This week’s top headlines: Surge in switching following FCA rule change and Rayner returns to Housing Secretary role.

Explore these and other major industry updates below:

Surge in switching following FCA rule change: Stonebridge

New FCA affordability rules are helping more borrowers switch to a new mortgage lender rather than remain with their existing provider, with Stonebridge research showing 98% of modified affordability assessments were used for external remortgages in Q1 2026.

The changes have enabled borrowers to secure larger loans at lower interest rates, with advisers playing a key role in helping customers access better deals.

Barclays, Halifax, HSBC and TSB hike rates by up to 20bps

Major lenders including Barclays, Halifax, HSBC, TSB and Skipton are increasing selected mortgage rates by up to 20 basis points as rising swap rates continue to push up funding costs.

Industry experts expect further repricing in the coming days, warning that ongoing geopolitical tensions and inflationary pressures are reducing the likelihood of near-term interest rate cuts.

Rayner returns to Housing Secretary role

Angela Rayner has returned as Housing Secretary in Prime Minister Andy Burnham’s new cabinet, replacing Steve Reed after less than a year in the role.

Her appointment comes as Burnham prioritises housing, with plans to accelerate housebuilding and deliver the largest council house building programme since the post-war era.

NatWest follows price hikes by major lenders

NatWest is increasing selected residential and buy-to-let mortgage rates by up to 20 basis points from tomorrow, joining a wave of major lenders repricing their products this week.

While most lenders are raising rates in response to higher funding costs, Shawbrook has bucked the trend with some reductions, although Keystone has also increased selected buy-to-let rates.

Santander becomes latest lender to push prices up

Santander is increasing fixed mortgage rates across its new business and most product transfer ranges from 22 July, while expanding its product offering with new 10-year fixed deals and additional new-build options.

Accord Mortgages is also raising many residential and buy-to-let rates, although some residential products will see reductions, while Newcastle for Intermediaries has relaunched its joint borrower sole proprietor mortgage range.

Santander UK’s mortgage book up £35.7bn after TSB deal

Santander UK’s mortgage book grew by £35.7bn to £204.7bn following its acquisition of TSB, making it the UK’s fourth-largest mortgage lender.

The bank reported strong lending growth, with gross mortgage lending rising to £14.7bn in the first half of 2026, while mortgage arrears remained low and asset quality stayed strong.

FOS names new chief executive and ombudsman

The Financial Ombudsman Service (FOS) has appointed Jenny Simmonds as permanent chief executive officer and James Dipple-Johnstone as permanent chief ombudsman following an open recruitment process.

The pair have led the organisation through a period of reform, including digital improvements, changes to fees and efforts to modernise the UK’s redress system.

Burnham makes first speech as prime minister, Reed steps down as housing sec

Andy Burnham has become the UK’s new prime minister and has pledged to publish a 10-year plan for Britain later this year, including a renewed focus on housebuilding and increasing council home delivery.

The move follows Steve Reed’s departure as housing secretary, with industry figures calling for clear plans to address housing shortages and deliver the government’s target of 1.5 million homes.

Vida launches Next Chapter Lending

Vida has rebranded its later-life mortgage proposition as Next Chapter Lending, introducing updated criteria to support older first-time buyers, home movers and borrowers with mortgages extending into retirement.

The changes provide clearer affordability guidance for brokers, including how income is assessed near retirement and a maximum mortgage term ending before age 86.

Finova promises ‘no more rekeying’ with one-click AI software

Finova is launching an AI-powered tool that will allow brokers to submit mortgage applications across lender portals without manually re-entering customer data.

The technology aims to reduce administration, minimise errors and free up advisers’ time by automatically transferring information from broker systems while keeping final approval with the user.