This week’s top headlines: Ground rent to be capped at £250 per year and the FCA seeks views on how to help close protection gap.

Explore these and other major industry updates below:

Campaigners fear government u-turn on ground rent cap

Leasehold campaigners have urged the Treasury not to dilute planned reforms, warning that lobbyists for freeholders are trying to block a cap on ground rents by citing risks to pension funds.

The National Leasehold Campaign argues this risk is overstated, noting that under 1% of pension assets are in ground rents and any impact would be minimal, while millions of leaseholders face significant and stressful costs.

Senior Labour figures have publicly backed reform, with warnings of political backlash if the government weakens its stance.

NatWest launches new 6x LTI lending criteria and WhatsApp channel for brokers

NatWest has boosted affordability by raising loan-to-income limits, allowing sole borrowers earning over £75,000 and joint applicants over £100,000 to borrow up to six times income at up to 75% LTV, while increasing the wider cap to 5.5 times salary for repayment mortgages. This could let a £75,000 earner borrow around £37,500 more.

The bank has also launched a WhatsApp channel for brokers to get quick support on applications and admin, saying the changes aim to make home buying easier and expand access to lending.

Ground rent to be capped at £250 per year, Starmer confirms

The government has confirmed it will cap leasehold ground rents at £250 a year and gradually reduce them to a peppercorn over 40 years, with Keir Starmer saying the move will cut costs for homeowners and deliver on a manifesto pledge.

Campaigners welcomed the cap as progress, especially for those with high new-build ground rents, but criticised the long timeline to reach nominal charges.

The wider reforms, including plans to abolish forfeiture and consult on banning new leasehold flats, are seen as steps towards overhauling the leasehold system, which critics argue unfairly burdens millions of homeowners.

Hampden Bank hires trio to expand presence in North and Midlands

Hampden Bank has strengthened its North and Midlands team by appointing Liz Williamson, Ian Noke and Claire Lattin as banking directors, bringing extensive experience from banks including RBS, NatWest, HSBC and Handelsbanken.

The hires support the bank’s regional expansion led by head of banking Haydn Aird, with the trio tasked with serving personal and commercial clients, as the bank builds a high-calibre team to meet the needs of wealthy individuals, families and their businesses.

FCA seeks views on how to help close protection gap

The FCA has urged insurers to help close the protection gap, as its interim review found 58% of adults lack pure protection cover despite the market generally working well for those who buy it.

While products are varied, claims are usually paid and prices stable, many consumers are unaware of their needs, unsure about products or worried about affordability. The FCA plans to work with industry to improve awareness, sales processes and switching, with a final report due in Q3 2026.

Industry figures, including Stonebridge CEO Rob Clifford, welcomed the review, saying more coordinated effort is needed to extend protection to more households.

Barclays, Accord and Coventry for Intermediaries make rate changes

Barclays is updating a range of purchase and reward mortgages from 29 January, launching a new two-year fix at 85% LTV at 3.75% and cutting several 90% LTV rates, while also reducing selected no-fee reward products.

Accord Mortgages is withdrawing and relaunching parts of its residential, product transfer and additional loans ranges around 28–30 January, removing some first-time buyer deals and extending end dates to May. Coventry for Intermediaries is lowering all limited company buy-to-let fixes for new borrowers, with other lenders including Shawbrook and TSB also making recent rate changes.

Shawbrook cuts rates by up to 50bps, TSB makes BTL changes

Shawbrook has cut rates across its SB1 specialist buy-to-let range, with single let deals now starting from 4.64% and HMO and MUFB products from 4.69%, following reductions of up to 50bps.

Selected five-year fixes at 75% LTV have also been lowered across different loan sizes, and HMO products can include commercial valuations for up to 10 occupants.

Meanwhile, TSB has launched new two- and five-year fixed portfolio BTL products for purchases and remortgages up to 75% LTV.

Just Mortgages launches adverse credit advise team

Just Mortgages has launched a 10-strong dedicated adverse credit team to support new and existing borrowers with credit blips, impaired credit or financial difficulty. The advisers have enhanced training in empathy, vulnerability and wellbeing, and will work alongside the firm’s client services division to provide tailored support.

Sales director Gareth Lowndes said demand for this type of help is rising and the team will improve access to advice and help clients move back toward mainstream lending where possible. Research from Pepper Money shows 9.26 million UK adults have had adverse credit in the past three years, and 16.6 million have experienced it at some point.

Landbay partners with AI-assisted conveyancer for new BTL range

Landbay has partnered with AI-assisted conveyancer Conveyd to launch five-year fixed buy-to-let remortgages with free legals and valuations, aimed at cutting costs and speeding up straightforward cases.

The new Premier products start at 5.09% at 75% LTV, with fees from £999 to £1,999, and are available on loans from £30,000 to £750,000 for landlords with up to 15 properties, including limited companies.

Landbay says the range is designed to reduce upfront costs and delays, while Conveyd combines AI and human expertise to streamline the legal process.

Principality announces £20m partnership with Rochdale

Principality Commercial has agreed a £20m funding deal with Rochdale Boroughwide Housing (RBH), its first loan to an England-based housing association.

RBH, the UK’s first mutual housing society, manages over 12,000 homes and will use the funds to maintain and improve social and affordable housing in east Greater Manchester.

Principality says the partnership supports its expansion into England and reflects its mutual ethos and focus on affordable housing.