This week’s headlines: Lloyds Banking Group backs real estate development team and Paradigm calls for mandatory regulated advice for all FTBs.
Check out these and other industry updates below:
Lloyds Banking Group supports the real estate development team
Lloyds Banking Group has strengthened its housing development team with a new building and two senior positions aimed at supporting affordable housing and new home ownership.
Gina Burrows has taken up the newly created role of affordable housing partnership manager, while Gemma Clark has joined as national housing development manager to support housebuilders, brokers and regional housing schemes.
These changes reflect Lloyds’ focus on improving access to housing and strengthening partnerships across the affordable housing and new build sectors.
Construction shrinks at fastest pace in six years in May: S&P
UK building construction contracted in May at its fastest pace in six years, marking the 17th consecutive month of decline, while housebuilding remains particularly weak.
Rising borrowing costs, inflationary pressures, higher commodity costs and economic uncertainty related to the Middle East conflict have all weighed on activity.
Industry figures warn that, despite improved funding conditions, significant structural change will be needed if the government is to meet its housing ambitions.
Paradigm requires mandatory regulated advice for all FTBs
Paradigm Mortgage Services has called for mandatory mortgage advice for all first-time buyers, arguing that the growth of cash-only loans and recent regulatory changes increases the risk of adverse consumer outcomes.
The company says first-time buyers are at greater risk due to limited experience, affordability pressures and protection gaps, and believes advice should be the least protective when making the biggest financial commitments of their lives.
The proposal has received support from the Association of Mortgage Intermediaries, which says the advice is essential to help first-time buyers navigate the difficulties of home ownership.
Protection myths leave borrowers dangerously exposed
New research from LifeSearch and the HomeOwners Alliance has revealed widespread misunderstandings about income protection, with many policyholders mistakenly believing it will pay out if they become unemployed.
Research has found many homeowners also overestimate the level of support available through statutory sick pay and employer benefits, which can leave them financially vulnerable if illness or injury prevents them from working.
The findings highlight the importance of advice to help homeowners understand what protection they have and where gaps may exist.
Leeds BS appoints Nicholls as BDM
Leeds Building Society has appointed Lee Nicholls as business development manager, supporting consultants across the Midlands.
Nicholls brings over a decade of financial services experience, including time as a real estate agent and business development roles with building societies, and will focus on strengthening client relationships and supporting positive client outcomes.
The appointment reflects Leeds’ continued investment in its central offering and regional retailer support.
HSBC, Leeds, Moda and Molo join this week’s price cuts
A number of lenders including HSBC, Moda Mortgages, Leeds Building Society and Molo have reduced loan rates across all residential and buy to let products, with some specialist deals starting in the mid 3% range.
The moves follow a wider wave of downsizing by major lenders, suggesting increased competition for market rates across the market.
Paragon and LendInvest lower BTL rates
Paragon Bank has lowered its buy-to-let mortgage rate by 20 basis points between two- and five-year fixed deals, with rates now starting at 3.55% for green products with up to 75% of loans.
It also maintains a number of payment options to suit different landlord strategies. LendInvest has also reduced its buy-to-let rates by up to 10bps, with deals now as low as 3.84% on all new businesses, product transfers and bridging loans.
Cambridge & Counties Bank promotes Parr to head of corporate finance
Cambridge & Counties Bank has promoted Stephen Parr as head of finance to strengthen its focus on growing demand for short-term mortgages.
The role will support bridging and bridging solutions of up to £5 million per facility over a 24-month period, helping borrowers transition to long-term finance.
The bank says the move reflects the growing demand for flexible, quick property financing with clear exit strategies.
Scots face ‘unsaleable’ homes and mortgage rejections as a result of divorce
Thousands of homeowners in Scotland are being warned that they may struggle to sell or lend on properties fitted with spray foam insulation, with lenders increasingly treating it as a risk and possibly refusing loans altogether.
Around 250,000 homes in the UK could be affected, with removal costs running into thousands of pounds and many cases linked to past energy saving schemes.
Experts and trade standards advise homeowners to seek independent surveys and beware of unsolicited removal services.
London tenants who pay five months’ salary in rent
New analysis shows that London renters now spend around 42% of their income on rent, meaning more than five months of their annual income goes directly to landlords.
Campaign group Generation Rent has labeled the situation “The Day’s Cost of Renting”, highlighting that rents in the capital are significantly higher than the England average and well above the government’s 30% affordability threshold.
These figures underline the long-term rise in rents relative to incomes, while the cost of housing is also linked to high levels of poverty and worsening inequality across London.
