Mortgage Strategy’s Top 10 Stories of the Week:
This week’s headlines feature TSB and HSBC slashing rates, and the Bank of Mum and Dad’s generosity – but with a surprising twist. Dive into these stories and more, right here:
TSB and HSBC to cut rates tomorrow
TSB is reducing rates by up to 25 basis points tomorrow, while HSBC is lowering its rates by an undisclosed amount. This comes amid intense competition among major lenders to offer the lowest sub-4% five-year fixed rates in recent weeks. These competitive rates have generally been available only to borrowers with deposits of at least 40%. However, TSB is now offering its most significant reductions on five-year deals for borrowers with smaller deposits of 10-20%.
Nationwide cuts resi fixes with lowest rate starting at 3.78%
Nationwide cut rates by up to 26 basis points on selected fixed-rate residential products, with the lowest rate starting at 3.78%. This rate was available to both new and existing home movers. From 22 August, the new deals included five-year fixes at 75% LTV with no fee at 4.09% (a reduction of 26bps) and two-year fixes at 60% LTV with a £999 fee at 4.15% (a reduction of 20bps).
The Mortgage Works crops BTL rates to start at 3.49%
The Mortgage Works cut selected buy-to-let rates for new customers by up to 10 basis points, with rates starting at 3.49%. The updated rates included two-year purchase and remortgage fixes at 4.64% with a £1,495 fee, available up to 75% loan-to-value, reduced by 10bps, and five-year purchase and remortgage fixes at 4.29% with a £1,495 fee, available up to 75% LTV, reduced by 5bps. New business limited company buy-to-let rates featured two-year purchase and remortgage fixes, as well as further advance offers, at 4.79% with a 3% fee, available up to 75% LTV, down by 5bps.
New role created for Sard who joins Shawbrook
Former NatWest director Miguel Sard will join Shawbrook Group later this summer as Chief Banking Officer, Retail. In this new role, Sard will oversee consumer lending, savings, and specialist mortgage products across Shawbrook’s consumer franchise and its retail mortgage brands: The Mortgage Lender and Bluestone Mortgages. Shawbrook stated that it will continue to operate its three distinct brands while leveraging shared technology and expertise within the unified business. A company spokesperson noted, “With Miguel leading the combined Retail business, we can deliver the best of a specialist bank with the scale and reach of a major consumer organisation.”
Brokers frustrated as Natwest reduces online-only rates further
NatWest has further reduced its exclusive direct mortgage rate to 3.83% for a five-year fixed deal, compared to 3.89% for broker business. This new rate, available only to direct customers, has raised concerns in the broker community about dual pricing. John Charcol’s mortgage technical manager, Nick Mendes, expressed deep disappointment with NatWest’s decision to lower the direct-only rate to 3.83% with a £1,495 fee.
Former Stonebridge chief Bloomer missing in yacht disaster
Jonathan Bloomer, chair of SDL Group Holdings and other non-executive director roles, was reported missing after a luxury yacht sank off the coast of Sicily in a freak storm. Bloomer, who previously owned mortgage network Stonebridge, has been Morgan Stanley International’s chairman since 2018 and was appointed chairman of Hiscox International Insurance Group in 2023. He began his career at Arthur Andersen, then spent a decade at Prudential, where he served as group CEO until 2005. Bloomer and his wife, Judy, are among those missing.
Nationwide appoints Briffitt head of intermediary sales and new build
Nationwide has appointed James Briffitt as its new Head of Intermediary Sales and New Build. Reporting to Ian Andrew, Nationwide’s Director of Intermediary Relationships, Briffitt brings extensive experience from the intermediary and new-build markets. He has been with Nationwide for 12 years, most recently serving as Regional Manager for London and the South East. Prior to Nationwide, he held senior positions at Legal & General and Northern Rock. Briffitt expressed enthusiasm for his new role, stating he looks forward to collaborating with intermediaries, developers, and new-build brokers nationwide.
NatWest cuts some rates and increases others
NatWest will adjust its rates tomorrow, reducing some while increasing others for first-time buyers and home movers. This follows recent rate cuts from HSBC, as mainstream lenders compete for top positions in the best buy tables. The changes will see some two- and five-year fixed rates for home movers and first-time buyers rise by up to 15 basis points, while selected remortgage rates will drop by up to 16 basis points. The most significant reductions will apply to products for borrowers with 40% deposits.
Barclays trims selected rates by 15bps
Barclays reduced rates by 15 basis points on its reward range for existing customers starting on the day after the announcement. This change followed rate cuts by TSB of up to 25 basis points and a similar move by HSBC. The adjustments by Barclays included a reduction from 5.22% to 5.07% on its two-year fixed rate up to 85% LTV with a £999 fee, and from 5.43% to 5.28% on the no-fee option. The five-year fixed rates dropped from 4.94% to 4.79% with a £999 fee, and from 5.03% to 4.88% without a fee.
Bank of Mum and Dad paying £58,000 deposit – but sons get more
New research by Zoopla revealed that parents are providing an average of £58,129 to help their children onto the housing ladder. The study found that 63% of people who purchased their first home in the past five years received financial assistance from family, with the figure rising to 76% for those under 30. Most of this support came from parents. However, the research also showed that daughters received an average of £13,000 less than sons, with daughters getting £51,671 compared to £65,004 for sons. This parental assistance aligns closely with the average UK first-time buyer deposit of £60,100.
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