This week’s top headlines: Barclays chops rates by up to 66bps amid further lender cuts and families could face £120,000 CGT bill on inherited homes

Explore these and other major industry updates below:

Barclays chops rates by up to 66bps amid further lender cuts

Barclays is cutting residential mortgage rates by up to 66 basis points from tomorrow, with the largest reductions on purchase deals, while Foundation and Accord are lowering buy-to-let rates as lender competition intensifies.

Barclays’ biggest cut is to a two-year fixed at 90% LTV, reduced from 5.45% to 4.79%, while Foundation has trimmed selected buy-to-let products by up to 25bps and Accord is reducing all five-year landlord fixes up to 75% LTV by 8bps.

Lloyds launches loyalty deals with 20bps off for Premier customers

Lloyds has launched a new Loyalty Premier mortgage range offering Premier current account customers a 20bps discount on equivalent Halifax rates, while also cutting rates across Halifax and BM Solutions by up to 15bps.

The changes come amid a wider wave of lender repricing, with falling swap rates below 4% fuelling stronger competition and prompting mortgage experts to suggest there could be further rate reductions if funding costs remain low.

Families could face £120,000 CGT bill on inherited homes

Rathbones has warned that scrapping the Capital Gains Tax (CGT) uplift on death could leave families facing tax bills of up to £119,280 when selling inherited property, as speculation grows over possible tax reforms under a future Andy Burnham government.

The firm also cautioned that aligning CGT rates with income tax could significantly increase liabilities for higher earners, while stressing that investors should continue to prioritise long-term financial planning rather than making decisions based solely on potential tax changes.

Brokers wary of interest-only for FTBs despite FCA stance

New research from Gen H suggests advisers remain cautious about recommending interest-only mortgages to first-time buyers, with nearly half of the UK’s top brokerages writing none in 2025 despite the FCA consulting on widening access.

While Gen H says its part-and-part interest-only product has seen stronger uptake by helping overcome affordability barriers, industry figures argue that lingering stigma continues to limit wider adoption, even under today’s stricter regulatory framework.

FCA calls for free AI-powered money service

An FCA-commissioned review has urged the creation of a free, AI-powered public-interest money service to improve financial capability and help tackle the advice gap, while warning that AI also poses growing risks from fraud, scams and consumer harm.

The report recommends the FCA work with government and industry to develop a trusted AI service, cautioning that without it, consumers may increasingly rely on unregulated tools for financial guidance, potentially widening inequality and exposing users to poor outcomes.

Bank rate rise ‘increasingly likely’ after renewed fighting in Middle East: John Charcol

Rising tensions in the Middle East could increase the likelihood of a Bank of England rate rise at its July or September meeting, according to John Charcol’s Nicholas Mendes, as higher oil prices risk pushing inflation upwards.

He warns that renewed inflationary pressure could reverse recent mortgage rate cuts by driving up swap rates and increasing lenders’ funding costs, potentially making it harder for borrowers to secure cheaper fixed-rate deals.

Nationwide, Virgin and GB Bank reduce rates

Nationwide is cutting mortgage rates further across its fixed and selected tracker ranges, with reductions of up to 0.19% for remortgage, first-time buyer and existing customer products.

Virgin Money and GB Bank have also announced rate cuts across residential and buy-to-let deals, continuing a wider trend of lenders reducing prices as competition in the mortgage market strengthens.

Growing number of landlords go full-time: Pegasus

The private rental sector is becoming increasingly professional, with average landlord portfolios rising to 7.3 properties and more landlords operating as full-time businesses, according to Pegasus Insight.

Larger portfolio landlords are also driving mortgage demand, with many planning to refinance and seeking specialist lending solutions as limited company ownership and more complex borrowing needs become increasingly common.

Stamp duty reform could unlock 300,000 homes within a year: Jackson-Stops

Removing stamp duty could unlock more than 300,000 owner-occupied homes in England within a year and over 750,000 within three years, according to Jackson-Stops, as upfront costs continue to discourage people from moving.

The report also highlights that reducing uncertainty around the buying process could release further housing supply, with transaction delays, mortgage rates and economic concerns all contributing to low mobility.

Coventry to raise rates on resi deals and trim others

Coventry Building Society is increasing rates on a range of residential fixed mortgages this week, including several two-, three- and five-year deals for new and existing borrowers.

However, the lender is also reducing some buy-to-let and limited company buy-to-let rates, highlighting a mixed pricing approach as mortgage competition continues to shift.