Mortgage Strategy Top 10 Stories This Week:
This week’s top stories feature Revolut’s foray into the mortgage market and rate cuts announced by Barclays and HSBC. Explore these developments and more below:
Revolut targets mortgages as part of ‘product roadmap’
Revolut has identified mortgages as a “core banking feature” in its product roadmap, as it swung to a £438 million profit in 2023, following a £25 million loss the previous year. The UK-based digital bank, which now serves 45 million customers in 38 countries, attributed the profit boost to higher interest rates and the addition of 12 million retail customers, with revenues surging 95% to £1.8 billion.
Barclays and HSBC latest lenders to announce rate cuts
Barclays and HSBC have announced rate reductions effective from July 5th. Barclays, for instance, is lowering rates on its residential products, including the EMC reward 75% loan-to-value two-year fix, dropping from 4.90% to 4.75%. This product includes a £999 fee, requires a minimum loan of £5,000, and supports loans up to £2 million.
Private Label relaunches with ‘affluent professional borrowers’ range
Private Label, owned by the Brightstar Group, has introduced a new suite of home loans targeted at affluent professional borrowers. Known as the Rockstar Range, these loans offer interest-only options up to 90% loan-to-value, extending into retirement. They also adopt a flexible approach towards self-employment and complex income situations. Private Label is willing to consider individuals with less than 12 months’ trading history and other common scenarios typical among affluent professionals.
Halifax cuts resi rates by up to 19bps, TMW by as much as 30bps
Halifax announced it would cut selected residential rates by up to 19 basis points, while The Mortgage Works reduced landlord deals by up to 30bps, effective from 3 July. Halifax said it would ease rates on selected homemover and first-time buyer products by up to 19bps. Meanwhile, Nationwide’s buy-to-let arm, The Mortgage Works, stated that reductions on selected landlord products would see offers start from 3.69%.
Fintel completes purchase of broker support firm threesixty for £14.6m
Fintel, owner of SimplyBiz, has finalised the acquisition of threesixty, a broker support services firm, from abrdn for £14.6m in cash. Threesixty serves over 900 independent financial advisers and fund management firms, along with 10,000 advisers, providing regulatory and business services. These include advice for firms pursuing direct authorisation, continuous professional development training, and guidance on Consumer Duty. Last year, threesixty reported “external revenues” amounting to £6.5m.
Habito launches protection unit
Habito has launched a protection unit and expanded its insurance operations in-house. Rhys Walker, previously from Better.co.uk, joins as protection advice manager, alongside protection experts Kulwinder Chana and Niladri Chakraborty. Additionally, Olivia Harris, a mortgage expert from Mojo Mortgages, has been hired, while Hannah Thornely and Matt Kingsbury have joined the engineering department. These new hires mark a strategic move to strengthen Habito’s team across various domains.
Santander promotes Sellar to head of intermediary channel
Santander has appointed Graham Sellar as the new head of its intermediary channel, effective Monday (8 July). This expands Sellar’s current role as head of mortgage business development to include leadership of all field-based and telephone-based intermediary teams. In addition to overseeing key account management since 2020, Sellar will now manage broker teams reporting directly to him within the high street bank.
Vida-owner Belmont Green lending falls more than threefold to £190m
According to its annual report, Belmont Green, the owner of Vida, reported a significant drop in gross lending to £190 million last year, down from £683 million in 2022. Belmont Green’s chief executive, Anth Mooney, highlighted a deliberate strategy of prioritizing sustainable returns over volume amidst a competitive market. He stated that the company maintained a clear focus on writing new mortgage business strategically in 2023.
Average five-year fix falls below 5% for first time since May: Rightmove
This week, the average five-year fixed mortgage rate has dipped below 5% for the first time since early May, according to Rightmove’s weekly mortgage tracker. Specifically, the average five-year fixed mortgage rate is now 4.99%, down from 5.68% a year ago. Additionally, the average two-year fixed mortgage rate has decreased to 5.37% from 6.17% compared to the same period last year.
House price growth stable but affordability pressures remain: Nationwide
UK house prices rose by 0.2% in June, adjusted for seasonal effects, according to Nationwide’s latest House Price Index. This uptick pushed the annual growth rate from 1.3% in May to 1.5% in June, though prices remain approximately 3% below the peak observed in summer 2022. The average UK house price, not adjusted for seasonal variations, now stands at £266,604. Nationwide’s chief economist Robert Gardner noted that housing market activity has been relatively stable over the past year, with total transactions down by about 15% compared to 2019 levels.
