This week’s top stories: Trump’s tariffs raise the prospect of four Bank of England rate cuts in 2025, and high fees, marketing, and advice quality are among the FCA’s broker focus. Explore these developments and more below:

Trump tariffs raise prospect of four Bank of England rate cuts in 2025

Markets expect the Bank of England to cut interest rates up to four times this year amid fears of a global trade war, following US President Trump’s announcement of tariffs on multiple countries.

Stock markets reacted sharply, with the FTSE 100 falling, and analysts warning of economic disruption. Money markets now anticipate an 80 basis point reduction in the Bank rate, with traders betting on a cut from 4.75% to 4.50% this week.

Economic data remains weak, with sluggish growth and inflation above target, reinforcing forecasts from Goldman Sachs and Deutsche Bank that multiple rate cuts are likely.

BoE rate reaction: Warning signs lead to cut

The Bank of England’s Monetary Policy Committee voted 7–2 to cut the base rate by 0.25% to 4.5% amid signs of economic weakness, with two members favouring a larger 0.5% cut. While domestic inflationary pressures are easing, inflation is forecast to rise to 3.7% next year, and growth expectations have been downgraded.

Analysts predict further rate cuts, with markets pricing in three reductions this year. The move is expected to support the housing market and provide relief to mortgage holders, while lenders have already begun adjusting rates in anticipation of the decision.

High fees, marketing and advice quality among FCA broker focus

The Financial Conduct Authority will focus on pressure selling, excessive fees, and advice quality as it monitors mortgage brokers over the next two years, emphasising the need to embed Consumer Duty guidelines.

The regulator highlights concerns over affordability assessments, suitability of secured loans, and conflicts of interest driving high-pressure sales cultures. It urges firms to review incentive schemes, ensure fair fees, and present balanced financial promotions.

Additionally, it warns against dormant appointed representatives exploiting regulatory status. The FCA will continue reviewing market practices, with a particular focus on improving customer vulnerability management.

MAB aims to double market share and mulls move to FTSE

Mortgage Advice Bureau aims to double its market share and revenue while considering a move to the FTSE-250 from the Alternative Investment Market. The firm hopes the shift will attract a wider range of investors and raise its profile.

Ahead of its capital markets day, MAB plans to outline new capital allocation criteria and expects to maintain or increase its dividend. CEO Peter Brodnicki highlighted the company’s decade-long growth and its commitment to significant expansion for shareholders and stakeholders in the coming years.

Renters’ Rights Bill moves to Whole House stage

The Renters’ Rights Bill is moving forward in Parliament, with Baroness Taylor of Stevenage confirming its commitment to a Committee of the Whole House for further scrutiny.

Introduced within the first 100 days of the new Labour government, the bill proposes significant reforms, including banning Section 21 no-fault evictions, restricting rent increases to once per year, and extending the Decent Homes Standard to the private rented sector for the first time.

Rob Jupp shares turmoil of losing first business

Brightstar Group CEO Rob Jupp has opened up about the collapse of his first business during the 2008 credit crisis, leaving him fearing he wouldn’t be able to pay his mortgage or son’s school fees.

Speaking on The Two Russells Podcast, Jupp recalled how his sub-prime lender OFM Group grew to 150 staff before losing 92% of its business in a month, forcing a sale to Savills PLC for under £100,000—far below a previous £40m offer. He reflected on the mental toll, regret over bottling up his worries, and how he used home equity to rebuild with Brightstar.

Major rate cuts at Halifax and Barclays plus reprice at Leeds

Halifax is cutting rates by up to 30 basis points on product transfers and further advances tomorrow, while increasing some remortgage rates. Barclays has reduced rates by up to 25bps across various residential deals, including a two-year fixed 85% LTV mortgage now at 4.79%.

Leeds Building Society is lowering selected residential fixed rates by up to 15bps and introducing new first-time buyer products but raising rates on buy-to-let, shared ownership, and other specialised lending. Some Leeds rates will also be withdrawn, with its current range available until midnight.

Peers call on FCA to pull ‘name and shame’ plan

A House of Lords committee has urged the Financial Conduct Authority to abandon its ‘name and shame’ plan, which would see firms publicly identified during investigations.

The committee criticised the FCA’s consultation process as a failure and argued the watchdog had not justified its departure from its current policy of only naming firms in exceptional cases.

Concerns include potential reputational damage to firms and market instability, with peers warning the move contradicts government aims to foster financial sector competition. The FCA says it will review the report before deciding on next steps.

Santander extends ERC new product waivers to 9 months

Santander has extended its waiver of early repayment charges for existing home movers to nine months, up from the previous six-month limit. The waiver applies if customers borrow the same amount or more, and will cover the charge in full; if they borrow less, it will only apply to the new loan amount.

This change affects both residential and buy-to-let borrowers. Mortgage applications submitted by 10pm on 2 February will not be impacted, but those submitted from 6am on 3 February will follow the new policy. Any material changes to applications after this date will also be assessed under the new terms.

Banco Santander chair says UK bank ‘not for sale’

Banco Santander’s global head, Ana Botin, has dismissed reports that the bank is considering selling its UK operations, stating, “the UK is not for sale.” This follows speculation that the Spanish lender may be exploring strategic options, including exiting the UK, due to dissatisfaction with post-2008 ringfencing regulations.

Botin emphasised that the UK remains a core market, contributing to the bank’s diversification and profitability. Santander UK, which serves 14 million customers and has a mortgage loan book worth £170.8bn, will continue to be a key part of the bank’s strategy.