This week’s headlines: FCA issues warning to networks over AR oversight and NatWest cuts rates by up to 37bps.
Check out these and other industry updates below:
The FCA is issuing a warning to networks for overseeing ARs
The Financial Conduct Authority has warned network principals of the dangers of failing to properly supervise appointed representatives, highlighting concerns about ineffective firms and weak monitoring processes that could expose consumers to harm.
The review found that some principals did not have a clear understanding of the duties of their ARs and failed to document or act on issues appropriately, prompting calls for tighter governance, regular reviews and tighter oversight to ensure compliance and protect client outcomes.
NatWest cut rates by up to 37bps
NatWest is cutting loan rates by 37 basis points across all residential and commercial products, including new business, mortgages and existing customer deals, marking a turnaround after recent increases.
The move follows cutbacks from HSBC and others, with data from Moneyfacts showing average fixed rates have started to fall, although market conditions remain uncertain.
Barclays cut mortgage rates by up to 36bps
Barclays will cut the purchase and refinance rates of more than 20 homes by 36 basis points, while other two-year fixed deals with low mortgage rates are among the most competitive in the market.
This reflects a wider trend as lenders, including Market Harborough Building Society, are increasingly reducing rates, returning mortgage rates below 5%.
Lloyds Banking Group, Connell and LMS launch a fully digital home buying service
Lloyds Banking Group, Connells Group and LMS have teamed up to launch a fully digital real estate service aimed at speeding up property transactions in England and Wales.
The platform uses data shared through the LMS network to streamline processes, reduce delays and improve transparency, with support from firms including Moverly and Armalytix.
The program is designed to cut paperwork, make retailers “digital ready” early and reduce the risk of cross-selling.
Richard Goppy rejoins the PMS Mortgage Club
PMS Mortgage Club has also appointed Richard Goppy as director of acquisitions and key accounts, where he will focus on attracting new firms and strengthening relationships with existing members.
Bringing more than 40 years of experience and returning after ten years in senior roles, his appointment underscores the company’s commitment to supporting sustainable growth and strong relationships across its network.
Dealers involved in lenders are not keeping up with the changing needs of borrowers
Research from Nottingham Building Society shows that 83% of mortgage lenders believe that lenders are failing to keep up with the changing needs of borrowers, highlighting growing concerns that traditional pricing models do not reflect modern performance patterns.
As the Financial Conduct Authority reviews mortgage rules, brokers are warning that groups such as the self-employed and those on irregular or high incomes are being disadvantaged, and are calling for more flexible terms and affordability changes to better support a wider range of borrowers.
The FCA shows good intentions in tackling distribution silos that prevent access to late life lending: Key
The Key Equity Release welcomed Financial Conducts’ latest mortgage market research but urged the industry to break down distribution barriers and improve awareness of lending options for the over 55s.
It argues that better access to advice and more comprehensive consideration of products such as whole life assets and RIO could significantly improve customer outcomes, with a large untapped market remaining among older borrowers still using conventional credit.
The Atom Bank Near Prime Index highlights the cost of living stress
Atom Bank’s Near Prime Index shows rising cost-of-living pressures are increasing the demand for Near Prime loans, with many first-time buyers entering this segment and consumers highlighting the lack of high-end mortgage options as a key barrier.
While defaults are still the main reason for Near Prime, borrower demand and competition are improving, reducing price premiums, and demand is expected to continue to grow despite continued market uncertainty.
Asking prices down 0.9% year-on-year: Rightmove
Rightmove reports that average asking prices fell 0.9% year-on-year to £373,971 in April but rose slightly month-on-month, with the market showing resilience despite high mortgage rates and global uncertainty.
Consumer demand and agreed sales remain below last year’s levels, although rising wages and borrowing power are supporting affordability, while luxury homes and regions such as Scotland are driving price growth.
Overall, activity is still stagnant, but high mortgage rates are expected to continue and continue to shape consumer behavior.
Remortgage applications up 46% in Q1: Stonebridge
Stonebridge reports that mortgage applications increased by 46% in the first quarter, driving loan activity up by 25% despite a slowdown in home purchases and first-time buyer demand.
The rise is linked to a large number of fixed-rate agreements expiring, with UK Finance noting that 1.8 million will expire by 2026, while two-year fixes have grown in popularity and repayments are expected to remain strong as borrowers seek new deals.
