This week’s headlines: Barclays cuts rates by up to 66bps amid lender cuts and families could face £120,000 CGT liability on inherited homes
Check out these and other industry updates below:
Barclays is cutting rates by up to 66bps amid other cuts to lenders
Barclays is cutting mortgage rates by 66 basis points from tomorrow, with a sharp drop in buy-to-let deals, while Foundation and Accord are cutting buy-to-let rates as competition from lenders intensifies.
The biggest cut for Barclays is the two-year fixed at 90% LTV, reduced from 5.45% to 4.79%, while Foundation cut selected buy-to-let products by up to 25bps and Accord reduced all five-year fixed-rate mortgages up to 75% LTV by 8bps.
Lloyds is launching loyalty deals with a 20bps discount for Premier customers
Lloyds has launched a new Loyalty Premier mortgage range offering current account customers a 20bps discount on equivalent rates in Halifax, while also reducing rates across Halifax and BM Solutions by up to 15bps.
The changes come amid a wider wave of rate cuts by lenders, with rates falling below 4% fueling fierce competition and prompting mortgage experts to suggest that rates may be cut if financing costs remain low.
Families could face a £120,000 CGT liability on inherited homes
The Rathbones have warned that scrapping Capital Gains Tax (CGT) on death could leave families facing tax bills of up to £119,280 when they sell an estate, as speculation mounts about potential tax changes under Andy Burnham’s future government.
The firm also warned that aligning CGT rates with income tax could significantly increase debt for high earners, while stressing that investors should continue to prioritize long-term financial planning rather than making decisions based solely on potential tax changes.
Consumers are wary of interest-only FTBs despite the FCA’s stance
New research from Gen H suggests advisers should remain cautious about recommending interest-only mortgages to first-time buyers, with almost half of the UK’s top buyers writing nothing by 2025 despite the FCA’s consultation on expanding access.
While Gen H says its half-and-half interest-only product has seen strong uptake by helping overcome affordability barriers, industry figures argue that persistent stigma continues to limit wider adoption, even under today’s strict regulatory framework.
FCA calls for free AI-powered cash service
A review commissioned by the FCA has called for the creation of a free, AI-powered public benefit money service to improve financial empowerment and help tackle the advice gap, while warning that AI also creates increased risks of fraud, scams and consumer harm.
The report recommends that the FCA work with government and industry to develop a trusted AI service, warning that without it, consumers may rely more on unregulated tools for financial guidance, potentially widening inequality and exposing users to negative consequences.
Bank rate hike ‘very likely’ after renewed war in Middle East: John Charcol
Escalating tensions in the Middle East could increase the likelihood of a Bank of England rate hike at its July or September meeting, according to John Charcol’s Nicholas Mendes, as higher oil prices pose a threat to monetary policy.
He warns that renewed inflationary pressure could reverse recent mortgage rate cuts by raising exchange rates and raising lenders’ funding costs, potentially making it harder for borrowers to find cheap fixed-rate deals.
Across the country, Virgin and GB Bank are reducing prices
Nationwide it’s reducing mortgage rates on all established and selected trackers, with discounts of up to 0.19% on mortgage, first-time buyer and existing customer products.
Virgin Money and GB Bank also announced rate cuts across residential and commercial deals, continuing a wider trend of lenders cutting rates as competition in the mortgage market intensifies.
A growing number of homeowners are working full-time: Pegasus
The private rental sector is becoming increasingly professional, with the average number of landlords increasing to 7.3 properties and more landlords working as full-time businesses, according to Pegasus Insight.
Large portfolio owners are also driving demand for loans, with many planning to refinance and seeking specialist lending solutions as limited company ownership and complex borrowing needs increase.
Stamp duty reform could open up 300,000 homes within a year: Jackson-Stops
Abolishing stamp duty could open up more than 300,000 owner-occupied homes in England within a year and more than 750,000 within three years, according to Jackson-Stop, as upfront costs continue to discourage people from moving.
The report also highlights that reducing uncertainty around the purchasing process may release some housing supply, with transaction delays, mortgage rates and economic concerns all contributing to lower mobility.
Coventry to increase prices on resi deals and reduce others
Coventry Building Society is increasing rates on fixed-rate home loans this week, including several two-, three- and five-year deals for new and existing borrowers.
However, the lender is lowering some buy-to-let rates and a limited company to buy, highlighting a mixed pricing approach as mortgage competition continues to change.
