Lloyds Banking Group hires Dean as head of housing and sustainability

Lloyds Banking Group has appointed Andy Dean as its new Head of Housing & Sustainability. Dean joins from Nationwide Building Society, where he currently serves as Head of Intermediary Support & New Build for both the mutual and its buy-to-let arm, The Mortgage Works. Since 2018, he has led Nationwide’s new-build agenda and managed broker support teams, including a significant team of business development managers.

Mortgage rates between 3.5% and 4.5% will be ‘new normal’: Lloyds CEO

Charlie Nunn, CEO of Lloyds Banking Group, predicts that mortgage rates between 3.5% and 4.5% will persist as the “new normal,” even as base rates decrease. Nunn highlighted a shift from historically low rates of 1.5% to 2.5% over the past decade, suggesting market expectations do not foresee rates dipping below 3.5%. Therefore, he anticipates mortgages will settle within the 3.5% to 4.5% range moving forward.

HSBC set to be latest major lender to cut rates

Legal & General Retail hires Jefferies as market development director

Legal & General Retail has appointed Vikki Jefferies as its Market Development Director. In her new role, Jefferies will spearhead the expansion of Legal & General’s footprint and impact in the intermediated market. She will collaborate closely with partners, distributors, and advisers to introduce innovative, customer-centric solutions across the organization. Jefferies will specifically drive proposition developments in areas such as high value, business protection, and core distribution propositions.

NatWest cuts deposits for new-build buyers by £20k

NatWest has announced measures to potentially reduce average new build deposits for residential borrowers by approximately £20,000. The high street bank has increased borrowing limits for new build homes, lowering the upfront deposit required for these purchases. Their updated maximum loan-to-value rates for new build properties are now 90% for houses (up from 85%) and 85% for flats (up from 75%). Currently, the average price of a new build home in the UK stands around £394,000, according to Land Registry data.

Together promotes Ward to personal finance head of intermediary sales

Together has appointed Maeve Ward as Head of Intermediary Sales for Personal Finance. In her new role, Ward will oversee the specialist lender’s intermediaries team, supporting broker partners across various personal finance products including first and second charge mortgages, regulated bridging loans, and consumer buy-to-let deals. Her responsibilities include keeping brokers informed about the company’s products, optimising customer service through technology, and upholding the firm’s underwriting standards.

Households under mortgage pressure forecast to rise: BoE

Households spending “a high proportion” of their incomes on mortgage payments are projected to increase slightly over the next two years, cautioned the Bank of England. In its June financial stability report, the central bank’s Financial Policy Committee highlighted that many UK households, including renters, are facing pressure from rising living costs and higher interest rates. The base rate has remained at a 16-year high of 5.25% since last August, with the last rate cut occurring in March 2020.

Barclays cuts resi rates by 0.31%

Barclays has implemented rate cuts on its residential two- and five-year products, effective 25 June. Significant reductions include the premier two-year fixed at 60% LTV with an £899 product fee, where rates have dropped from 4.98% to 4.67%. Similarly, the two-year fixed at 60% LTV with the same fee structure now stands at 4.68%, down from 4.99%. Another notable reduction is seen in the two-year fixed at 75% LTV with an £899 product fee, lowered from 5.05% to 4.75%. These adjustments aim to provide more competitive mortgage options to borrowers.

Labour planning reforms ‘technically difficult, politically painful’: IFS

Labour’s efforts to enact planning reforms if it wins the next general election were described as “technically difficult and politically painful” by an influential think tank. Led by Keir Starmer, the official opposition has proposed significant planning initiatives in its manifesto, aiming to accelerate housebuilding. This includes plans for new towns, appointing 300 planning officers, and constructing 1.5 million homes in five years. In comparison, the Conservatives aim to build 1.6 million houses over the same period, despite only achieving 1 million homes in the last five years.

Interest-only mortgages fell 5.4% in 2023: UK Finance

According to the latest data from UK Finance, interest-only homeowner mortgages declined by 5.4% to 664,000 last year compared to the previous year. Concurrently, partial interest-only home loans saw a 9.9% decrease to 200,000 over the same period. This marks a significant reduction in the total interest-only mortgage stock, which has dropped by 73% in number and 56% in value since 2012 when UK Finance began collecting data. These figures indicate a notable shift in mortgage preferences and financing strategies among homeowners in the UK over the past decade.