Nationwide and Rightmove launch property lending check

Nationwide and Rightmove launched a digital “property lending check” feature to help homebuyers assess mortgage eligibility before viewing a property. The tool evaluated risks like flooding or short leases, providing real-time lending likelihood. Previously, buyers only knew borrowing amounts, not property-specific eligibility. The initiative aimed to streamline the UK property market, reducing delays. Experts praised the feature for preventing late-stage mortgage rejections. Rightmove planned further enhancements, while Nationwide called it a natural progression from their mortgage-in-principle tool.

Knight Frank lifts house price forecast as base rate cuts ‘underpin’ demand

Knight Frank raised its UK house price forecast to 3.5% for 2025, up from 2.5%, citing expected base rate cuts as a key demand driver. The Bank of England’s rate reduction to 4.25% and market predictions of further easing boosted market confidence. Halifax reported a 0.3% monthly price rise in April. Rental forecasts also increased slightly due to the tight supply. Knight Frank projected cumulative price growth of 22.8% over five years.

   Nationwide latest to adjust stress rates following FCA clarification

Nationwide reduced its mortgage stress rates by 0.75 to 1.25 percentage points following FCA guidance allowing lenders to assess affordability against product rates rather than revert rates. The change enabled borrowers, particularly first-time buyers using its Helping Hand scheme, to access higher loans, averaging £28,000 more. However, the Bank of England’s 15% loan-to-income cap limited its impact. Experts praised the move but called for broader regulatory reforms to further ease affordability constraints.

Average two-year fix falls to lowest rate since 2022: Moneyfacts

The average two-year fixed mortgage rate fell to 5.18% in May 2025—its lowest since September 2022—while five-year fixes dropped to 5.10%. Moneyfacts reported declining swap rates drove cuts, narrowing the gap between short- and long-term deals. Product availability rose to 6,993, the highest since 2007, though shelf-life shortened to 19 days. Experts noted improved options for first-time buyers but cautioned borrowers might still prefer longer fixes amid market volatility.

New rules for letting agents come into force tomorrow

New rules requiring letting agents to screen all landlords and tenants against UK financial sanctions lists took effect on 14 May 2025. Agents had to verify identities and report matches to authorities, removing the previous €10,000 (£8,275) rent threshold. Non-compliance risked £1 million fines. Goodlord warned that many landlords felt unprepared for the changes, which aimed to prevent sanctioned individuals from renting properties. The mandate applies to instruction for landlords and post-offer for tenants.

Perenna renews credit line with ABN AMRO

Perenna Bank renewed and expanded its £200 million warehouse credit facility with ABN AMRO, extending the agreement until July 2026. The deal, building on their April 2024 partnership, aimed to support Perenna’s growth in the UK mortgage market. COO Colin Bell stated the funding would enable more lending for innovative products addressing housing affordability. The move reinforced Perenna’s mission to expand homeownership opportunities through flexible financing solutions.

Halifax cuts rates, including 2-year fix at sub-4%

Halifax reduced mortgage rates on 22 April 2025, introducing a sub-4% two-year fixed rate at 3.94% (60% LTV, £999 fee). The lender also cut five-year fixes to 4.27% (80% LTV, £999 fee) and 4.38% (80% LTV, no fee). Two-year products at 90-95% LTV fell 0.19% to 5.15% (no fee). The reductions made Halifax one of the most competitive lenders in the market for both homebuyers and remortgagers.

L&C Mortgages adopts One Mortgage System’s CRM solution

London & Country Mortgages implemented One Mortgage System’s CRM solution on 13 May 2025 to streamline operations and enhance customer service. The fully integrated system improved workflow efficiency and data management for the brokerage. OMS CEO Dale Jannels praised L&C’s reputation, while L&C CEO Mark Harrington highlighted the platform’s flexibility in meeting their needs. The partnership aimed to optimise internal processes and elevate customer experiences through technological innovation.

Barclays launches lowest rate this year at 3.85%, Principality cuts resi and JBSP rates

Barclays launched its lowest 2025 rate at 3.85% on 12 May, cutting multiple products including a fee-free remortgage (4.18%, down 19bps) and green mortgage (4.08%). Principality also reduced residential rates by up to 0.21%, with JBSP cuts including 0.20% on two-year 75% LTV deals. The moves intensified competition as Barclays’ five-year fix fell to 3.99% and Principality trimmed cashback products, signalling a broader market rate decline.

Opinion: FCA’s latest CP makes a nonsense of Consumer Duty

The FCA’s CP25/11 proposal to remove mandatory mortgage advice requirements risked undermining Consumer Duty principles, argued Sebastian Murphy. The 13 May 2025 opinion piece warned that the change favoured lenders seeking to reduce broker involvement, jeopardising consumer protections. Murphy highlighted advisers’ holistic role in identifying risks like protection gaps or affordability issues, now threatened by execution-only options. Despite recent Consumer Duty emphasis on advice quality, the consultation appeared to prioritise cost savings over suitable outcomes, potentially harming both consumers and the advice sector.