This week’s top stories: Fleet Mortgages has announced a number of criteria changes, and the Financial Conduct Authority has pulled its ‘name and shame’ plan.
Explore these developments and more below:
Lenders will eat into brokers’ market share: Ami
Outgoing AMI chief Robert Sinclair has warned brokers that lenders will increasingly seek to take market share through direct mortgage offerings, despite brokers currently handling 87% of mortgages.
As lenders invest in technology to streamline processes and reduce reliance on intermediaries, Sinclair cautioned against complacency. He also highlighted a major remortgage opportunity in 2024, with £500bn in total lending expected as 1.8 million home loans end their current deals.
Brokers must actively engage clients to retain business, as many product transfers currently bypass them. Sinclair’s departure marks the end of his long tenure as a strong advocate for mortgage intermediaries.
Fleet confirms number of criteria changes
Fleet Mortgages has introduced several criteria changes to enhance flexibility for landlord borrowers. It will now accept TR1 forms to expedite Day One remortgages, removing the need to update the Land Registry until completion.
The lender will also consider both satisfied and unsatisfied CCJs, up to £500 if satisfied within three years and up to £250 if unsatisfied. Additionally, the minimum floor area requirement has been lowered from 35 to 30 square metres.
Fleet plans to announce further criteria changes soon, reinforcing its commitment to supporting advisers and landlords with more adaptable lending options.
Ami opens nominations for board posts
The Association of Mortgage Intermediaries (AMI) has opened nominations for board positions, which are re-elected on a three-year cycle. This year’s elections cover mortgage club, regional, two network vacancies, and the Association of Finance Brokers. Eligible firms can nominate senior management members, with contested elections set for 22 April.
Results will be announced on 2 April unless a vote is required. AMI chief executive Stephanie Charman encourages members to participate in shaping the intermediary profession.
Nominations must be submitted by 31 March to stephanie@a-m-i.org.uk
FCA pulls ‘name and shame’ plan, pauses other ongoing work
The FCA has scrapped its ‘name and shame’ plan after strong industry opposition and criticism from the House of Lords. It will maintain its policy of only publicizing investigations in exceptional cases.
However, the regulator will proceed with transparency measures, including confirming firm-announced probes and issuing warnings about unregulated firms.
It has also paused work on diversity, inclusion, and non-financial misconduct, aligning with the government’s push to ease regulation. The shift follows Chancellor Rachel Reeves’ call to reduce red tape and recent high-profile regulatory departures.
Payment Systems Regulator scrapped in drive to cut red tape
The Payment Systems Regulator will be abolished and merged into the FCA to streamline regulation and reduce red tape, Prime Minister Keir Starmer has announced. He argues the current system is too complex, slowing business growth.
The FCA will take over key responsibilities, with chief executive Nikhil Rathi supporting the move as a step toward clearer, more efficient oversight.
Starmer says this aligns with his government’s pro-growth agenda, while industry voices caution that deregulation must not compromise financial stability.
Habito launches accelerator programme for broker firms
Habito has launched an accelerator programme for mortgage broker firms aiming to scale and exit. Led by CEO Ying Tan, it offers access to Habito’s tech, tools, and leadership insights.
Three firms will be selected, with applications open until March. Participants will also gain connections to major lenders and be part of Habito’s growth as it explores mergers and acquisitions.
Tan calls it a “game-changer,” emphasizing innovation and community. Having built and exited Dynamo, he brings fintech investment experience to Habito, where he became CEO in 2023.
HSBC cuts SVR, eases home loans for international customers
HSBC has reduced its standard variable rate on residential mortgages to 6.74% from 6.99%, the lowest since January 2023. The bank has also relaxed its lending criteria for international customers, aligning policies with UK residents. Now, if at least one applicant has indefinite leave to remain in the UK, they can apply for up to 95% loan-to-value, and gifted deposits are accepted.
Additionally, the bank has increased the maximum loan-to-value to 85% for applicants without indefinite leave to remain, provided they meet certain income or residency criteria, and borrowing can be used for debt consolidation. This move aims to help more people, including foreign nationals, achieve homeownership.
Compulsory purchases and leaner committees in Planning Bill
The Planning and Infrastructure Bill aims to speed up housebuilding and infrastructure projects, targeting 1.5 million homes and 150 major developments over the next five years. Key measures include streamlining planning decisions, simplifying compulsory purchases, and strengthening development corporations for large projects.
The bill also introduces strategies to align housing with infrastructure needs. While industry experts welcome the move to reduce red tape, concerns remain about the recruitment of planners and skills shortages. Overall, the bill is seen as vital for meeting the UK’s ambitious housing targets.
Green mortgage searches reach record high in February: Twenty7tec
Green mortgage searches reached a new record in February, increasing by 7.67% from the previous month, according to Twenty7tec. The week ending 28 February saw a 23.76% rise in searches compared to January, and February marked the busiest month ever for green mortgages, with six of the ten busiest days.
While green mortgage interest is typically driven by buy-to-let landlords, February’s surge was mainly driven by homebuyers seeking lower rates tied to better EPC ratings. As new products emerge, the trend of growing demand for green mortgages is expected to continue.
Fixed rate mortgages continue downward trend in ‘positive’ market: Moneyfacts
Average fixed-rate mortgages continued to decrease this week, with sub-4% deals emerging. The average two-year and three-year fixed rates dropped to 5.37% and 5.23%, respectively, while the five-year rate fell to 5.21% and 10-year rates decreased to 5.67%.
Several large banks, including Lloyds, Virgin Money, and Barclays, reduced their rates by up to 0.68%, and various building societies, such as West Brom and Skipton, made cuts as well.
Moneyfacts expert Rachel Springall highlighted the positive sentiment in the market, noting that while rates are falling, borrowers should be mindful of rising fees and the overall cost of mortgages.
