This week’s top headlines: Scotland to bring in ‘mansion tax’ on £1m-plus homes and Nationwide launches lowest rate at 3.50%
Explore these and other major industry updates below:
Scotland to bring in ‘mansion tax’ on £1m-plus homes
The Scottish Government will introduce a “mansion tax” on homes valued above £1m from April 2028, delivered through higher council tax bands following a targeted revaluation of high-value properties.
Two new bands will apply to homes worth £1m–£2m and over £2m, though ministers have yet to confirm the additional cost to owners. Commentators say the measure, expected to affect fewer than 1% of households, is more about fairness and signalling than revenue raising, while warning that it does little to address Scotland’s wider housing supply challenges.
Ombudsman reminds buyers of right to choose broker after estate agent scandal
The Property Ombudsman has reminded homebuyers that they are free to use a mortgage broker, solicitor and insurance provider of their choice, warning that “conditional selling” by estate agents is prohibited.
New consumer guidance stresses that agents must pass on all offers and cannot pressure buyers to use in-house services or restrict viewings based on funding arrangements.
The Ombudsman said it will continue to monitor complaints and enforce its code to ensure fair treatment in the property market.
Nationwide launches lowest rate at 3.50%, Clydesdale trims prices
Nationwide has cut fixed mortgage rates by up to 0.20% for first-time buyers and home movers, taking its lowest rate to 3.50% from 15 January, as competition among major lenders continues to intensify.
The reductions span two-, three- and five-year fixes across a range of LTVs, with additional cashback and green incentives available.
Elsewhere, Clydesdale Bank has lowered its variable and discounted rates by 0.25% and eased criteria on larger loans, adding further momentum to an increasingly competitive mortgage market heading into 2026.
Falling rates and product choice growth sets a positive stage for 2026: Moneyfacts
Moneyfacts says falling mortgage rates in 2025 and a sharp rise in product choice have set a positive backdrop for the market in 2026, with deal availability at its highest level since 2007 and near 18-year highs at 90% and 95% LTV.
Fixed rates remain below 5%, with the average two-year fix down to 4.83% and overall mortgage rates significantly lower year on year. Moneyfacts adds that easing affordability pressures, strong lender competition and further expected base rate cuts should support activity, particularly for first-time buyers and remortgagers seeking to move off high revert rates.
Metro Bank increases lending to up to 6x income
Metro Bank has increased its income multiples to boost affordability, allowing borrowers earning £70,000 or more to borrow up to five times income, while eligible professionals can now access up to six times income.
The bank has also lowered stress tests on two-year fixed rates to support larger loan sizes, as part of efforts to widen access to its residential range, alongside a recent cut to its buy-to-let minimum loan size.
Bank of Ireland extends max LTI across range
Bank of Ireland for Intermediaries is raising its maximum loan-to-income to six times income across its Bespoke mortgage range, subject to strict criteria including minimum incomes, loan size, LTV limits and credit requirements.
The lender has also increased maximum loan sizes to up to £2.5m at 80% LTV, aiming to better support borrowers with complex incomes and non-standard needs.
Santander increases prices, NatWest trims rates
Santander has increased fixed rates across new business and product transfer ranges by up to 0.10%, affecting home movers, first-time buyers, remortgagers and buy-to-let borrowers at various LTVs.
In contrast, NatWest has cut rates across selected two- and five-year fixed purchase deals, with reductions of up to 14 basis points, particularly at higher LTVs.
Rise of BTL transactions through limited companies set to continue: Paragon
Younger landlords are driving continued growth in buy-to-let properties held in limited companies, according to Paragon.
A survey of 500 landlords found 63% plan future purchases via SPVs, rising to 100% among those aged 25–34 and falling with age. A third also plan to transfer personally owned properties into company structures.
Paragon says tax changes have fuelled the shift, which is set to continue as newer landlords adopt limited company ownership early.
more2life announces partnership with Countrywide
Later life lender more2life has partnered with Countrywide Surveying Services, adding it to the valuer panel for its Horizon product range.
The move reduces reliance on a single valuation provider and expands choice for advisers. more2life said the partnership supports its focus on offering greater flexibility and options in the later life lending market.
Exciting new chapter and new venue for Mortgage Strategy Awards
The Mortgage Strategy Awards has announced a new venue for 2026, with the flagship event taking place at the Royal Lancaster London on Wednesday 13 May.
The move marks a new chapter for the awards, reflecting their evolution and renewed focus on celebrating excellence across mainstream mortgage lending and protection.
Organisers say the new venue will deliver a more contemporary, premium experience while maintaining the awards’ status as the industry benchmark.
