FCA plans to raise broker fees by 2%

The FCA has proposed a 2% fee increase for mortgage lenders and brokers, raising their contribution to £23.5m for 2025/26, alongside a rise in the minimum Financial Ombudsman Service levy from £85 to £95.

This follows a 9% hike last year and reflects a 4% rise in the regulator’s annual funding requirement. Additional costs of around £2m are also expected for money guidance and debt advice levies. Final fees and industry feedback will be published in July, as the FCA embarks on its new five-year strategy to support innovation.

Former BoE head calls for half-point cut to 4% at next MPC meeting

Former Bank of England deputy governor Charlie Bean has called for a bold half-point interest rate cut to address the economic uncertainty sparked by Donald Trump’s global trade tariffs, which have hit markets and confidence hard.

With the base rate currently at 4.5%, the chance of a quarter-point cut at the next meeting in May has surged to 95%, and traders expect further cuts later this year. Bean and fellow former policymaker David Blanchflower argue urgent action is needed, with Blanchflower even urging an emergency meeting.

However, Deutsche Bank believes significant cuts will require clear signs of economic deterioration, despite forecasting four cuts this year.

Regulator to ‘consider impediments’ to 4.5 times LTI rules

The Financial Policy Committee is reviewing whether there are obstacles preventing lenders from increasing their 4.5 times loan-to-income (LTI) lending, a cap introduced in 2014 limiting such loans to 15% of new residential mortgages annually.

While many major lenders operate well below this threshold, industry groups have urged for more flexibility to support first-time buyers. The FPC expressed support for lenders using their full LTI allowances within their own risk parameters and noted that some lenders have already adjusted affordability tests. However, concerns remain that easing these rules could fuel rising house prices and mortgage arrears, despite repossessions currently being historically low.

Nationwide cuts income required on Helping Hand

Nationwide has lowered the minimum income requirement for single applicants using its Helping Hand mortgage products back to £35,000, after raising it to £40,000 in January to comply with regulations limiting high loan-to-income (LTI) lending.

The threshold for joint applicants remains at £55,000. Despite allowing borrowing up to six times income through Helping Hand, Nationwide is constrained by rules that cap lending above 4.5x income to 15% of total lending.

Alongside UK Finance, the building society is urging regulators to relax these limits to better support first-time buyers, especially as Helping Hand continues to see strong demand.

Rate cut bets slip as BoE Breeden warns tariff chaos will hurt UK growth

The likelihood of a Bank of England rate cut next month has slipped to 78%, down from over 90% earlier in the week, after President Trump paused sweeping global tariffs, easing fears of a trade war.

While markets rallied on the news, concerns remain over the damage already done, with BoE deputy governor Sarah Breeden warning that ongoing trade uncertainty could dampen UK growth.

However, the inflation outlook remains unclear, complicating decision-making for rate-setters. Economists, including Deutsche Bank’s Sanjay Raja, suggest the MPC will likely proceed cautiously, favouring a quarter-point cut to support the fragile economy.

Clydesdale Bank, Gen H and TSB make rate changes

Clydesdale Bank, Gen H, and TSB have all adjusted mortgage rates, with a mix of cuts and increases.

Clydesdale made reductions of up to 0.64% across several core and exclusive products, especially at higher loan-to-value (LTV) ranges, but also raised rates on some lower LTV and large loan options by up to 0.19%.

Gen H cut rates by up to 20 basis points across most of its range up to 90% LTV, including its New Build Boost product, now priced at 6.29%.

TSB also made modest cuts, reducing rates by up to 0.25% on selected residential, remortgage, and product transfer deals.

Barclays deals cut to 3.99% as Precise and Co-op drop rates

Barclays, Co-op, and Precise have joined the latest wave of mortgage repricing, announcing rate cuts across various products.

Barclays is reducing rates by up to 38 basis points, with several deals now dipping below 4%, including two- and five-year fixes at 60% LTV priced at 3.99%. Its mortgage guarantee two-year fix at 95% LTV is seeing the largest cut, dropping from 5.28% to 4.9%.

Co-op has lowered selected remortgage, retention, purchase, and professional mortgage rates by up to 17 basis points.

Meanwhile, Precise is set to launch new, lower buy-to-let product transfer rates after withdrawing its current range.

Sliding global economic environment puts UK stability at risk: BoE

The Bank of England’s Financial Policy Committee has warned that US tariffs have worsened the global economic outlook, increasing risks to UK financial stability. The imposition of a 10% baseline tariff by the US on imports — with even steeper levies on the EU and China — has disrupted trade predictability and triggered global stock market declines.

The FPC highlighted rising threats from global market fragmentation and noted continued vulnerabilities in market-based finance. However, it maintains that UK banks remain robust and able to support the economy, even amid sharp downturns. Meanwhile, household debt levels are at their lowest since 2001, though high loan-to-income mortgage lending has edged up.

Trump tariffs will ‘depress’ UK growth: MPC Lombardelli

Bank of England deputy governor Clare Lombardelli warned that Donald Trump’s tariffs will likely depress UK growth, though the impact on inflation remains uncertain.

With the UK facing a 10% tariff from the US and global trade tensions rising, Lombardelli noted that inflation effects depend on how other countries respond. UK inflation is currently 2.8%, above the Bank’s 2% target, and the Monetary Policy Committee will factor in growth and market uncertainty when deciding on interest rates in May.

Markets expect an 84% chance of a quarter-point rate cut, with concerns about inflation rising from the US-China tariff dispute.

Barclays offers zero deposit mortgage for Right to Buy borrowers

Barclays has announced it will no longer require a deposit from borrowers purchasing a home under the Right to Buy scheme, instead using the Right to Buy discount as a substitute.

The bank will offer reduced rates for lower loan-to-value (LTV) mortgages, with lending capped at 90% of the full market value to ensure responsible borrowing. High-value properties will still require a deposit.

Barclays’ Lee Chiswell stated that this move removes the deposit barrier for many, helping council and housing association tenants achieve homeownership.