This week’s headlines: Construction Corporation Nationwide is set to cut 600 jobs and the Halifax brand disappears after 173 years.
Check out these and other industry updates below:
Nationwide ‘600 job cuts’
Nationwide Building Society is reportedly in talks to cut up to 600 jobs following its £2.9bn takeover of Virgin Money, as the merger creates duplication in other roles.
The building society said it is working with workers and unions during negotiations and remains committed to retaining staff where possible, while continuing to expand its banking operations.
The Halifax brand will disappear after 173 years
Lloyds Banking Group has confirmed it will retire the historic Halifax brand after 173 years, with existing customers gradually being moved to Lloyds-branded accounts and branches, and new products will no longer be offered under the Halifax name.
Halifax Intermediaries will become a Lloyds intermediary in 2027, marking the end of one of the UK’s best-known banking and mortgage brands following its merger with Lloyds Banking Group after the 2009 financial crisis.
Burnham promises the council’s biggest housing push since the post-war period
Andy Burnham has promised the biggest council housing program since the post-war era as part of his bid to become Prime Minister, saying the UK’s housing crisis is hurting families and public finances.
Speaking in Manchester, he also promised a major transfer of funds through the proposed “No10 of the North”, while insisting that his plans would be delivered within existing funding rules and supported by sensible public funding.
Barclays, NatWest, Santander and TSB lead the way
A new wave of mortgage rate cuts has hit the market, with Barclays, NatWest, Santander and TSB all cutting rates this week as competition between lenders intensifies.
NatWest is cutting selected rates by up to 31bps, Santander by up to 21bps, TSB by up to 20bps and Barclays by up to 13bps, while specialist lenders including Molo Finance and Kensington have also announced cuts, offering borrowers improved deals on all residential and buy-to-let products.
Total loans fell 34% to lowest level in a year: BoE
Total mortgage lending fell by a whopping 34% from £4.4bn in April to £2.9bn in May, according to the Bank of England, marking the lowest monthly figure in a year.
Home purchase approvals fell 15% and mortgage approvals fell 34%, with industry experts citing lower liquidity, lower mortgage rates at the start of the year and increased caution among borrowers despite strong underlying housing demand.
A legal claim worth £4.5m has been launched against UK housebuilders
A joint legal action has been filed at the Competition Appeal Tribunal on behalf of more than 700,000 people who bought new homes built in Great Britain between 2015 and 2026, alleging that major housebuilders shared sensitive pricing information and kept prices illegally high. The claim, which seeks compensation of between £2.2bn and £4.5bn, is aimed at firms including Barratt Redrow, Bellway and Taylor Wimpey, although the allegations are yet to be tested in court.
High rate of cuts for high street lenders “clear sign” competition is gathering pace: MAB
A wave of mortgage rate cuts from major lenders, including Barclays, NatWest, Santander and TSB, reflects increasing competition in the UK mortgage market, according to Rachel Geddes of the Mortgage Advice Bureau.
He said the reduction would ease affordability pressures on first-time buyers and provide more choice for mortgage and home delivery customers, although it is unlikely to change the overall affordability picture.
The government is considering creating its own real estate developer, reports say
The government is reportedly considering creating a state-owned housing developer to help increase housing supply, with the company able to borrow at lower rates than private builders.
The proposal, linked to Steve Reed and possibly in line with Andy Burnham’s housing ambitions, comes as forecasts from Savills suggest the UK is likely to deliver around 300,000 homes a year over the next five years.
Rising construction costs, weak pipelines and insolvency pressures are all weighing on supply, with completions expected to slow ahead of any recovery.
Buy and sell money in Q2 but rejects forecast: BoE
UK mortgage lenders saw an increase in house prices, mortgages and buy-to-let demand in Q2, according to the Bank of England’s Credit Conditions Survey, but expect a sharp reversal in Q3.
Mortgage and primary lending balances are expected to fall into negative territory, while buy-to-let demand is also expected to weaken significantly.
Lenders also reported strong conditions for subprime mortgages, and stable default rates.
Three equity issuance firms merged to form Sovereign Life
The Age Partnership, Pure Retirement and Advise Wise have been brought together under the new Sovereign Life Group, which will handle all late life lending while each brand retains its own identity and management teams.
The group aims to combine lending, advice and technology to improve customer outcomes and strengthen resilience in the sector, according to CEO Jonathan Thirkill.
Founder Andrew Thirkill said the move builds on efforts to improve awareness and access to late life finance, including equity relief, while maintaining a focus on quality advice and consumer protection.
