Interest rates will not go close to zero again: Lloyds

Lloyds Bank CEO Charlie Nunn predicts that the era of ultra-low interest rates is over. While mortgage rates are expected to fall from their current highs, a return to near-zero levels seen in the 2010s is unlikely. This view is supported by experts at the Mortgage Business Expo, who believe 3.5% is the “new normal” even if the Bank of England makes further base rate cuts. Despite the higher cost of borrowing, Nunn highlights increased financial security for most Britons, with more savings and fewer loan struggles.

Reeves mulls CGT hike on share sales rather than second homes: Reports  

Chancellor Rachel Reeves is reportedly planning to increase Capital Gains Tax (CGT) on share sales from 20% to 24% in the upcoming Budget. This move aims to align the rate with that of property sales and generate additional revenue for the government. Earlier proposals for a steeper CGT hike have been dismissed due to concerns over potential negative impacts on investment and limited revenue gains. Experts are divided on whether this change will be effective in boosting Treasury coffers.

TSB launches 1yr fixed product transfer range

TSB is launching a new one-year fixed-rate mortgage at 5.95% for residential and buy-to-let customers. This offers short-term certainty in a volatile market, but borrowers risk higher payments when the fixed term ends. TSB is also increasing rates on some five-year fixes and relaunching its two-year tracker product with more flexible terms. Experts suggest that one-year fixes could become more common as borrowers seek flexibility amidst interest rate uncertainty.

NatWest increases new business and additional borrowing rates by 0.30%

NatWest is raising mortgage rates by up to 0.30% across its new business and additional borrowing products. This includes increases to two- and five-year fixed rates for purchases and remortgages, as well as first-time buyer, help-to-buy, and buy-to-let products. The changes come into effect on October 16th and reflect a broader trend of rising mortgage rates in the UK.

Santander makes multiple changes to fixed rates

Santander is making a series of adjustments to its fixed-rate mortgages. Some residential remortgage and large loan fixed rates are being reduced by up to 0.13% and 0.10%, respectively. However, selected residential, new build, green, buy-to-let, and green buy-to-let fixed rates will increase by up to 0.22%. Product transfer rates are also affected, with some residential rates rising by up to 0.12% and some buy-to-let rates increasing by 0.03%.

Industry demands stamp duty reform in Budget to boost housing market

A group of lenders and mortgage brokers are urging Chancellor Rachel Reeves to reform stamp duty in the upcoming Budget. They propose a stamp duty refund for homebuyers who make energy efficiency upgrades to achieve an EPC rating of C or higher. This move aims to encourage greener homes, boost the housing market, and contribute to the UK’s net-zero goals. Currently, 60% of UK homes fall below the desired EPC rating.

Inflation preview: Prices ease to remain ‘on track’ for rate cut  

Inflation is predicted to fall to 2.1% in September, paving the way for another Bank of England base rate cut in November. Lower fuel prices and cautious consumer spending are contributing to easing inflation, although rising rents and potential Budget announcements pose risks. The Bank remains cautious about wage growth but may cut rates further if inflation continues to fall.

Starmer kicks off brownfield building programme

Prime Minister Keir Starmer has launched a £68 million brownfield development fund to support the construction of 5,200 new homes across 54 local councils. This initiative is part of the government’s goal to build 1.5 million homes over the next five years, prioritizing brownfield sites while remaining open to green belt development where necessary. Experts emphasize the need for a comprehensive housing strategy to address the UK’s significant housing shortage.

Skipton 100% track record mortgage for FTBs

Skipton Building Society is launching a new 100% LTV “Track Record” mortgage aimed at first-time buyers struggling to save a deposit. Available from October 16th, the five-year fixed-rate mortgage comes with a 5.44% interest rate, £1,000 cashback, and no fee. This product aims to help those trapped in the rental cycle achieve homeownership by removing the barrier of a large deposit.

Inflation falls to lowest level in three years at 1.7%: ONS

UK inflation fell to 1.7% in September, its lowest point in over three years and below the Bank of England’s 2% target. Lower transport costs, particularly airfares and motor fuels, contributed to the decline. This increases the likelihood of a base rate cut in November, although experts caution that mortgage rates may not immediately follow suit. Focus now shifts to the upcoming Budget and the Bank of England’s November meeting for further clues on the future direction of interest rates.