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Daily Mail
14-07-2025
- Business
- Daily Mail
Give more first-time buyers bigger mortgages, Reeves tells finance firms
More first-time buyers could get bigger mortgages, as Rachel Reeves enables lenders to loosen their lending rules to help more people on lower incomes buy a home. The Chancellor is expected to announce the reforms to financial regulation at a summit of top finance executives in Leeds today, ahead of her Mansion House speech in the City of London. Since 2014, lenders have been subject to a rule which means loans of more than 4.5 times the borrower's annual income can only make up 15 per cent of their mortgage book. For example, someone earning £40,000 a year would usually be restricted to borrowing no more than £180,000. This rule now looks set to change with more mortgages being made available at higher income multiples - with some even as high as six times annual salary. On a £40,000 annual salary that could mean being able to borrow £240,000 towards a first home. It follows the Prudential Regulation Authority's recent announcement, enabling lenders to increase high loan-to-income lending. It also follows recent recommendations by the Bank of England that some banks and building societies offer more high loan-to-income mortgages. Labour claims the move will create up to 36,000 additional home loans for first-time buyers over the first year. Nationwide to offer more mortgages at 6x income Nationwide is also set to widen access to its 'Helping Hand' mortgage, which allows some first-time buyers to borrow up to six times their income with deposits as low as 5 per cent. From Wednesday, eligible first-time buyers can apply for the mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary, down from £55,000. The building society says the Helping Hand mortgage has been used by more than 57,000 customers since its launch in 2021, and that today's move could enable 10,000 more to get on the property ladder. Nicholas Mendes, mortgage technical manager at broker John Charcol thinks the reforms will help first-time buyers who have struggled to borrow enough to buy a home, despite having a stable incomes and a strong record of paying rent. He said: 'Many would-be buyers have felt locked out of the system, not because they lack financial discipline or reliability, but because the rules haven't kept pace with the way people actually live and budget.' 'Lowering the income threshold for products like Nationwide's Helping Hand mortgage will open the door for thousands more people, especially key workers and young professionals, to get on the ladder.' Mortgage broker Aaron Strutt of Trinity Financial, added: 'It can be really hard for those on lower incomes to borrow anywhere near the amount they need to buy a home, even if they have a large deposit. 'The argument is that they have less disposable income and therefore they can't afford a larger mortgage - even though many of them are paying high rents.' How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
Yahoo
14-07-2025
- Business
- Yahoo
Major banks slash interest rates despite RBA cash rate hold: 'Not a coincidence'
Numerous banks, including NAB and ANZ, have cut interest rates on term deposit and fixed home loans despite the Reserve Bank of Australia (RBA) holding the cash rate steady. The central bank defied expectations by keeping the cash rate at 3.85 per cent last week, but that doesn't mean lenders aren't moving. NAB cut its term deposit rates today, with decreases of between 5 to 20 basis points across multiple terms. Its 7-month term has been cut by 20 basis points, bringing its leading rate down to 3.80 per cent. Mozo personal finance expert Rachel Wastell told Yahoo Finance the bank was one of 17 banks who had made term deposit cuts following the RBA's decision. RELATED Major banks reveal updated RBA interest rate cut predictions after 'surprise' hold ATO tax return warning for 2 million Aussies over dangerous act Bendigo Bank customers fight against branch closure amid cashless revolution 'When 17 banks, both big and small, slash term deposits within a week it's not a coincidence, it's a signal,' she said. 'Even after the RBA held, the market kept on cutting these forward-looking products, which shows that lenders are most likely preparing for more rate cuts and that the easing cycle is well and truly underway.' Fellow Big Four bank ANZ trimmed its 8-month Advance notice term deposit by 10 basis points on Wednesday, bringing its highest rate down to 3.80 per cent. Other banks that have moved rates downwards include Bank Australia, Judo Bank, and People's Choice. Fixed home loan rates are also falling, with Mozo seeing four lenders cut rates following the RBA decision. On Wednesday, QBANK cut its fixed rates by 20 to 30 basis points, with SWS Bank, Coastline Bank and The Capricornian following suit. Wastell said it was a rate shift and 'both savers and borrowers should take the hint'. 'If banks thought rates were staying put, we wouldn't be seeing term deposits and fixed-rate home loans falling,' she said. 'Fixed rates and term deposits are forward-looking products, so banks adjust them based on where they expect the cash rate (and wholesale funding costs) will go. 'The fact that both big and small lenders are trimming fixed rates across home loans and deposits, even after the RBA paused last week, suggests they're confident further cash rate cuts are coming and want to get ahead of the curve.'The major banks all expect the RBA will cut interest rates at the August meeting. They are then split on how many more interest rate cuts are coming. Here are their current forecasts: CBA: Two more cuts in August and November to bring cash rate to 3.35 per cent Westpac: Four more cuts in August, November, February and May to bring cash rate to 2.85 per cent NAB: Three more cuts in August, November and February to bring cash rate to 3.10 per cent ANZ: Two more cuts in August and November to bring cash rate to 3.35 per cent On a $600,000 mortgage, Canstar calculated two further cuts could see minimum repayments drop by almost $180. If there are four cuts, minimum repayments could drop by up to $350, depending on the timing of the cuts. While further RBA interest rate cuts will be good news for mortgage holders, it has sparked a warning for savers. Wastell told Yahoo Finance the 'window is closing' for savers holding out for a better deal. 'Those peak term deposit rates are already behind us and banks are clearly repositioning for the next phase of cuts. This round of cuts tells us they're betting on more to come, and that even these lower rates won't be around for much longer,' she said. 'If you're thinking about locking in a deposit, now would be the time to move. The banks aren't waiting for the RBA, and the leading rates are only getting lower.'Sign in to access your portfolio
Washington Post
10-07-2025
- Business
- Washington Post
Average long-term US mortgage rate rises to 6.72%, ending a five-week slide
The average rate on a 30-year U.S. mortgage edged up this week, ending a five-week decline in borrowing costs for homebuyers. The long-term rate ticked up to 6.72% from 6.67% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.89%. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose. The average rate increased to 5.86% from 5.80% last week. A year ago, it was 6.17%, Freddie Mac said.
Daily Mail
09-07-2025
- Business
- Daily Mail
Mortgage battle between major banks ramps up as HSBC cuts rates for third time in two weeks
Mortgage lenders are in a game of tit for tat as they battle for top spot across best buy tables. HSBC became the latest lender to announce it's lowering home loan prices today. This is the third time in two weeks that the bank has cut rates. It follows on from Barclays, Santander and Halifax, which all yesterday announced mortgage rate cuts. Barclays introduced widespread reductions from today, including stand-out three and five-year fixed deals under 4 per cent for both homebuyers and landlords. Halifax followed suit, reducing selected fixed rates by up to 0.15 percentage points for home movers and remortgage customers. NatWest also announced a wave of cuts across fixed rate deals on Monday with buyers and those remortgaging benefitting. While we don't know what HSBC's new rates will be until they are unveiled tomorrow, it is likely it will be aiming to regain top spot across certain products. Mortgage lenders offering market leading rates to home buyers and those remortgaing tend to see sudden influxes of customers, forcing others banks to react. HSBC now finds itself behind NatWest (3.81 per cent), Halifax and Lloyds Bank (3.84 per cent) in offering the lowest two-year fixes for homebuyers. It's the same story when it comes to the lowest five-year fixed rate deals with NatWest's 3.91 per cent fix, Halifax and Nationwide's 3.97 per cent rate beating HSBC's 3.98 per cent. Lenders appear embroiled in a somewhat tediously slow race to the bottom - with rates changes of as little as 0.01 percentage points simply to usurp one another. Another area of the market HSBC might target tomorrow is for products aimed at remortgaging households. An estimated 900,000 households will reach the end of their existing mortgage deal between now and the end of the year, according to UK Finance. Many will be coming off mortgage rates between 1 per cent and 2 per cent, taken at a time when interest rates were at rock bottom. HSBC's lowest rate for someone remortgaging with 25 per cent equity in their home is currently 4.07 per cent. It may be looking to overtake NatWest, Santander, Halifax, Nationwide and Barclays in this category - all are offering marginally low rates. 'HSBC's third rate cut in just two weeks looks to be a determined push to regain a leading position in the mortgage market,' said Nicholas Mendes, mortgage technical manager at John Charcol. 'This latest move follows closely behind recent repricing from Barclays and Halifax, both of whom have trimmed rates across residential and buy-to-let ranges. 'In this context, HSBC's latest rate change appears not just reactive but strategic. With cuts applied across residential and buy-to-let, it is clearly aiming to re-establish itself at the top of the pricing tables. 'Falling swap rates and a softening outlook from the Bank of England have created the conditions for lenders to move more aggressively, and HSBC is taking full advantage.' Mendes says he expects to see further rate cuts over the coming days and weeks and lenders continue to battle for top spot on the best buy tables. 'With multiple big names now making successive reductions and competition intensifying by the day, the battle for best-rate positioning is well and truly underway,' he added. 'It would be no surprise to see further movement from other major lenders in the coming days.' How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
RNZ News
07-07-2025
- Business
- RNZ News
BNZ's new offer for technology entrepreneurs
The Bank of New Zealand (BNZ) is offering something new for technology entrepreneurs. Photo: RNZ / Nate McKinnon The Bank of New Zealand (BNZ) is offering something new for technology entrepreneurs - a tailored home loan product. BNZ said tech company founders struggled to get mortgages because standard bank lending criteria did not recognise how high-growth tech start-ups operated. "The core problem is that for [tech] companies who have traditionally been in a loss-making phase, the negative earnings would be applied to their [founder's] personal income," Tim Wixon, BNZ head of technology industries, said. Wixon said this negatively impacted their debt-servicing metrics using traditional banking criteria. He said that could effectively lock tech company founders out of the mortgage market. BNZ's 'Founder Housing' programme used different metrics to assess tech company viability, noting that tech companies' finances were typically heavily front-loaded with research & development, marketing, and expansion, which could create losses that appear on founders' personal financial assessments. Wixon said that it had already trailed the programme with a small number of tech company founders before its official launch, and that the bank's standard deposit, security and affordability criteria still applied before granting loans. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
