Two-thirds of homebuyers confused by broker fees

Considerable doubt’ over further rate cuts: BoE Bailey

The Bank of England governor, Andrew Bailey, has warned that uncertainty remains over the timing of future interest rate cuts, despite the MPC’s recent quarter-point reduction to 4%, its lowest since March 2023. He told MPs that while rates are likely to fall further, the pace is unclear, echoing market expectations of no further cuts this year.

The MPC narrowly voted 5–4 in favour of the cut, with members divided: Alan Taylor, who initially sought a larger reduction, argued the economy is nearing a “soft landing” but remains fragile, while Megan Greene opposed any cut, citing persistent inflation risks. With inflation edging higher, policymakers are cautious about moving too quickly.

Councils pay over £30m in incentives to landlords to house homeless

Research by Generation Rent shows councils spent over £31m in 2024/25 on one-off incentive payments to private landlords to house homeless households, with London authorities accounting for £24m of the total. Payments have risen sharply since 2018, with more councils now paying £10,000 or more per case.

Critics argue this system wastes public money and reflects a broken rental market, as councils struggle with soaring rents and frozen housing allowances. Landlord groups, however, stress that the private rental sector remains vital for vulnerable tenants amid a shortage of social housing.

November Budget may push base rate cut into Christmas: Deutsche Bank

Deutsche Bank has warned that the Bank of England may delay any further interest rate cut until December, as November’s Budget could prompt policymakers to wait for clarity on fiscal plans and wage trends.

The bank still expects one more cut this year, but says the timing is increasingly uncertain, with inflation rising to 3.6% and forecast to hit 4%. The MPC, which lowered rates to 4% last month, meets again in September, November and December.

Meanwhile, Chancellor Rachel Reeves is expected to use the Budget to raise up to £20bn, with possible property tax reforms under consideration.

Bond yields hit 27-year highs, but only long-term mortgage costs rise: Brokers

UK borrowing costs have risen to their highest in nearly three decades, with 30-year gilt yields hitting 5.698% ahead of November’s Budget, where Chancellor Rachel Reeves is expected to outline tax rises of up to £20bn.

While investors fear such measures could stifle growth, mortgage brokers note the surge mainly affects long-term deals, making ten-year fixes costly, whereas two- and five-year rates remain relatively competitive.

With most borrowers favouring shorter-term products, experts say the choice now rests between lower immediate costs and paying a premium for long-term certainty.

Market faces two months of uncertainty until Budget is set: Coventry BS

Coventry Building Society has urged Chancellor Rachel Reeves to confirm the Autumn Budget date, warning that ongoing speculation about tax reforms is unsettling the housing market.

Rumoured changes include stamp duty reforms, ending capital gains exemptions on high-value homes, and extending National Insurance to rental income.

Coventry BS said uncertainty is already disrupting buyer and seller behaviour, with some delaying purchases and others rushing sales, risking chain collapses. The society stressed that clarity is urgently needed to restore confidence and stability in the market.

Changes to car finance rules adds thousands to home loans: Coventry BS

Coventry Building Society says buyers with car finance can now borrow significantly more on mortgages than six months ago, thanks to looser affordability rules following updated FCA guidance.

In March, a £345 monthly car payment cut a single borrower’s mortgage capacity by over £18,000, but now it reduces borrowing by just £5,000, freeing up nearly £13,000 more for housing. For joint buyers, the impact has also eased markedly.

Coventry BS says the shift offers greater flexibility for balancing car ownership with homebuying, though loan repayments still affect affordability.

HMO properties double annual income of standard lets: Aldermore

New research shows landlords with houses in multiple occupation (HMOs) earned almost double the income of standard lets last year, averaging £120,283 per property compared with £61,846 for non-HMOs.

Aldermore said the figures underline HMOs’ strong yields, with a higher proportion of landlords in this sector achieving six-figure returns.

While HMOs feature prominently in top-earning portfolios, they come with stricter regulations and higher compliance costs, including planning rules and safety checks.

Primis appoints Clayton as regional sales director in Southwest

Primis has promoted Jade Clayton to regional sales director for the Southwest, succeeding Claire Madge, who has moved to Embrace.

Clayton, previously recruitment development manager and area supervision manager, brings experience as a former mortgage broker. She will report to new sales director Neil Hoare, who joins from HL Partnership to lead sales at both Primis and TMA.

Chief distribution officer Emma Hollingworth said the strengthened team reflects the network’s commitment to members, praising Clayton’s skills and fit for the role. Clayton said she looks forward to expanding her work with brokers and new recruits.

HSBC announces 5.5% LTI for FTBs

HSBC UK has boosted its mortgage policy by offering first-time buyers loans of up to 5.5 times their income, provided they meet minimum earnings thresholds of £35,000 for single applicants and £55,000 for joint borrowers.

Head of mortgages Oli O’Donoghue said the move aims to help buyers facing high deposits and rising prices, while stressing that affordability checks remain central to lending decisions.