This week’s prime tales embody Nationwide and Rightmove launching a property lending test, and Knight Frank elevating its home worth forecast as base charge cuts are anticipated to help demand.
Dive into these and extra key updates under.
Nationwide and Rightmove launch property lending test
Nationwide and Rightmove launched a digital “property lending test” characteristic to assist homebuyers assess mortgage eligibility earlier than viewing a property. The device evaluated dangers like flooding or quick leases, offering real-time lending chance. Beforehand, patrons solely knew borrowing quantities, not property-specific eligibility. The initiative aimed to streamline the UK property market, lowering delays. Specialists praised the characteristic for stopping late-stage mortgage rejections. Rightmove deliberate additional enhancements, whereas Nationwide referred to as it a pure development from their mortgage-in-principle device.
Knight Frank lifts home worth forecast as base charge cuts ‘underpin’ demand
Knight Frank raised its UK home worth forecast to three.5% for 2025, up from 2.5%, citing anticipated base charge cuts as a key demand driver. The Financial institution of England’s charge discount to 4.25% and market predictions of additional easing boosted market confidence. Halifax reported a 0.3% month-to-month worth rise in April. Rental forecasts additionally elevated barely because of the tight provide. Knight Frank projected cumulative worth development of twenty-two.8% over 5 years.
Nationwide newest to regulate stress charges following FCA clarification
Nationwide decreased its mortgage stress charges by 0.75 to 1.25 share factors following FCA steerage permitting lenders to evaluate affordability towards product charges fairly than revert charges. The change enabled debtors, significantly first-time patrons utilizing its Serving to Hand scheme, to entry greater loans, averaging £28,000 extra. Nonetheless, the Financial institution of England’s 15% loan-to-income cap restricted its influence. Specialists praised the transfer however referred to as for broader regulatory reforms to additional ease affordability constraints.
Common two-year repair falls to lowest charge since 2022: Moneyfacts
The typical two-year fastened mortgage charge fell to five.18% in Could 2025—its lowest since September 2022—whereas five-year fixes dropped to five.10%. Moneyfacts reported declining swap charges drove cuts, narrowing the hole between short- and long-term offers. Product availability rose to six,993, the very best since 2007, although shelf-life shortened to 19 days. Specialists famous improved choices for first-time patrons however cautioned debtors would possibly nonetheless want longer fixes amid market volatility.
New guidelines for letting brokers come into pressure tomorrow
New guidelines requiring letting brokers to display screen all landlords and tenants towards UK monetary sanctions lists took impact on 14 Could 2025. Brokers needed to confirm identities and report matches to authorities, eradicating the earlier €10,000 (£8,275) lease threshold. Non-compliance risked £1 million fines. Goodlord warned that many landlords felt unprepared for the modifications, which aimed to stop sanctioned people from renting properties. The mandate applies to instruction for landlords and post-offer for tenants.
Perenna renews credit score line with ABN AMRO
Perenna Financial institution renewed and expanded its £200 million warehouse credit score facility with ABN AMRO, extending the settlement till July 2026. The deal, constructing on their April 2024 partnership, aimed to help Perenna’s development within the UK mortgage market. COO Colin Bell said the funding would allow extra lending for progressive merchandise addressing housing affordability. The transfer strengthened Perenna’s mission to develop homeownership alternatives by way of versatile financing options.
Halifax cuts charges, together with 2-year repair at sub-4%
Halifax decreased mortgage charges on 22 April 2025, introducing a sub-4% two-year fastened charge at 3.94% (60% LTV, £999 payment). The lender additionally minimize five-year fixes to 4.27% (80% LTV, £999 payment) and 4.38% (80% LTV, no payment). Two-year merchandise at 90-95% LTV fell 0.19% to five.15% (no payment). The reductions made Halifax probably the most aggressive lenders out there for each homebuyers and remortgagers.
L&C Mortgages adopts One Mortgage System’s CRM answer
London & Nation Mortgages carried out One Mortgage System’s CRM answer on 13 Could 2025 to streamline operations and improve customer support. The totally built-in system improved workflow effectivity and information administration for the brokerage. OMS CEO Dale Jannels praised L&C’s fame, whereas L&C CEO Mark Harrington highlighted the platform’s flexibility in assembly their wants. The partnership aimed to optimise inner processes and elevate buyer experiences by way of technological innovation.
Barclays launches lowest charge this 12 months at 3.85%, Principality cuts resi and JBSP charges
Barclays launched its lowest 2025 charge at 3.85% on 12 Could, reducing a number of merchandise together with a fee-free remortgage (4.18%, down 19bps) and inexperienced mortgage (4.08%). Principality additionally decreased residential charges by as much as 0.21%, with JBSP cuts together with 0.20% on two-year 75% LTV offers. The strikes intensified competitors as Barclays’ five-year repair fell to three.99% and Principality trimmed cashback merchandise, signalling a broader market charge decline.
Opinion: FCA’s newest CP makes a nonsense of Shopper Obligation
The FCA’s CP25/11 proposal to take away obligatory mortgage recommendation necessities risked undermining Shopper Obligation rules, argued Sebastian Murphy. The 13 Could 2025 opinion piece warned that the change favoured lenders searching for to scale back dealer involvement, jeopardising client protections. Murphy highlighted advisers’ holistic function in figuring out dangers like safety gaps or affordability points, now threatened by execution-only choices. Regardless of latest Shopper Obligation emphasis on recommendation high quality, the session appeared to prioritise value financial savings over appropriate outcomes, probably harming each customers and the recommendation sector.
