"From Consumer Duty to rising mortgage rates and a plethora of criteria changes, we’ve covered all the top stories across the financial services industry"
There’s no denying that 2023 has been an interesting – and difficult to predict – year for the mortgage market.
From Consumer Duty to rising mortgage rates and a plethora of criteria changes, we’ve covered all the top stories across the financial services industry to keep our intermediary readers informed amid a busier-than-ever 12 months.
But which of our stories gained the most views? Here are your top 10 most read articles of 2023:
10. Skipton launches 100% LTV mortgage
Back in May, the market saw a return to 100% LTV mortgages with Skipton’s ‘Track Record Mortgage' exclusively for current renters.
As the cost-of-living crisis increased and affordability became stretched, Skipton offered tenants who can evidence affordability and have a strong track record of rental payments to borrow up to 100% of a property value.
9. Openwork and LSL acquire Tenet Group's AR networks
In August, LSL has acquired TenetLime in a deal worth £12.9m, while The Openwork Partnership acquired Tenet Wealth & Investment Network.
The deals made headlines across the adviser community, with brokers debating the difficulties, fears and ramifications of the news on forums in the weeks following the announcements.
8. Nationwide launches 0% green mortgage product
This summer, Nationwide Building Society reduced the interest rate on its green additional borrowing products to 0%.
The products launched in June and enabled up to 5,000 households with a Nationwide mortgage to borrow £5,000-£15,000 interest-free.
7. Budget 2023: Government confirms full 8.5% increase to State Pension
Not surprisingly, last month’s Budget announcements featured in our most read stories of the year.
Despite a largely underwhelming Autumn Statement for the housing market, the government’s commitment to honour the Triple Lock in full, meaning an 8.5% increase to the State Pension next year, made for popular reading among intermediaries and consumers alike.
6. Government launches new mortgage charter to support struggling borrowers
As the summer brought continued struggles for mortgage holders, the government launched a new Mortgage Charter, with lenders agreeing to provide a set of universal standards to help and reassure borrowers worried by high interest rates.
Lenders representing 85% of the mortgage market immediately signed the charter, pledging to offer tailored support for anyone struggling, including extending their term to reduce payments or switching to interest-only payments.
5. Will we see the return of sub-5% two-year fixed rates in 2023?
Back in September, brokers discussed whether we could see sub-5% two-year fixed rates before the end of 2023.
The latest Rightmove data shows that the average two-year rate has reduced from 6.61% at its peak in July to 5.48% by mid-December.
However, a variety of sub-5% fixed rates have now returned to the market, with the current lowest two-year fixed rate at 60% LTV available at 4.65% and the lowest 75% LTV product now at 4.70%.
4. What will happen to buy-to-let in 2023?
At the start of the year, mortgage brokers and property experts discussed what they thought would happen in the buy-to-let market in 2023. Some predicted an exodus, while others believed the year could be an opportunity for savvy and cash rich landlords.
While some landlords have exited the market in what’s been a tough year, falling rates and a lack of further regulation in the sector could present opportunities in 2024.
3. FCA takes first action under Consumer Duty
In September, the FCA asked nine banks and building societies to provide value assessments on its saving products. It followed concerns that interest rate rises were not being passed on to customers and their savings accounts. In July, the FCA issued a 14-point action plan to ensure banks are offering better savings rate deals.
The assessment followed the introduction of the Consumer Duty in July 2023, which requires firms to ensure the products and services across their range deliver fair value to their customers and act if they do not.
2. Sunak scraps EPC regulations - industry reacts
One of the most read stories this year concerned the government scrapping proposed energy efficiency targets for households, including rental properties.
The changes to EPC requirements were due to come into force in 2025 and would have required all properties covered by a new tenancy agreement to meet an EPC rating of C or above, with all rental properties due to meet the standard from 2028.
However, in September Rishi Sunak watered down several green policies, stating: "Under current plans, some property owners would have been forced to make expensive upgrades in just two years' time.
"That’s just wrong. So those plans will be scrapped and while we will continue to subsidise energy efficiency, we’ll never force any household to do it."
The property industry reacted to the speech with mixed views. Some welcomed the relaxation of the rules during a cost-of-living crisis, but others accused the Conservatives of "kicking the can down the road".
1. Bank of England raises interest rates to 4.5%
Unsurprisingly, the most read story on Financial Reporter this year was one of several interest rate rises. This one, announced back in May, took Bank Rate to 4.5% - the 12th consecutive rise.
However, this turned out not to be the last of the tightening, with Bank Rate currently at 5.25%, but expected to fall at some point next year – could that be the most read story of 2024?
