FCA defends finfluencer prosecutions record

The Financial Conduct Authority (FCA) has intensified efforts to combat finfluencers and financial crime, particularly to protect vulnerable, lower-income consumers from misleading online advice.

FCA chief Nikhil Rathi highlighted the growing influence of social media in financial decision-making, with 36% of adults using it for advice, and noted that while thousands of harmful promotions have been removed, court delays and limited resources hinder prosecutions.

The FCA is working with international regulators and big tech firms, though cooperation is inconsistent and the burden of monitoring often falls on the FCA. Rathi also stressed the importance of financial education and the potential role of building societies and mutuals in improving public understanding of financial risks.

Mortgage lending and possessions surge in Q1: BoE

UK mortgage lending surged by 50.4% in early 2025 to £77.6bn—the highest in over two years—driven partly by stamp duty changes, but Bank of England data reveals a mixed picture.

While lending and high loan-to-value borrowing rose, signaling greater market confidence and risk appetite, remortgaging declined and possessions climbed to their highest level since 2019.

Although arrears fell slightly, overall affordability remains a concern. Analysts note the market’s recovery is encouraging yet fragile, with borrowers and lenders treading cautiously amid economic uncertainty and fluctuating interest rates.

FCA chiefs accept risk factor but no ‘chill effect’ on mortgage innovation

Chancellor Rachel Reeves’ push to ease business regulations and relax lending rules raises concerns over consumer risk, but the FCA insists innovation is thriving.

At a select committee hearing, FCA chair Ashley Alder and CEO Nikhil Rathi acknowledged challenges in balancing accessible advice with affordability, noting most consumers still lack adequate guidance. While government-led growth efforts prompt scrutiny over potential harm, the FCA maintains it is focused on simplifying—not expanding—rules.

Rathi dismissed claims that regulations like Consumer Duty hinder innovation, highlighting a rise in high LTV mortgages as proof that lenders remain active and adaptable.

Mutuals attend No 10 reception amid push for higher LTI limits

Building society leaders, including Skipton’s Stuart Haire and the BSA’s Robin Fieth, attended a Downing Street reception as mutuals continue lobbying for higher loan-to-income (LTI) limits.

Currently, only 15% of new residential mortgages can exceed 4.5 times a borrower’s salary, but mutuals such as Nationwide, Skipton, and Yorkshire argue this cap restricts lending to aspiring homeowners. They’ve urged the Treasury Committee to raise the cap to 20%, potentially enabling thousands more to buy homes.

While the FCA is launching a broad consultation on mortgage reform, both the FCA and Bank of England have warned that relaxing LTI rules could risk fuelling repossessions and house price inflation.

PM says £39bn housing investment transformational for homeowners

Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves have announced a landmark £39bn investment over 10 years to boost social and affordable housing, positioning it as the largest such commitment in a generation.

Aimed at delivering 1.5 million homes by 2030, the funding nearly doubles previous annual spending levels and includes £15bn for infrastructure and £1.2bn annually for skills training.

Industry figures welcomed the move, citing potential for increased supply and economic stability, but warned that local planning resources remain under strain. Critics cautioned that without support for local authorities, delays could still hamper delivery despite the ambitious financial commitment.

Yorkshire ‘most efficient’ building society: Target Group

Yorkshire Building Society has been ranked the UK’s most efficient mutual by software provider Target Group, based on assets per employee.

The analysis, drawn from annual reports covering societies with nearly £550bn in assets and over 30,000 staff, found Yorkshire achieved £28.3m in assets per employee—well above the Tier 1 average of £20m.

While larger societies are expected to benefit from economies of scale, Target highlighted wide disparities and suggested that digital transformation is a key factor. Some smaller societies outperformed larger rivals, underscoring the importance of tech investment to boost productivity and ensure the sector’s long-term competitiveness.

Lenders cut 2 and 5-year rates by smaller margins: Moneyfacts

Mortgage rates continued to fall in June but at a slower pace, with average two- and five-year fixed rates edging down to 5.12% and 5.09% respectively, according to Moneyfacts.

The number of available mortgage products dipped slightly to 6,843, while average shelf-life fell to just 17 days, reflecting rapid market turnover.

Tracker rates also dropped below 5% for the first time since early 2023, and stress test changes may help more first-time buyers qualify. Despite modest rate cuts, competition remains strong, particularly at higher loan-to-value tiers.

Standard Life Home Finance exits lifetime market in more2life transfer

Standard Life Home Finance will exit the lifetime mortgage market from 6 July, with its Horizon equity release products set to be integrated into more2life’s offering from 7 July.

The Horizon range—including fee-free, fee-paid, and Interest Reward plans—will remain available under more2life as a distinct product line.

The move simplifies the group’s structure while retaining product variety. More2life says the shift enhances efficiency and adviser clarity amid a market where annual lifetime lending fell 11.6% to £2.3bn in 2024. Existing Standard Life customers will continue to be supported as usual.

Govt will fall more than 40% short of 1.5 million homes target: Savills

Savills forecasts the UK will build around 840,000 homes over the next five years—42% short of the government’s 1.5 million target. The shortfall is due to falling planning consents, weak demand for new homes, and a shortage of skilled builders.

While recent planning reforms and government investment in training could boost output to 1.2 million homes at full capacity, the pipeline remains constrained. New home completions fell 6.5% in the year to March 2024, and a continued decline in planning consents suggests this downward trend may persist for another two years.

Harrison rejoins Together as regional account manager

Together has appointed Sadie Harrison as a new regional account manager in its intermediary sales team. With 25 years of industry experience, Harrison rejoined Together after five years away. She will support network and club partners across specialist lending in both regulated and unregulated finance.

Harrison emphasized her passion for educating firms on market changes, including upcoming rental reforms and EPC regulations, aiming to help them understand Together’s role and client solutions. Her career includes roles at Cheltenham & Gloucester, running her own brokerage, Northern Rock, Lloyds Banking Group, and TSB.