Catalyst launches development finance product

Catalyst Property Finance has launched a new development finance product with tracker rates starting from 5.25% plus BRR, aimed at residential and mixed-use schemes of up to 20 units in England and Wales.

The lender will offer up to 85% loan-to-cost and 65% LTGDV on loans between £250,000 and £5m, with each case handled by a dedicated BDM and underwriter.

The firm said the product uses institutional development funding and is designed to provide higher leverage with competitive pricing for small-to-mid sized ground-up developments.

Mortgage prices may rise as Iran conflict bumps up gilt rates

Rising gilt yields following the escalating Iran conflict could force mortgage lenders to increase rates, experts warn.

After US and Israeli strikes on Iran and retaliatory attacks in the Gulf, five-year gilts rose about 19bps overnight, pushing up lenders’ funding costs and prompting some to review pricing.

Analysts say the conflict could disrupt energy supplies, adding economic uncertainty and reducing the likelihood of a near-term base rate cut.

Brokers warn lenders may take a more defensive approach, meaning borrowers nearing the end of fixed deals should consider securing a new rate quickly in case prices rise.

Up to 37% of flats ‘unmortgageable’ due to charges, MPs told

Leasehold campaigners warn that up to 37% of flats could be unmortgageable after research showed many have high service charges.

Data from Hamptons found more than a third of flats in England and Wales have charges exceeding 1% of the property’s value, a level some lenders will not accept. Average service charges reached £2,405 in 2025, up 4.6% year-on-year and 56% over the past decade, outpacing inflation.

Campaigners say this is creating a crisis for existing leaseholders who may struggle to sell their homes and risk being left behind as reforms focus on promoting commonhold for new properties.

Spring Statement: Chancellor backs cheaper housing push and lower mortgages

Rachel Reeves reaffirmed the government’s commitment to affordable housing in her Spring Statement, saying typical fixed-rate mortgages have fallen by about £1,300 a year since Labour took power due to falling rates from the Bank of England.

She pointed to forecasts from the Office for Budget Responsibility showing GDP growth of 1.1% in 2026, rising to 1.9% by 2030.

Property and mortgage industry figures welcomed the low-key statement, saying stability helps market confidence, though some analysts warned the outlook could be affected by geopolitical tensions and rising borrowing costs.

HSBC and Coventry hike rates as Middle East conflict pushes costs up

HSBC and Coventry Building Society have announced mortgage rate increases as conflict in the Middle East pushes up funding costs.

HSBC will raise rates from tomorrow, while Coventry will increase fixed rates for residential and buy-to-let borrowers from 8 March. Brokers warn more lenders could follow, so borrowers may want to secure a deal soon.

Leasehold has created ‘crisis’ in sales of flats, MPs told

Campaigners have warned MPs that rising ground rents and service charges have created a “crisis” in the flats market, leaving many leaseholders unable to sell.

Harry Scoffin of Free Leaseholders told the UK Housing Committee that leasehold is a “toxic tenure” making flats harder to mortgage and sell.

He urged the government to move faster to scrap leasehold, with Angela Rayner and Michael Gove also calling for stronger action against freeholders.

Santander UK lowers ‘My First Mortgage’ rate by 0.20%, among other cuts

Santander UK has cut the rate on its My First Mortgage by 0.20% to 4.99%, just weeks after launching the product for first-time buyers.

The deal requires a £10,000 minimum deposit, offers £250 cashback with no fee, and allows borrowing up to £500,000.

The bank has also reduced many 85%+ LTV first-time buyer rates by up to 0.38%, including a two-year fix at 3.99% at 90% LTV, while some home mover and new-build products have fallen by up to 0.33%.

Nationwide becomes latest lender to increase rates

Nationwide Building Society will increase selected fixed mortgage rates by up to 0.25% from tomorrow, affecting deals for first-time buyers, home movers, remortgages, switchers and additional borrowing.

Experts say the move follows rising swap rates linked to the Middle East conflict, which has pushed up funding costs for lenders and raised inflation concerns.

Brokers warn other lenders may also increase rates if market uncertainty continues.

Rayner and Gove urge govt to end leasehold ‘extortion’ and face down legal threats

Former housing secretaries Angela Rayner and Michael Gove have urged the government to press ahead with leasehold reforms to cap ground rents, despite legal threats from freeholders.

Speaking to the Housing Committee, both said concerns about investor confidence or pension fund exposure were overstated. They stressed the reforms are backed by Parliament and called on ministers not to be deterred, dismissing claims that ground rents are needed to fund fire safety as “absolute rubbish.”

Nationwide doubles down on green home improvements with 0% borrowing extension

Nationwide is doubling its 0% Green Additional Borrowing loans from 5,000 to 10,000 households, letting mortgage customers borrow £5,000–£20,000 for energy-efficient home improvements.

Since June 2023, around £60 million has been lent, with solar panels and insulation most popular.

The initiative aims to help more homeowners retrofit their homes, though experts say broader green finance solutions are still needed.