extensive experience from senior roles at RBS, Lloyds, and TSB. His appointment follows Vida securing its banking licence in November.
Haggerty will remain a non-executive director until September 2025. Last month, Vida Homeloans launched a 97% LTV mortgage range to support first-time buyers and long-term renters.
Quilter hires Bray as mortgage distribution director
Quilter Financial Planning has appointed Zara Bray as distribution director for its mortgage network. Bray joins from Legal & General Mortgage Club, where she held roles such as head of strategic accounts and regional sales manager over her 20-year tenure.
At Quilter, Bray will lead the strategy for the firm’s mortgage and protection offerings, reporting to managing director Stephen Fryett. She replaces Charlotte Nixon, who moved to Aviva earlier this year. Bray aims to support the business’s growth while ensuring top-quality support for mortgage and protection advisers. Quilter’s mortgage network advises on over £20bn of lending annually.
