20 Apr to 24 Apr – Mortgage Strategy

This week’s top headlines: FCA issues warning to networks on oversight of ARs and NatWest cuts rates by up to 37bps.

Explore these and other major industry updates below:

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FCA issues warning to networks on oversight of ARs

The Financial Conduct Authority has warned network principals about the risks of failing to properly oversee appointed representatives, highlighting concerns over inactive firms and weak monitoring practices that could expose consumers to harm.

The review found some principals lacked clear understanding of their ARs’ activities and failed to document or act on issues appropriately, prompting calls for stronger governance, regular reviews and more proactive supervision to ensure compliance and protect customer outcomes.

NatWest cuts rates by up to 37bps

NatWest is cutting mortgage rates by up to 37 basis points across residential and buy-to-let products, including new business, remortgages and existing customer deals, marking a shift after recent increases.

The move follows reductions from HSBC and others, with data from Moneyfacts showing average fixed rates have begun to edge down, although market conditions remain uncertain.

Barclays slashes mortgage rates by up to 36bps

Barclays will cut more than 20 purchase and remortgage rates by up to 36 basis points, with some two-year fixed deals at lower loan-to-values becoming among the most competitive in the market.

This reflects a broader shift as lenders, including Market Harborough Building Society, increasingly reduce rates, bringing more mortgage pricing back below 5%.

Lloyds Banking Group, Connells and LMS launch fully digital homebuying service

Lloyds Banking Group, Connells Group and LMS have partnered to launch a fully digital homebuying service aimed at speeding up property transactions in England and Wales.

The platform uses shared data via LMS’s network to streamline processes, reduce delays and improve transparency, with support from firms including Moverly and Armalytix.

The initiative is designed to cut paperwork, make sellers “digital sale ready” earlier and reduce the risk of transactions falling through.

Richard Goppy rejoins PMS Mortgage Club

PMS Mortgage Club has reappointed Richard Goppy as director of acquisition and key accounts, where he will focus on attracting new firms and strengthening relationships with existing members.

Bringing more than 40 years’ experience and returning after a decade in senior roles, his appointment underlines the firm’s commitment to supporting sustainable growth and strong partnerships across its network.

Brokers concerned lenders not keeping pace with evolving borrower needs

Research from Nottingham Building Society shows 83% of mortgage brokers believe lenders are failing to keep pace with borrowers’ changing needs, highlighting growing concern that traditional affordability models do not reflect modern working patterns.

With the Financial Conduct Authority reviewing mortgage rules, brokers warn that groups such as the self-employed and those with irregular or multiple incomes are being disadvantaged, and are calling for more flexible criteria and affordability reforms to better support a wider range of borrowers.

FCA shows positive intent in tackling distribution silos preventing access to later life lending: Key

Key Equity Release has welcomed the Financial Conduct Authority’s later life mortgage market study but urged the industry to break down distribution barriers and improve awareness of lending options for over-55s.

It argues that better access to advice and more holistic consideration of products such as lifetime and RIO mortgages could significantly improve customer outcomes, with a large untapped market remaining among older borrowers still using mainstream mortgages.

Atom bank Near Prime Index highlights cost of living pressures

Atom Bank’s Near Prime Index shows rising cost-of-living pressures are increasingly driving demand for Near Prime mortgages, with more first-time buyers entering this segment and brokers highlighting a lack of high loan-to-value options as a key barrier.

While defaults remain the main reason for Near Prime status, lender appetite and competition are improving, reducing pricing premiums, and demand is expected to continue growing despite ongoing market uncertainty.

Asking prices dip by 0.9% year on year: Rightmove

Rightmove reports that average asking prices dipped 0.9% year-on-year to £373,971 in April but rose slightly month-on-month, with the market showing resilience despite higher mortgage rates and global uncertainty.

Buyer demand and agreed sales remain below last year’s levels, although rising wages and borrowing capacity are supporting affordability, while higher-end homes and regions such as Scotland are driving price growth.

Overall, activity is holding steady, but elevated mortgage rates are expected to persist and continue shaping buyer behaviour.

Remortgage applications surge 46% in Q1: Stonebridge

Stonebridge reports remortgage applications surged 46% in the first quarter, driving overall mortgage activity up 25% despite a slight decline in house purchase and first-time buyer demand.

The rise is linked to large numbers of fixed-rate deals ending, with UK Finance noting 1.8 million are due to expire in 2026, while two-year fixes have grown in popularity and remortgaging is expected to remain strong as borrowers seek new deals.