Santander’s lowest rate now 3.51%, Barclays and NatWest also cut prices

Santander has cut a wide range of residential and buy-to-let fixed mortgage rates by up to 0.15%, with prices now starting from 3.51%, while Barclays and NatWest have also announced further reductions across purchase, remortgage and BTL products.

The cuts – which include lower rates for first-time buyers, home movers and high-equity borrowers – signal increasingly fierce competition among major lenders, with analysts suggesting a price war is emerging as banks position themselves ahead of expected stronger demand in early 2026.

Twenty7tec launches data analytics platform INSIGHT Pro

Twenty7tec has unveiled INSIGHT Pro, a new data analytics platform designed to give lenders real-time visibility of adviser behaviour and market movements.

Built after industry testing, including a case study with Paragon Bank, the system aggregates activity from Twenty7tec’s Research platform to support predictive modelling, competitor tracking and automated management information.

With integrated AI that can interpret natural-language queries and generate analysis and visuals, INSIGHT Pro aims to help lenders better anticipate market trends, refine product strategies and improve adviser outcomes.

Brokers remain ‘indispensable’ as use of AI continues to rise: Santander

Santander’s latest data shows brokers remain crucial despite rising AI use, with 65% of borrowers saying they couldn’t navigate the homebuying process without one and 85% likely to use a broker again.

Most borrowers saved money—around £125 a month—by using a broker and value their guidance, reassurance and help managing complex market conditions.

Referrals remain the main way homeowners choose a broker, and over half still prefer human advice over AI for every stage of the mortgage process.

Average 2- and 5-year fixes at lowest level since September 2022: Moneyfacts

Moneyfacts says average two- and five-year fixed mortgage rates have fallen again to 4.86% and 4.91% — their lowest levels since September 2022, with five-year fixes dipping below 5% for the first time since May 2023.

Product availability has risen to more than 7,000 options, and high-LTV deals have grown strongly over the past year. While the overall outlook is improving, Moneyfacts warns that many borrowers coming off older low-rate fixes will still face higher repayments, making early advice crucial.

Virgin Money pares back fixed rates

Virgin Money will cut a range of purchase, remortgage and product transfer fixed rates by up to 26bps from 9 December, with five-year fee-free purchase deals dropping to 4.07% and some five-year fixes with a £999 fee falling to 4%.

Exclusive purchase and remortgage products are also being reduced, while several exclusive remortgage, buy-to-let and purchase deals will be withdrawn at 8pm today. The updates follow last month’s cuts of up to 13bps.

Precise enhances affordability and increases new build LTV

Precise has widened its lending options by increasing new-build LTVs to 90% with rates from 5.66%, and extending 95% LTV products to Tier 4 adverse borrowers, subject to credit score.

The lender says the changes will help more customers, including those with past credit blips, benefit from new-build advantages such as energy efficiency and warranties.

It has also introduced one-year fixes, reduced rates for heavier adverse cases, and added flexible fee options to support brokers in securing homeownership for more clients.

Largest increase in mortgage advances since 2020 with 36.9% rise: BoE

Mortgage lending surged in Q3, with gross advances up 36.9% to £80.4bn — the strongest rise since 2020 — and new commitments at their highest since 2022.

High-LTV and high-LTI lending also increased, reflecting ongoing affordability pressures, though arrears remain low. Analysts say the jump reflects improving confidence as rates ease, but warn Q3 may be a high-water mark after pre-Budget uncertainty slowed activity.

Expected base rate cuts and growing lender competition are likely to support a stronger start to 2026.

MIT Live: Brokers that don’t use AI will be replaced by those that do

MAB innovation director Matt Lowndes told MIT Live that brokers who fail to adopt AI will be overtaken by those who do, as customers increasingly expect it and early results show clear benefits. He said AI has boosted document accuracy from 80% to 99% and significantly improved case handling and complaint closures, while stressing that humans must remain central to the process.

Connect Mortgages’ Liz Syms noted AI’s usefulness but warned firms must ensure proper oversight and data safeguards, while Lendwell’s Jamie Lawless highlighted ongoing challenges, including AI’s lack of lender-specific context and its limited integration with adviser workflows.

House price growth to hold steady for 2026: Hamptons

Hamptons forecasts UK house prices to rise modestly by 2.5% in Q4 2026, supported by easing inflation, falling mortgage rates, and improved affordability, while transactions are expected to remain steady at 1.15 million.

Growth is predicted to slow to 2% in 2027 and 1.5% in 2028, with prime markets subdued due to tax and political uncertainty. Regional dynamics are shifting, with the East Midlands projected to have outpaced London in post-2009 growth by next year.

Hamptons’ Aneisha Beveridge notes that while the Budget clarified the mainstream market, the lack of broad stimulus and targeted measures such as a council tax surcharge on £2m+ homes will keep buyer caution high.

Government’s earnings from stamp duty surge 23% to £18bn

In 2024/25, UK stamp duty receipts rose 23% to £18.2bn, with residential SDLT up 21% to £10.4bn, partly due to a pre-April rush before changes to first-time buyer relief and higher surcharges on second homes. The number of residential transactions subject to SDLT exceeded one million, up 20%.

Quilter’s Ian Futcher notes the market remains resilient, but higher taxes and surcharges are increasing costs for buyers and landlords, and some first-time buyers who rushed purchases may now face higher mortgage costs that outweigh their initial savings.