This week’s headlines: FCA sets out plan to expand mortgage access and Hodge review process for larger loan sizes.
Check out these and other industry updates below:
Stamp duty should be reformed to help FTBs, say MPs
A cross-party parliamentary committee has called on the government to review and reform the stamp duty as part of wider efforts to improve housing affordability for first-time buyers.
The committee recommended a consultation by the end of 2026 to look at alternatives to the levy, alongside council tax reform, while also calling for action to bring long-term empty homes back into use.
MPs said changes to stamp duty, first-time buyer savings products and housing provision could help more people get on the property ladder, but stressed that increasing housing availability was still important to improving affordability.
CHL Mortgages, HSBC, Foundation and YBS Commercial made rate changes
CHL Mortgages has introduced limited-edition buy-to-let products starting at 2.70% and reduced rates across its short-term range by 30 basis points, with rates now starting at 3.16%.
Meanwhile, HSBC will introduce mortgage rate cuts, the Foundation will withdraw most of its buy-to-let pre-letting for new products, and YBS Commercial has reduced selected five-year fixed rates by 0.15%, including deals for buy-to-let investors, HMOs, MUFBs and short-selling properties.
Hodge revises criteria for larger loan sizes
Hodge Bank has expanded its range of residential and retirement housing by increasing loan size limits at higher loan-to-value levels and loosening other affordability criteria.
The lender increased its 95% LTV loan from £600,000 to £750,000, doubled the 90% LTV limit to £2 million, and increased the 85% LTV limit to £2.5 million.
It will now accept 100% of bonus income and ignore voluntary pension contributions in the affordability test, helping many borrowers to get big loans.
New mortgage deals up 12% in Q1: BoE
Bank of England data shows that new mortgage commitments rose by 12% to £78bn in the first quarter of 2026, indicating strong future lending activity, although the number of loans actually fell by more than 12% to just under £70bn.
Mortgage lending continued to grow as borrowers exited fixed-rate agreements, while the share of home equity loans declined and purchase loans rose slightly.
Industry analysts said the figures suggested confidence was improving ahead of recent market volatility, with low levels of debt highlighting borrower resilience despite continued pressure on affordability.
The FCA sets out a plan to increase access to mortgages
The FCA has proposed changes to housing laws aimed at making it easier for first-time buyers, older borrowers and self-employed applicants to access loans.
The plans will give lenders more flexibility when assessing affordability, allow greater consideration of variable income and less past credit problems, and support broader use of retirement benefit and interest-only loans where appropriate.
The regulator says the changes are designed to reflect modern working patterns and demographics while maintaining strong consumer protection, with consultation responses invited until 28 July 2026.
High mortgage rates hurt housing market: Bellway
Bellway warned that mortgage rates and rising construction costs are weighing on the housing market, as homebuyer demand weakens in April and May after a strong start to spring.
Private bookings fell 6.2% year-on-year, and the company also reported reduced land purchases and continued pressure from higher borrowing and material costs.
Despite the recession, Bellway maintained its full-year guidance, but said the outlook remains uncertain amid ongoing economic and global pressures.
NatWest is cutting rates by up to 15bps today
NatWest has reduced mortgage rates by up to 15 basis points across all residential and buy-to-order products, with the biggest reductions focused on home owner deals.
The lender is also discounting select residential products with high mortgage rates, including 95% and 90% LTV adjustments, as part of a wider round of price reductions alongside Halifax and BM Solutions.
A number of other deals were also cut, continuing a broader trend of improving mortgage rates across the market.
Virgin Money and nationwide prices
Virgin Money has reduced product transfer and buy-to-let product transfer rates by up to 0.15%, while nationally it has reduced switching rates by up to 0.12%, with its new lowest deal now from 4.56%.
The moves add to a wider wave of loan price cuts across the market, with HSBC, Foundation and YBS Commercial also adjusting ranges or relaunching products.
Rates on both residential and home equity loans continue to decline, although they remain well above recent lows.
LSL appoints Robert Sinclair as a non-executive director
LSL Financial Services has appointed former Association of Mortgage Intermediaries chief executive Robert Sinclair as a non-executive director.
He will support the board across its LSL FS businesses, including Primis, TMA and Linear, with a focus on strategy, governance and stakeholder engagement.
The group said his experience in the communications and communications sectors will help support its long-term growth and advisory relationships.
Rent in cheap places rising twice as fast as the UK average: Zoopla
Zoopla data shows that rental inflation in the UK has fallen to 2.1%, but cheap accommodation (around £750 a month or less) is increasing by 5% annually due to limited availability, while more expensive cities are seeing little or no growth.
Overall demand for rented accommodation has fallen to a six-year low, although London remains the exception with growing demand, and analysts say persistent supply shortages continue to keep upward pressure on rents despite improving wage growth.
