Two-year fix with 40% deposit cheapest rate on market: Rightmove  

Rightmove’s latest mortgage tracker revealed the lowest rate on the market was a two-year fixed deal at 3.86% for those with a 40% deposit. While average rates for this bracket fell, first-time buyers with smaller deposits still faced higher borrowing costs. The average five-year fix at 95% LTV stood at 5.40%, down slightly on the year. Experts noted that affordability remained stretched, with rising deposit requirements and stubbornly high rates making it harder for new buyers to enter the market.

BoE launches catastrophe stress tests for seven largest lenders

The Bank of England launched stress tests for the UK’s seven largest lenders to assess resilience against severe economic shocks. The scenarios included a 28% house price drop, 5% GDP decline, 8.5% unemployment, and 8% interest rates. Barclays, HSBC, Lloyds, and others—covering 75% of UK lending—participated. The biennial tests replaced annual checks, aiming to ensure banks could absorb shocks and support households. Results, due in Q4 2025, would inform capital buffer settings and broader risk assessments. Experts said the scenarios reflected recent global economic turmoil.

Lenders ‘too cautious’ on FTB loans: FCA

The FCA stated lenders had been “too cautious” in approving first-time buyer mortgages, claiming they could use more flexibility in stress tests under existing rules. CEO Nikhil Rathi argued high rents proved many could afford repayments, yet strict affordability checks blocked them. While lenders sought relaxed loan-to-income limits, the FCA warned easier lending would increase defaults. The regulator pledged to consult on rule changes but emphasised trade-offs, as mortgage arrears rose despite low repossessions. The review followed government pressure to boost growth by easing financial regulations.

Disclosure rules ‘too prescriptive’, firms tell FCA

Mortgage firms told the FCA that current disclosure rules were “too prescriptive”, limiting their ability to tailor information to customers’ needs or adapt to digital channels. Respondents argued that strict regulations hindered innovation and clarity in feedback published on consumer duty requirements. The FCA acknowledged concerns and confirmed plans to review lending and advice rules, aligning them with consumer duty. A May consultation will propose easing remortgaging and term reduction processes, while a June discussion paper will explore affordability testing, later-life lending, and consumer information reforms.

FCA probes protection market commissions  

The FCA investigated whether commission structures in the pure protection market offered fair value to consumers. The regulator expressed concerns that adviser incentives might negatively influence product recommendations, pricing, and consumer outcomes. The probe focused on term assurance, critical illness cover, income protection, and whole-of-life insurance. Initial findings were expected by year-end. Industry figures called for balanced commission flexibility, improved consumer trust, and simpler purchasing processes. The FCA emphasised ensuring vulnerable customers received fair treatment in this £4.85bn claims market.

Stamp duty rise for every region revealed

Homebuyers in England faced higher stamp duty bills from 1 April as the nil-rate threshold dropped from £250,000 to £125,000, analysis by Coventry Building Society showed. The average tax bill rose from £2,028 to £4,528, with regional variations seeing Londoners paying £17,446. First-time buyers remained exempt below £425,000. Experts warned the hike could force buyers to reduce deposits or borrow more. The Treasury had collected £32.3bn in property tax since September 2022. Advisers urged buyers to budget carefully for the changes.

FCA vows to become a ‘smarter regulator’ in five-year plan 

The FCA pledged to become a “smarter regulator” in its five-year strategy, focusing on trust, growth and efficiency. It is committed to supporting economic growth, improving consumer outcomes and combating financial crime. The plan included streamlining supervision, digitising authorisation processes and reducing bureaucratic burdens for compliant firms. Chair Ashley Alder emphasised balancing risk with opportunity, while CEO Nikhil Rathi vowed to deliver reforms at pace. The strategy aimed to foster innovation while maintaining high standards in UK financial services.

UK inflation falls to 2.8% in February: ONS

UK inflation unexpectedly fell to 2.8% in February, down from January’s 3%, driven by lower clothing and housing costs. The drop came ahead of the Chancellor’s Spring Statement, though economists warned of potential April price rises. The Bank of England maintained interest rates at 4.5%, with one member voting for a cut. Mortgage experts suggested the inflation dip might ease pressure on borrowers but cautioned against expecting significant rate cuts soon. The Chancellor faced challenges balancing spending cuts with economic growth amid lingering inflationary pressures.

The Mortgage Lender launches 80% LTV BTL product and cuts rates

The Mortgage Lender expanded its buy-to-let range by launching an 80% LTV product and increased its first-time landlord loan limit from £350,000 to £500,000. It reduced selected BTL rates by 0.05% and reintroduced two-year fixed products at 75% LTV. Residential rates were also cut by up to 0.10%. Head of sales Chris Kirby stated the changes aimed to support the evolving BTL market amid upcoming regulatory changes. The moves reflected TML’s commitment to addressing landlord challenges in a complex property environment.

Spring Statement preview: Housing checklist   

Chancellor Rachel Reeves faced pressure to support housing in her Spring Statement amid economic challenges including slowed growth and US tariff impacts. The government maintained its 1.5 million homes target, announcing £600m for construction training and planning reforms. The property sector sought stamp duty deadline extensions, mortgage rule easing, and Lifetime ISA reforms. With inflation and fiscal constraints limiting spending, observers awaited measures on green home upgrades and first-time buyer support. The statement aimed to balance growth pledges with economic realities as the UK navigated global uncertainty.