NatWest and Santander join FCA’s AI testing scheme

NatWest, Santander and several other firms have joined the FCA’s new AI Live Testing scheme, which provides tailored regulatory and technical support to help develop and deploy AI safely in UK financial services, particularly in areas such as financial advice, debt resolution, customer engagement and complaints handling.

The initiative aims to strengthen governance and risk management while helping the regulator understand AI’s future impact on the market, with a second cohort opening in January 2026, despite the Financial Ombudsman Service recently writing off £900,000 on an abandoned AI project.

Meet the MS NextGen cohort for 2026

We received many fantastic entries from some very talented and impressive candidates working in roles which reach right across the industry.

After a rigorous shortlisting and candidate selection process supported by Mortgage Advice Bureau and our Sponsors, we are pleased to announce the Class of 2026 final cohort.

HSBC UK expands cashback for FTBs and cuts rates

HSBC UK has expanded and increased its first-time buyer cashback offers, with incentives now ranging from £500 to £2,000 and higher amounts for energy-efficient homes, while also introducing cashback across more low-LTV products and premier rates for the first time.

At the same time, the bank has cut rates by up to 0.12 percentage points on more than 100 remortgage and switcher products, as part of its wider push to make home buying more affordable and support sustainable, responsible lending.

Vickers Young joins Stonebridge

Vickers Young, the Leicestershire-based mortgage and protection firm founded in 2012, has joined the Stonebridge network after leaving Mortgage Advice Bureau, citing a need for a partner better aligned with its long-term growth plans.

Now a team of 12, the firm aims to recruit up to 12 advisers each year, with both sides highlighting shared ambition, continued independence and Stonebridge’s support for scaling the business.

Average age of first-time buyer climbs 2 years since pandemic

The average age of a first-time buyer in England has risen from 32 to 34 since before the pandemic, and to 35 in London, as higher house prices, large deposits and stretched rental costs make it harder to buy.

Although home ownership remains stable at 65%, renters are spending a far higher share of income on housing, saving deposits of around £36,500, and increasingly buying later, with longer mortgage terms and smaller deposits, raising concerns about affordability and the risk of negative equity.

L&C Mortgages appoints Payne as COO

L&C Mortgages has appointed Dan Payne as chief operating officer, reporting to managing director Sidney Wager, bringing over 20 years’ experience in financial services, including senior roles at Together Money and Fluent Money Group.

Payne will focus on process optimisation and enhancing customer experience, while supporting the firm’s distribution strategy and ongoing growth, as L&C aims to strengthen its position as the UK’s leading mortgage partner.

FOS wrote off £900,000 for abandoned AI tool

The Financial Ombudsman Service has written off £900,000 on an abandoned document identification AI tool, as part of a wider £3.5m spend on its data strategy in 2024/25, after deciding to move away from a large in-house technical programme in favour of an off-the-shelf solution.

The FOS said the writedown reflects changes made as part of a major modernisation effort, with continued investment in AI and technology to improve efficiency and support its long-term reform programme.

UK’s major lenders pass BoE stress tests

Britain’s major lenders have all passed the Bank of England’s latest stress tests, showing they have enough capital to withstand a severe but plausible downturn involving a 28% fall in house prices, unemployment peaking at 8.5% and interest rates rising to 8%.

The UK banking system’s average CET1 capital ratio falls from 14.5% to a low of 11.0% in the scenario, but still sits around £60bn above minimum requirements, meaning no bank is required to strengthen its capital position.

Lenders including NatWest, Nationwide, Barclays and Lloyds said the results confirm their strong and resilient balance sheets, while separate BoE data showed net mortgage borrowing fell to £4.3bn in October, down from £5.2bn in September.

Pivotal Growth acquires Xact Mortgages

Pivotal Growth has acquired Solihull-based Xact Mortgages, a fast-growing new build and protection broker founded in 2007, to strengthen its position in the sector.

Xact, which has a team of seven advisers and strong developer relationships across the Midlands and beyond, will join Pivotal’s New Build division led by Daniel Mumford, with both firms highlighting shared ambitions for growth and innovation; the deal follows Pivotal’s earlier acquisition of Believe Money Group this year.

Nationwide launches lowest fixed rate since September 2022 at 3.58%

Nationwide has cut a wide range of fixed mortgage rates, with its lowest now at 3.58% — the first time below 3.60% since September 2022 — across products for first-time buyers, home movers and remortgagers up to 95% LTV.

First-time buyers can also receive £500 cashback, or up to £500 through its Green Reward for energy-efficient homes, as Nationwide says it continues to focus on offering more competitive sub-4% rates.