This week’s top headlines: NatWest partners with Landbay to offer limited company buy-to-let deals, and court ruling closes stamp duty loophole.

Explore these and other major industry updates below:

NatWest partners with Landbay to offer limited company buy-to-let deals

NatWest has partnered with specialist lender Landbay to enter the limited company buy-to-let market, using Landbay’s platform and broker network to offer mortgage products under the Landbay brand.

This move supports NatWest’s strategy to simplify home buying and expand its reach among professional landlords, while Landbay sees the partnership as a way to broaden its offering and reinforce its reputation in the buy-to-let sector.

Court ruling closes bogus stamp duty loophole

The Court of Appeal has ruled that homes needing repair are still liable for residential stamp duty rates, rejecting claims that such properties are exempt due to being uninhabitable.

HMRC warns buyers against agents promoting schemes to avoid stamp duty, stating that if a property retains the essential features of a dwelling, it is still subject to the tax.

The ruling emphasises caution over bogus repayment claims, as inaccurate submissions could lead to greater financial loss.

Marathon mortgage overpayments key to FTB affordability: Moneyfacts

First-time buyers struggling with affordability are increasingly turning to long-term mortgages of up to 40 years to reduce monthly payments, according to Moneyfacts, which notes potential savings of £255 per month on a £250,000 loan.

While borrowers can overpay to shorten the term and cut interest costs, critics warn that longer terms mean more interest overall and could push repayments into retirement.

Data shows a rise in under-forties taking out such “marathon” mortgages, raising concerns they may dip into pensions later to clear debts, potentially impacting their financial security in old age.

Brokers split on whether AI will help them or replace them

Brokers are sharply divided on the impact of AI, with HSBC’s latest Broker Barometer revealing that while 70% are adopting or planning to adopt the technology, many remain wary.

HSBC’s Chris Pearson highlights AI’s benefits in speeding up admin tasks like document checks and marketing, arguing it enables brokers to focus on client relationships.

However, a separate survey found over half of brokers fear AI could reduce the need for human workers, and most are hesitant to let AI influence advice or lending decisions. Despite the divide, Pearson insists AI is now essential for staying competitive.

IMF backs Bank of England ‘gradual’ interest rate cut stance

The IMF has urged the Bank of England to continue easing monetary policy gradually while remaining flexible amid ongoing global uncertainties, particularly around trade and inflation.

Despite a recent rise in UK inflation to 3.6%, the IMF expects this to be temporary, forecasting a decline to 2.3% by 2026. It praised the government’s growth-focused reforms and predicted modest economic expansion, but warned that financial tightening and global instability could hinder recovery.

Chancellor Rachel Reeves welcomed the IMF’s endorsement, though critics argue her spending plans risk future tax hikes or cuts to key services like pensions and the NHS.

Coleman named as interim FoS chair after initial recruitment ‘unsuccessful’

Liam Coleman has been appointed interim chair of the Financial Ombudsman Service (FOS), taking over from Baroness Zahida Manzoor amid significant reforms aimed at reducing its powers and speeding up claims handling. A former CEO of The Co-operative Bank, Coleman brings extensive financial experience and will serve until a permanent replacement is found.

The FOS is under pressure to align more closely with the FCA and government growth priorities, following criticism over its regulatory reach and delays. Recent changes include lowering interest on awards and reviewing fee structures to encourage faster dispute resolution.

Nationwide cuts prices with lowest rate now at 3.74%

Nationwide has announced rate cuts of up to 0.21 percentage points across its two-, three-, and five-year fixed mortgage products, with rates now starting at 3.74%. The reductions apply to new and existing home movers, first-time buyers, and remortgagers, with notable drops at higher loan-to-value (LTV) tiers.

Nationwide’s Carlo Pileggi says the changes aim to support all market segments and bring more deals below 4%, boosting appeal amid competitive conditions.

Santander also cut selected fixed rates today, with home mover deals starting from 3.73% at 60% to 75% LTV.

Market encouraged by BoE mortgage approval data

Mortgage approvals for house purchases rose to 64,200 in June, up by 900 from May, while remortgage approvals reached 41,800 — the highest since October 2022, according to Bank of England data.

Net mortgage borrowing also climbed sharply to £5.3bn. Analysts cite growing borrower confidence, fuelled by lower mortgage rates and increased competition among lenders.

While affordability has improved slightly, overall housing activity remains below pre-pandemic levels due to ongoing cost pressures and tax burdens. However, expectations of a base rate cut and recent reforms may further support first-time buyers and sustain momentum in the housing market.

Leeds BS lowers minimum income requirements to help FTBs

Leeds Building Society has lowered its minimum income requirement for mortgage applicants from £40,000 to £30,000, following Bank of England approval to exceed the usual 15% cap on high loan-to-income lending. This change applies across all lending, including 5% deposit and Income Plus mortgages.

For example, a borrower earning £30,000 may now access up to £165,000—£30,300 more than previously possible—allowing the purchase of a £173,000 home with a 95% LTV mortgage.

The society has also reduced its stress rate to boost affordability, aiming to make homeownership more accessible to those on lower incomes.

Skipton BS offers sub-4% loans, cuts Track Record to lowest rate

Skipton Building Society is reducing its 100% Track Record mortgage rates to their lowest since launch, cutting the five-year fixed rate to 5.09%, and introducing sub-4% home loans, including two-year fixes at 3.95% for purchases and 3.99% for remortgages at 60% LTV.

These moves follow regulatory easing to allow more lending over 4.5 times income, aimed at boosting first-time buyer mortgages, with further FCA reforms expected this autumn.

The Track Record mortgage helps renters with strong rental histories buy homes without a deposit.