This week’s top stories: The Mortgage Lender launches 80% LTV BTL product and cuts rates, and government launches white paper to scrap ‘feudal’ leaseholds.
Explore these developments and more below:
The Mortgage Lender launches 80% LTV BTL product and cuts rates
The Mortgage Lender (TML) has introduced an 80% loan-to-value (LTV) product for buy-to-let (BTL) customers and increased the maximum loan amount for first-time landlords from £350,000 to £500,000. The lender has also reduced rates across its BTL and residential product ranges, including lowering selected BTL rates by 0.05%.
Notable changes include reduced rates on five-year 75% LTV fee ranges and the relaunch of its two-year fixed-rate BTL products. TML’s residential range has also seen cuts, with its RL1 two- and five-year fixed products reduced by up to 0.10%. Head of Sales Chris Kirby emphasized TML’s commitment to supporting the rental market amid evolving property regulations.
Govt launches white paper to scrap ‘feudal’ leaseholds
The government has proposed reforms to abolish ground rent for homeowners and shift towards commonhold leases, making them the default ownership model for new homes. These changes aim to give homeowners greater control over building management and avoid the issues caused by the current leasehold system.
The reforms also seek to ban new leasehold flats and improve the management of commonhold properties, while providing more flexibility and protections for residents. However, critics argue that the changes could create a two-tier housing system, leaving those in existing leasehold properties with unresolved financial challenges.
Trade war would lead to ‘substantial’ UK harm: BoE Bailey
The Bank of England’s governor, Andrew Bailey, warned that a global trade war, particularly tariffs imposed by the US on UK imports, could significantly harm the UK economy, increase prices, and reduce consumers’ purchasing power.
Bailey stressed that trade supports growth and that addressing trade imbalances should be done through multilateral forums rather than unilateral actions.
The UK is at risk of a £24bn economic blow if US tariffs on VAT-charging countries, like the UK, are implemented. Bailey also highlighted the economic uncertainty, with inflation projected to rise and economic growth stagnating.
Halifax confirms changes across product range
Halifax has introduced several changes to its mortgage range from 5 March, including a reduction of up to 0.14% on selected fixed-rate home-mover and first-time-buyer products.
Additionally, the maximum loan limit for the lender’s First Homes scheme product has been increased to £1m.
The updates will be reflected on the Halifax Intermediaries Website and other sourcing systems by 5 March.
CHL Mortgages for Intermediaries appoints Walker as Turrell announces retirement
Ross Turrell, the commercial director at CHL Mortgages for Intermediaries, has announced his retirement after over 40 years in the financial services industry. Turrell, who rejoined CHL in 2020 after a previous tenure starting in 1998, will be succeeded by Darrell Walker.
Walker, the current director of sales and distribution at ModaMortgages, will take on the role of group sales director for both CHL Mortgages for Intermediaries and ModaMortgages. Walker brings extensive experience from positions at Shawbrook Bank, OneSavings Bank, and other firms. Turrell expressed confidence in Walker’s leadership and looks forward to enjoying more time with his family.
Young people most at risk from rent scams: Fraud Bureau
Young people aged 18 to 39 represent almost three-quarters of rental fraud cases in England, Wales, and Northern Ireland, according to National Fraud Intelligence Bureau (NFIB) data.
In 2024, nearly £9 million was lost in around 5,000 reported cases, with the 18-29 age group accounting for 48% and the 30-39 group for 25%.
The Home Office is urging renters to be cautious when making decisions and avoid paying for properties without seeing them in person. It has also called on technology companies to tackle fraud on social media platforms more effectively.
The government is promoting its Stop! Think Fraud campaign and launching a nationwide push for 2-step verification to protect against online fraud.
Halifax cut resi fixes by up to 31bps, Landbay launches BTL loans
Halifax is reducing residential fixed-rate offers by up to 31 basis points, with product transfers and further advance loans seeing reductions of up to 31bps and selected remortgage fixes cut by up to 25bps.
Meanwhile, Landbay has launched four new buy-to-let products for small houses in multiple occupation and multi-unit freehold blocks, offering five-year fixed rates starting at 5.09%, available for loans between £150,000 and £500,000. These products, aimed at meeting growing demand for multi-unit properties, include both purchase and remortgage options.
Barclays offers 3.96% on green five-year fix deal
Barclays has reduced mortgage rates from 4 March, including a drop to 3.96% on its Green Home five-year fixed, £899 product fee, 60% LTV mortgage. The Green Home mortgages are available for energy-efficient new-build homes with a rating of 81 or above.
Barclays has also cut rates by up to 0.48%, with a two-year fixed, £0 product fee, 90% LTV now available at 4.93%. Additionally, the lender has raised the maximum loan amounts for 90% LTV purchases, increasing caps for houses from £570k to £640k and for flats from £275k to £310k.
Virgin and Natwest reveal further rate changes.
Virgin and Natwest have both announced mortgage rate changes effective from 6 March.
Virgin is reducing rates across several products, including a 0.09% reduction on 80% LTV two- and five-year fixed rates, starting at 4.37%. Its Retrofit Boost and Green mortgages will also see reductions of up to 0.14%, starting from 4.30%. Additionally, Virgin has made changes to exclusive BTL rates, with reductions up to 0.10%.
Natwest, on the other hand, is reducing rates on 60% LTV residential purchase mortgages by 5bps, while increasing 90% LTV purchase rates by 8bps. The lender is also raising rates on some remortgage and first-time buyer products, including a 5bps increase on five-year fixed 90% LTV remortgages.
UK rents rise just 3% as Zoopla warns rental reforms will continue to limit supply
According to Zoopla’s quarterly rental market report, average UK rents for new lets have risen by 3% over the past year, with the average rent now at £1,284pcm. This is a significant slowdown from last year’s 7.4% growth and reflects worsening rental affordability rather than increased housing supply.
While there has been a slight rise in rental supply, demand has dropped by 17%, mainly due to reduced immigration and increased first-time buyer demand. However, the market still faces a supply shortage, which, coupled with rental reforms and energy rating requirements for properties, may lead to further constraints in the future, keeping upward pressure on rents. Zoopla forecasts a 3-4% rent increase in 2025.
