Harrington appointed CEO of L&C Mortgages

L&C Mortgages has named Mark Harrington as its new Chief Executive Officer (pending regulatory approval). With over 20 years of experience, Harrington has progressed through various roles since joining the company in 2003, from mortgage and protection adviser to chief operating officer.

Pay growth ‘obstinately high’ as market points to inflation and rate fears 

UK average earnings growth moderated to 6% in the three months to February, per the Office for National Statistics. However, analysts warn that this “persistently high” pay data may impede inflation reduction and discourage early Bank of England rate cuts. Earnings dipped from 6.1% in the three months to January, surpassing economists’ 5.8% projection. Moreover, real average weekly pay rose by 2.1%, the quickest rate since September 2021, when adjusted for inflation.

  Rents rising at fastest ever level

In the UK, private rents continued their rapid ascent, outpacing inflation. Over the 12 months to March 2024, tenants experienced a 9.2% increase in housing costs, surpassing the previous month’s 9% rise. According to the Office for National Statistics, this marks the highest annual surge since 2015 when data collection began. Scotland saw the most substantial rent hikes, with the average monthly rent in England reaching £1,285, up by 9.1%. Similarly, Wales witnessed a 9% increase, bringing the average rent to £727, while in Scotland, rents soared to £947, reflecting a 10.5% surge.

Sticky’ inflation dampens expectations of early rate cut

In March, the Consumer Price Index (CPI) dipped to 3.2%, a decrease in the inflation rate, though slightly above expectations. Mortgage experts viewed this decline positively, yet cautioned that the persistent inflationary pressure might delay an anticipated rate cut by the Bank of England. The central bank has reiterated its stance on withholding interest rate reductions until substantial evidence indicates inflation moderation.

Brokers debate merits of small product transfers

Queries from brokers regarding small product transfers and advertising strategies were prominent discussion topics on a leading online industry forum. Cherry, frequented by over 35,000 financial professionals in the past year, highlighted the prevalence of discussions on product transfers, especially for small loan sizes. One broker initiated a thread to inquire about handling a £20,000 loan product transfer similarly to larger remortgages.

Santander launches BTL tracker loans, cuts resi rates by up to 24bps  

Starting on April 16, Santander for Intermediaries launched a range of buy-to-let two-year tracker loans and reduced selected residential rates by up to 24 basis points. The broker-only arm also trimmed selected buy-to-let fixed rates for purchases and remortgages, in addition to reducing fixed rates across its new business and product transfer residential loans.

One to One: Richard Merrett, managing director, Alexander Hall

Richard Merrett, MD of Alexander Hall, reflects on his career, emphasising the company’s culture and opportunities for growth. He prioritises talent development and tackling market challenges like rising interest rates and climate change. Merrett appreciates the industry’s collaborative nature and advises to focus on what can be controlled while maintaining a sense of humour.

HTB reveals new leadership team across property divisions

Specialist lender Hampshire Trust Bank (HTB) appoints Alex Upton as Managing Director of Specialist Mortgages. Neil Leitch, currently Commercial Director of Development Finance, succeeds Upton as Managing Director of that division. Jamie Jolly remains Director of HTB’s bridging division. Upton, who joined HTB in 2018, is recognized for her leadership in development finance, including recruitment and award wins.

Hinckley & Rugby appoints chief customer officer

Hinkley & Rugby appoints Danny Cranie as Chief Customer Officer, a newly created role aimed at shaping the mutual’s future. With 34 years of banking and building society experience, Cranie will enhance existing channels and develop the digital proposition. He has a track record of driving business growth and delivering exceptional customer outcomes.

Buy-to-Let Watch: BTL takes the bull by the horns

In 2023, the buy-to-let market faced challenges due to high finance costs, impacting landlords’ leverage and forcing tough decisions. However, 2024 has seen a resurgence, with lenders cutting rates and rejuvenating the refinance market. Despite swap-rate volatility, mortgage submissions are at record levels, indicating a healthy market. This resurgence benefits not only landlords but also society, providing vital rental housing amid increasing demand. Matthew Rowne discusses the shift from a bear market in 2023 to a bull market in 2024, highlighting the positive impact on the UK economy and society.