This week’s top headlines: Mortgage rates edge down as lenders loosen requirements, and LendInvest names new head of distribution.

Explore these and other major industry updates below:

Mortgage rates edge down as lenders loosen requirements: Moneyfacts

Mortgage rates have dipped slightly this week as lenders adjust pricing and policies in anticipation of a potential base rate cut in August.

The average two-year fixed rate fell to 5.01%, now matching the five-year average, with major banks like Lloyds and Halifax making notable reductions. Some building societies also introduced rate cuts or new products, such as Leeds Building Society’s ‘Income Lifter’ range.

Additionally, several lenders have eased affordability rules, increasing loan-to-income limits to support more borrowers. Despite recent volatility, market expectations of a base rate cut continue to encourage more competitive offerings.

Mortgage prisoners group left with ‘no hope’ following govt meeting

The UK Mortgage Prisoners Campaign Group says it has been left feeling hopeless after a recent meeting with Treasury Minister Emma Reynolds, citing a lack of plans or commitment from Labour to address the plight of mortgage prisoners.

Despite Labour’s prior support in opposition, campaigners claim the new government has simply repeated ineffective policies and ignored proposals backed by research, including reports funded by Martin Lewis.

The group warns that thousands face repossession, particularly those with interest-only mortgages nearing term-end, and accuses both Conservative and Labour ministers of inaction. Calls for urgent intervention and a public inquiry continue to mount.

Mother and daughter team up in mortgage venture

Mother and daughter Naomi and Heather Greatorex have joined forces to launch Heath Mortgage Solutions, a new whole-of-market mortgage brokerage in London, supported by Naomi’s established protection firm, Heath Protection Solutions.

The protection business has taken a 20% stake in the new venture, with Naomi offering guidance as Heather leads the company. With a background at LDN Finance, Heather aims to bring a fresh, female-led perspective to the mortgage sector.

The duo hopes to inspire more young women to lead in financial services, while also bridging the advice gap through collaboration between their two businesses.

BoE preview – analysts expects rate cut but not unanimous MPC

The Bank of England is widely expected to cut the Bank Rate by 25 basis points to 4% at its August meeting, although analysts predict the decision won’t be unanimous, with at least two hawkish MPC members likely voting to hold.

Despite signs of weakening in the labour market and a cooling of pay growth, recent inflation data—particularly in services and food—has come in above expectations, prompting continued caution.

While a gradual path of rate cuts is anticipated, the Bank is expected to maintain its measured approach, emphasising that future reductions will be “gradual and careful.”

LendInvest names new head of distribution

LendInvest Mortgages has promoted Rod McPherson to head of distribution and appointed Paige Archer as business development manager for a newly created East London patch.

McPherson, a seasoned property professional with 20 years’ experience, joined LendInvest in 2023 and will now focus on strengthening relationships with mortgage clubs and networks.

Archer, who began her career at LendInvest seven years ago as a receptionist, will now oversee a territory including Romford, Southend-on-Sea, Bromley, Dartford, and South West London. The company praised both for their strong broker relationships and deep understanding of specialist lending needs.

The Right Mortgage & Protection Network launches member initiatives

The Right Mortgage & Protection Network (TRM) has introduced two new initiatives for member firms: the Platinum Club, which rewards top-performing firms with a celebratory event in September, and the Business Risk Forum, led by Aidan McCarthy, designed to help principals manage operational and strategic risks beyond regulatory compliance.

These initiatives aim to enhance support and peer engagement within the network, complementing existing activities and upcoming events such as a senior business leaders dinner in August.

TRM’s managing director, Ben Allen, emphasises the group’s commitment to helping firms grow sustainably and feel recognised for their achievements.

L&G sees lifetime advances slump by a quarter to £104m in H1

Legal & General reported a 26% drop in lifetime and retirement interest-only mortgage advances to £104 million in the first half of the year, citing subdued market conditions due to higher interest rates.

Its UK lifetime mortgage book stood at £6.1 billion, representing 7% of the group’s £84.6 billion asset portfolio. Institutional retirement operating profit rose 11% to £618 million, boosted by strong back book earnings, including £150 million from annuities. The group’s overall core operating profit increased 6% to £859 million, supported by recent pension risk transfer acquisitions.

Legal & General also completed the sale of UK housebuilder Cala Homes for £1.4 billion last September, refocusing on core business areas. CEO António Simões highlighted growth and synergies across the company’s divisions.

Aviva promotes Layden to equity release MD

Aviva has promoted Sarah Layden to managing director of its equity release unit, following her interim leadership of the Direct Wealth business during parental leave.

Layden, who has held various senior commercial roles over 20 years with Aviva, succeeds Matt McGill, now managing director of Aviva Health. Reporting to Aviva Retirement Solutions MD Dave Elliot, Layden highlighted the unit’s vital role in helping customers plan for retirement.

Aviva’s equity release sales surged 41% in the first quarter compared to last year, contributing to a 4% rise in retirement division sales to £1.8 billion.

Right to Buy discounts cost taxpayers £200bn: Report

A new report by thinktank Common Wealth reveals that Right to Buy purchases have cost UK taxpayers nearly £200 billion in discounted sales over the past 50 years, worsening the housing crisis by collapsing social housebuilding and weakening council finances.

Since 1980, 1.9 million council homes have been sold to tenants at an average 44% discount, resulting in a transfer of public wealth now valued at £194 billion. The policy, a hallmark of Margaret Thatcher’s era, shifted focus from subsidising supply to demand, limiting councils’ ability to meet local housing needs.

Deputy Prime Minister Angela Rayner has pledged to build 300,000 affordable homes and impose stricter rules on Right to Buy, including extending the qualifying tenancy period from three to ten years.

Land Registry accepts electronic signatures

The Land Registry is encouraging conveyancers to start submitting documents signed with qualified electronic signatures (QES), which eliminate the need for a third-party witness or printing. QES, considered the most secure form of electronic signature, use well-regulated, established technology.

Deputy director Andy Roddy said this move advances the Land Registry’s digital transformation and aims to meet the needs of tech-savvy customers. The Land Registry invites interested parties to contact them for support and will provide further information on QES applications soon.