This week’s top headlines: NatWest, Barclays and Virgin make rate changes and FCA boss talks mortgage risk trade-offs in candid chat.

Explore these and other major industry updates below:NatWest, Barclays and Virgin make rate changes

NatWest, Barclays, Virgin Money and Santander UK have announced a series of mortgage rate changes, with NatWest cutting rates across purchase, remortgage, buy-to-let and green products, while Santander reduced rates on higher LTV first-time buyer deals.

Barclays trimmed several residential purchase rates but increased selected tracker and remortgage products, and Virgin introduced a mix of reductions and rises across residential, buy-to-let and product transfer ranges, reflecting ongoing repricing activity across the market.

FCA boss talks mortgage risk trade-offs in candid chat

Financial Conduct Authority chief executive Nikhil Rathi has warned that looser mortgage lending rules could lead to some additional borrower distress if interest rates rise sharply, acknowledging policy trade-offs after reforms increased loan-to-income limits and boosted first-time buyer numbers.

Speaking on the Fairer Finance podcast, he also suggested the regulator faced Treasury pressure over its enforcement transparency and indicated a growing role for equity release in retirement planning, while managing director James Daley criticised the FCA for stepping back from new regulation in areas such as credit cards.

Imbalance of payments: Brokers plead for fairer fees (again)

Broker procuration fees are back in focus after lenders including Lloyds Banking Group cut product transfer payments, squeezing intermediaries who face rising regulatory demands but receive lower fees for similar work.

Industry figures such as Stephanie Charman warn that unless remuneration better reflects workload and risk, the sustainability of fee-free mortgage advice and the future strength of the intermediary sector could be undermined.

News Analysis: ‘Death knell’ for leasehold?

The government’s draft Commonhold and Leasehold Reform Bill, which would cap ground rents at £250, phase them down to a peppercorn and abolish forfeiture, has been hailed by campaigners as a potential turning point for leaseholders trapped by escalating charges and mortgage restrictions.

Supporters such as Liam Spender and Cath Williams say the reforms could improve affordability, remortgaging prospects and security, while lenders welcome greater certainty.

However, groups including the Residential Freehold Association warn of legal challenges and heavy compensation costs, meaning implementation could take years.

Halifax raises rates as Gen H and others make 20bp cuts

Halifax has increased selected remortgage and product transfer rates by up to 10bps, while Gen H and Principality Building Society have announced cuts of up to 20bps on selected five-year and residential deals.

Gen H said the reductions followed falling swap rates, according to sales director Sara Palmer, while Principality also trimmed holiday let products but raised some buy-to-let rates.

Foundation Home Loans is meanwhile withdrawing its residential range ahead of repricing.

Santander lowers FTB fixes by up to 0.32%

Santander UK has cut rates by up to 0.32% across its 85% to 95% LTV first-time buyer range, with deals starting from 3.92%, as part of a push to support new buyers, according to homes director David Morris.

However, the bank has increased selected home mover, remortgage and buy-to-let rates at lower LTVs. Commenting on the changes, Trinity Financial’s Aaron Strutt said Santander is making a mixed set of adjustments, despite strong competition from lenders including Nationwide Building Society, First Direct and HSBC UK.

Nationwide and TSB cut fixed rates for new and existing customers

Nationwide Building Society will cut fixed mortgage rates by up to 16bps from 13 February across products for first-time buyers, home movers and remortgagers, taking its lowest rate to 3.54% for a two-year fix at 60% LTV.

Head of products Carlo Pileggi said the move aims to keep pricing competitive, while Trinity Financial director Aaron Strutt noted strong competition for first-time buyers.

Meanwhile, TSB Bank is reducing selected residential rates by up to 10bps.

Weaker jobs market could prompt March base rate cut

A rise in unemployment to 5.2% and a slowdown in wage growth to 4.2% have strengthened expectations that the Bank of England could cut base rate in March, with some analysts now predicting rates may fall to 3% by year-end.

AJ Bell’s Danni Hewson said the weaker labour market and easing pay pressures support the case for a cut, while Evelyn Partners analyst Alice Haine added that softer inflation and sluggish growth increase the likelihood of further rate reductions.

Brokers should beware consumer AI and hike data security: Mortgage Brain

Mortgage Brain has warned brokers to tighten data security and avoid entering client information into consumer AI tools, citing growing risks from phishing, ransomware and human error.

The firm highlighted common failings such as reusing passwords, emailing sensitive documents and not using multi-factor authentication, urging brokers to treat data security as non-negotiable, particularly as it announced its achievement of ISO 27001 accreditation for information security management.

House prices stand still in February after record January surge: Rightmove

Rightmove shows February asking prices for new homes were flat at £368,019, though January’s 2.8% rise gave the strongest start to a year since 2020. High stock levels and steady buyer activity kept prices stable.

Average earnings are up 4.7% year-on-year, and two-year fixed mortgage rates are down to 4.28%, aiding affordability for first-time buyers. Experts say confidence and lower borrowing costs are supporting demand, but major price rises are unlikely soon.