This week’s top headlines: The average property price continues to decline in July, and Finova appoints Richardson as chief executive officer.

Explore these and other major industry updates below:

Lloyds and Nationwide cement top spots as largest resi and BTL lenders

Lloyds Banking Group maintained its lead as the UK’s largest mortgage lender, increasing its gross lending by 28% to £47bn and raising its market share to 19.4% in 2024.

Nationwide rose to second place with a 70% surge in lending, following its acquisition of Virgin Money, while NatWest slipped to third after a 10% decline.

Regulators have eased mortgage rules to support government growth plans, allowing more high loan-to-value lending, which could significantly boost first-time buyer activity.

In the buy-to-let market, Nationwide retained the top spot, with Lloyds moving to second and NatWest sharing third with Onesavings Bank, both seeing declines.

Finova appoints Richardson as chief exec

Finova has appointed Gareth Richardson as its new CEO, bringing with him extensive experience in banking and technology from his previous role at Thought Machine.

His arrival follows a series of senior leadership changes and comes as Finova completes its transition to a fully SaaS-based product suite, secures backing from Bain Capital and Octagon Capital, and merges with MSO. The firm also recently partnered with Aldermore to support mortgage services via its cloud-native platform.

Richardson said he’s excited to lead Finova through a pivotal time marked by AI advances and evolving customer expectations.

Looser LTI limits without higher homes supply risks house prices: BoE Bailey

Bank of England Governor Andrew Bailey has warned that raising mortgage loan-to-income limits without increasing housing supply could drive up house prices further. Appearing before the Treasury Committee, Bailey stressed that limited housing supply, not mortgage access, is the main constraint on homeownership.

The recent easing of high LTI lending caps by the Financial Policy Committee aims to support first-time buyers, but regulators caution it won’t resolve affordability issues unless housing stock and incomes grow. The government’s target to build 1.5 million homes over five years is seen as crucial, as house prices remain high relative to income, with FTBs needing large deposits and borrowing levels.

Goldman Sachs downgrades 2025 rate cut forecast

Goldman Sachs has revised its Bank of England rate cut forecast, now expecting five reductions in 2025 instead of six, citing a surprise rise in inflation to 3.6% and persistent wage growth.

While still predicting a cut in August to 4%, the bank no longer expects a September reduction and now sees the base rate reaching 3% by March 2026, one month later than previously forecast.

Despite higher-than-expected wage growth, Goldman highlights rising unemployment and falling job vacancies as signs of labour market slack, suggesting the Bank may accelerate cuts later in the year to support a slowing economy.

Average property price continues to decline in July: Rightmove

The average asking price for UK homes dropped by 1.2% in July to £373,709, with London seeing the steepest declines, particularly inner London at 2.1%, according to Rightmove.

Despite the dip, buyer demand remains strong, with sales agreed up 5% and buyer enquiries 6% higher than last year. Improved affordability, driven by lower mortgage rates and rising wages, is supporting activity.

However, high supply is limiting price growth, prompting Rightmove to lower its 2025 price forecast from 4% to 2%. Experts say it remains a buyer’s market, with falling prices offering opportunities amid cautious optimism about future rate cuts.

Banker Libor rate-rigging conviction quashed by Supreme Court

Tom Hayes, the former UBS and Citigroup trader jailed for rigging Libor rates, has had his conviction overturned by the UK Supreme Court, which ruled his 2015 trial was unfair due to incorrect jury directions.

Hayes served over five years of a reduced 11-year sentence and was one of 19 bankers convicted across UK and US trials following the global financial crisis. The Court found that considering commercial interests in Libor submissions was not inherently dishonest, aligning UK law with a 2022 US ruling.

Former Barclays trader Carlo Palombo also had his conviction quashed, and further reviews of similar cases may now follow.

Landlord ‘sell-off ends’ as loans jump 47% to £10.5bn in Q1: UK Finance

Buy-to-let (BTL) lending surged in the first quarter of the year, with 58,347 new loans worth £10.5bn—up 38.6% by volume and 46.8% by value year-on-year—marking a possible end to the “big landlord sell-off,” according to UK Finance.

Improved yields, lower interest rates, and rising rents are encouraging landlords back into the market, as BTL mortgage rates become more competitive, in some cases even cheaper than residential deals.

While arrears have fallen, possessions have risen slightly, and experts say landlord demand will likely continue growing as rates fall and rental demand remains strong.

FCA guidance opens door to more execution-only home loans

The Financial Conduct Authority (FCA) has confirmed rule changes allowing borrowers to remortgage without mandatory broker advice, aiming to boost choice, cut costs, and support homeownership.

This move enables greater use of execution-only mortgage options and could save consumers up to £21.4m annually, though brokers may lose up to £100m in fees. While lenders welcomed the flexibility, brokers raised concerns that borrowers—particularly vulnerable ones—may miss out on tailored advice.

The FCA insists many will still seek advice, and lenders must ensure execution-only routes don’t cause consumer harm. A broader mortgage rule review is expected this autumn.

Broker confidence rises on rule changes and less turbulent economy: HSBC

Nearly 80% of mortgage brokers have reported increased lending activity, according to HSBC’s latest Mortgage Broker Barometer, driven by regulatory easing and more stable market conditions.

Major lenders have relaxed affordability rules, enabling borrowers to access up to £39,000 in additional funds—particularly benefiting first-time buyers. Broker confidence in the economy has also surged, with 78% rating their outlook positively, up from 62% in April.

Most anticipate base rate cuts by year-end, further fuelling optimism, especially in the residential mortgage market. However, expectations for growth in the buy-to-let sector remain more cautious.

The Mortgage Store appoints Garner as CEO

Mat Garner has been appointed as the new chief executive of The Mortgage Store, a broker firm with over 20 years of history. He will spearhead the company’s UK expansion with a strong focus on enhancing technology to improve the customer experience.

Garner highlighted the shared vision with the company’s owners around building a high-performance culture centered on excellent customer service.

Based in St Albans, The Mortgage Store provides a broad spectrum of mortgage products, including residential, buy-to-let, bridging loans, and equity release, as well as specialist mortgages tailored for teachers, NHS staff, police, and military personnel.