This week’s top stories: TMW cuts new landlord rates to start from 3.24% and Revolut prepares for Irish mortgages and UK bank launch.
Explore these developments and more below:
TMW cuts new landlord rates to start from 3.24%
The Mortgage Works is reducing rates by up to 30 basis points on selected buy-to-let products for new customers from 15 March, with rates starting at 3.24%.
Key changes include two-year fixed deals for purchases and remortgages at 3.24% (down 15bps) and remortgages at 3.54% (down 20bps) or 4.84% with no fee (down 30bps), all available up to 65% LTV.
Senior manager Joe Avarne says the reductions aim to improve market access for buy-to-let investors.
Lloyds Banking Group issues stamp duty completion guarantee
Lloyds Banking Group, including Halifax and Bank of Scotland, is guaranteeing completion for mortgage cases submitted by 25 March ahead of the stamp duty rule changes on 1 April. The lender anticipates a 50% surge in March completions and is working with brokers and conveyancers to meet demand.
From April, the nil-rate stamp duty threshold will drop from £250,000 to £125,000, introducing a 2% tax on properties valued between £125,001 and £250,000. First-time buyer thresholds will also be reduced, particularly impacting those in high-cost areas like London and the South East.
Barclays latest lender to offer stamp duty completion guarantee
Barclays is the latest major lender to guarantee mortgage completions for cases submitted by 25 March, ahead of the stamp duty rule changes on 1 April. The bank urges conveyancers to submit certificates of title by this date to ensure completion.
Since the October Budget, average monthly completions have risen by 26%, driven by a 59% surge in first-time buyer purchases. Barclays says it has worked with brokers and solicitors to prepare for the rush. From April, the nil-rate stamp duty threshold will drop to £125,000 for home movers and £325,000 for first-time buyers.
4.5 times LTI rule must be eased: UK Finance
UK Finance has urged the easing of loan-to-income lending limits as part of its Plan for Growth, proposing regulatory reforms to boost the economy. The banking body calls for changes such as relaxing mortgage lending constraints, removing outdated guidance, and adjusting capital requirements under the government’s Freedom to Buy scheme.
Other recommendations include scrapping the banking levy, lifting the 0.5% stamp duty on retail investments, and maintaining the £20,000 ISA allowance. The government has already adopted some measures, and Nationwide has also called for a review of the 4.5 times LTI limit to support more first-time buyers.
Revolut prepares for Irish mortgages and UK bank launch
Revolut is expanding its UK banking team ahead of a planned summer launch and preparing to offer mortgages in Ireland. The digital bank, which received a UK banking licence with restrictions last July, has grown its banking staff from 35 to over 100, with plans to double by year-end.
CEO Francesca Carlesi aims to make Revolut a primary bank for UK customers, addressing concerns that many use digital banks mainly for perks rather than salary deposits. Revolut, with 50 million users across 38 countries, also plans mortgage services in Lithuania, Ireland, and France, starting in July.
L&C Mortgages appoints Wager as MD
L&C Mortgages has appointed Sidney Wager as managing director, bringing nearly 30 years of experience from Barclays, where he held senior leadership roles, including head of intermediary market development.
As part of L&C’s executive committee, he will oversee strategy across advice, operations, marketing, partnerships, and technology. His appointment follows recent additions to the executive team, including a new CTO, CFO, and CMO.
CEO Mark Harrington praised Wager’s industry expertise, while Wager expressed enthusiasm for joining L&C, citing its strong customer focus and reputation in the mortgage sector.
Inflation-adjusted house price growth only 12% over decade: Yopa
UK house prices have risen by 12.1% in real terms over the past decade after adjusting for inflation, despite a nominal increase of nearly 52%, according to Yopa. Average house prices climbed from £176,561 in 2014 to £268,087 in 2024, while new-build homes saw a steeper rise of 79% (33% after inflation).
Yopa CEO Verona Frankish notes that, while price growth may seem alarming, inflation-adjusted increases are more moderate. However, affordability remains a challenge, with new-build homes seeing significantly higher price surges compared to the wider market.
MAB posts 41% profit jump on higher proc and client fees
Mortgage Advice Bureau reported a 41% rise in full-year pre-tax profits to £22.9m, driven by higher procuration and client fees.
Procuration fees increased by 7.9% to £105.8m, while protection and general insurance commissions rose 12.4% to £104.7m. Client fees also saw an 18.1% boost to £51.2m. Adviser numbers grew slightly to 1,985, with revenue per adviser up 12.3% to £138,700.
The firm noted a surge in mortgage applications in late 2024 and expects continued growth in 2025. It is also considering a move to the main market to expand its investor base.
HSBC to cut transfer window from April
HSBC is set to reduce its product switch window in three stages, cutting it from 180 days to 150 in April, 120 in May, and 90 in June. This follows a broader industry trend of shortening the six-month window introduced under the Mortgage Charter.
Brokers note that with rates steadily decreasing, the need for early rate-locking has diminished, reducing administrative burdens for both lenders and advisers. Industry experts agree that a shorter window will streamline processes, improve efficiency, and better reflect current market conditions.
Virgin Money revamps retrofit range
Virgin has revamped its Retrofit Boost mortgage range, now offering up to £10k cashback for customers making energy-efficient home improvements. The lender has discontinued the seven and ten-year options but increased cashback on its five-year fixed-rate mortgages.
Available for residential and buy-to-let customers with loan sizes between £150k and £500k, the range offers cashback amounts of £5k, £7k, or £10k, paid to the conveyancer at completion.
These mortgages help fund energy-efficient upgrades like insulation, solar panels, and heat pumps, with higher rates for the first five years before switching to core products.
