FCA plans to hike broker fees to £23m ‘a slap in the face’: Ami

The Association of Mortgage Intermediaries criticizes the FCA’s plan to increase broker fees by 9.2% to £23m, calling it “a slap in the face” for intermediaries. The FCA’s proposal, outlined in the ‘FCA regulated fees and levies: rates proposals for 2024/25’ consultation paper, includes brokers in block A.18 alongside advisors, arrangers, and dealers, with their levy set to rise from £21m this year.

 Morris among Tandem Bank sales team made redundant

Tandem Bank has made its first charge sales team redundant as part of its decision to scale back its lending services. The announcement was conveyed through a LinkedIn post by Roger Morris, the director of sales and distribution in the bank’s mortgage division, who himself is among those affected by the layoffs. Morris stated that the decision to downsize the bank’s first charge lending was made by the lender’s board last week.

Would-be FTB lender OnLadder shuts doors before it opens

OnLadder, a lender targeting first-time homebuyers, has ceased operations before its official launch due to insufficient funding to support lending activities. Despite establishing itself as a broker-centric deposit lender and launching a website in 2021, the company’s plans to offer homes to first-time buyers with 5% deposits have been abandoned. OnLadder initially opened a waiting list for potential borrowers, but it has now announced the cancellation of its formal launch, citing challenges in attracting adequate capital to sustain its operations. The decision is attributed to concerns over elevated inflation and interest rates.

 Market Harborough hires Iain Smith as head of distribution

Market Harborough Building Society has named industry veteran Iain Smith as its new head of distribution. With extensive experience in both banking and mutual sectors, Smith transitions from his role as head of intermediaries at State Bank of India, which he held for two years. Previously, he held senior positions at Bank of Ireland and Yorkshire Building Society, where he played a pivotal role in establishing its broker arm, Accord.

Markets betting in the ‘wrong direction’ on rate cuts: MPC’s Greene  

UK traders speculating on Bank of England interest rate cuts this summer are misguided, according to Monetary Policy Committee member Megan Greene. She asserts that any easing is still distant. These remarks from the MPC’s hawkish external member coincide with US inflation climbing to 3.5% recently, surpassing the 3.4% consensus. Consequently, US traders have adjusted their forecasts, now anticipating two Federal Reserve rate cuts this year instead of three.

Market Watch: Things are bustling busily

As Q2 begins, the market shows promise after a sluggish start to the year. Despite challenges, there’s optimism with inflation easing and mortgage rates stabilizing. Andrew Montlake, a director at Coreco, highlights the cautious approach of the Bank of England. As activity picks up post-Easter, there’s resilience in the property market. Amidst industry innovations and mental health advocacy, let’s focus on positive change.

Housing bounce back predicted: Rics  

Surveyors foresee property prices bouncing back in both the short and long term, per the latest RICS housing survey. March’s report indicates improving sentiment, driven by better market conditions, increased property listings, and rising buying demand. House prices have stabilized after last year’s declines. Buyer enquiries continued to rise, with a net balance of +8% reporting an increase in March, the most positive result since February 2022.

BoE look ahead: Bernanke Review  

Former US Federal Reserve Chair Ben Bernanke is set to release his long-awaited review of the Bank of England’s rate-setting guidance on Friday, amid heavy criticism of the central bank’s current forecasts. It’s anticipated that he will suggest transitioning to a flexible set of economic “scenarios” for forecasting. Bernanke, a Nobel Prize-winning economist, is expected to recommend abandoning the Bank’s current “fan” forecasts and graphs, which display mean, modal, and median projections across various economic variables.

Santander launches 40-year interest-only loans in criteria revamp   

On April 9, Santander introduced several changes to its lending criteria, including offering 40-year interest-only mortgages. The high street lender extended the maximum term for interest-only mortgages from 25 years to 40 years, aligning it with its capital and repayment mortgages. Additionally, Santander allowed applicants with a combined overall income of £200,000 or more to access up to 75% loan-to-value (LTV) products, removing the previous requirement for a single applicant to earn at least £250,000.

Broker industry revenue to exceed £2.5bn by 2030: Octane

The latest research by specialist property lender Octane Capital indicates positive growth prospects for the mortgage broker industry in 2024 and beyond. Over the last decade, the UK’s mortgage broker industry has seen a significant 110% growth, with forecasts suggesting a further 32% increase by 2030, reaching a market size exceeding £2.5 billion. Octane Capital’s analysis of annual revenues since 2013 provides insights into the sector’s performance and its implications for the future of UK brokers in both the short and mid-term.