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Author: David Sampson

  • FTB Mortgage Applications Fall by 9.1% in Q2 2026

    FTB Mortgage Applications Fall by 9.1% in Q2 2026

    Recent analysis indicates a significant decline in mortgage applications from first-time buyers (FTBs), with a 9.1% drop recorded in the second quarter of 2026. This downturn is attributed to ongoing economic uncertainty, which has affected buyer confidence in the housing market.

    TL;DR: First-time buyer mortgage applications decreased by 9.1% in Q2 2026, reflecting economic uncertainty; this trend may delay home purchases for many potential buyers.

    What is the Current State of FTB Mortgage Applications?

    Between March 30 and June 28, 2026, a total of 119,749 first-time buyers applied for mortgages, down from 131,682 during the same period in 2025. This represents a notable decline in interest from new entrants into the housing market. The overall activity for FTBs in the first half of 2026 also saw a decrease of 4.3%, with applications falling from 257,330 in H1 2025 to 246,197.

    Why Are FTB Mortgage Applications Falling?

    The decline in mortgage applications is largely linked to economic factors, including the end of stamp duty relief for first-time buyers in April 2025 and persistent affordability challenges. Despite a relatively steady performance in Q1 2026, the latest figures suggest that market volatility, particularly related to the ongoing conflict in the Middle East, is prompting potential buyers to reconsider or delay their purchasing decisions.

    What This Means for First-Time Buyers

    For first-time buyers, the drop in mortgage applications signals a challenging environment. With economic uncertainty and rising interest rates, many may find it increasingly difficult to secure financing or feel confident in making a purchase. This hesitation could prolong their journey to homeownership, as they weigh their options amid fluctuating market conditions.

    What About Home-Mover Applications?

    Home-mover applications also experienced a decline in Q2 2026, falling by 7.9% to 103,197 from 112,100. However, the overall activity for home-movers has remained relatively stable, with only a slight decrease of 1.1% since the beginning of the year. This steadiness contrasts with the more pronounced decline seen in first-time buyer applications.

    Frequently Asked Questions

    What factors are influencing the decline in mortgage applications?

    The decline in mortgage applications is primarily driven by economic uncertainty, the end of stamp duty relief for first-time buyers, and ongoing affordability challenges.

    How might this impact the housing market?

    The decrease in applications from first-time buyers could lead to reduced demand in the housing market, potentially affecting property prices and overall market activity.

  • RAW Capital Partners Launches Bridging Loans for Investors

    RAW Capital Partners Launches Bridging Loans for Investors

    RAW Capital Partners, a specialist lender based in Guernsey, has introduced bridging loans to its range of financial products, marking a significant expansion for the company. This move is particularly relevant for landlords, brokers, and investors seeking quick financing options secured against UK residential properties.

    TL;DR: RAW Capital Partners now offers bridging loans ranging from £100,000 to £4 million; this expansion provides new financing opportunities for landlords and investors.

    What are the details of the new bridging loans?

    The bridging loans from RAW Capital Partners are unregulated, first-charge loans secured against UK residential property. Borrowers can access loans from £100,000 up to £4 million, with terms ranging from three to 18 months. The maximum loan-to-value (LTV) ratio is set at 60%, with interest rates tiered based on the LTV. This flexibility allows investors to quickly secure funding for property acquisitions or renovations.

    Who can benefit from these bridging loans?

    The new bridging loans are designed for a diverse range of borrowers, including foreign nationals, UK expatriates, and Channel Islanders who have previously invested in UK buy-to-let properties. As of December 2025, RAW Capital Partners expanded its lending criteria to include UK residents, broadening its potential client base. This change is significant for those needing fast access to capital in a competitive property market.

    What this means for landlords and investors

    The introduction of bridging loans by RAW Capital Partners offers landlords and investors a valuable tool for financing property transactions quickly. With the ability to secure substantial loans at competitive rates, property buyers can act swiftly in a dynamic market, potentially gaining an edge over competitors. The emphasis on speed and certainty in the lending process is particularly beneficial for those looking to capitalise on time-sensitive opportunities.

    Frequently asked questions

    What types of properties can be used for securing bridging loans?

    Bridging loans can be secured against UK residential properties, providing flexibility for various investment strategies.

    How long does it take to obtain a bridging loan from RAW Capital Partners?

    The lender focuses on speed and certainty, aiming to provide quick access to funds, typically within a matter of days.

  • RAW Capital Partners Introduces Bridging Loans

    RAW Capital Partners Introduces Bridging Loans

    RAW Capital Partners, a specialist lender based in Guernsey, has expanded its offerings by introducing bridging loans secured against UK residential properties. This move is significant as it allows for unregulated, first-charge loans, providing a new financing option for various borrowers.

    TL;DR: RAW Capital Partners now offers bridging loans secured against UK residential properties; this expansion benefits brokers and investors seeking quick financing solutions.

    What are the key features of RAW Capital’s bridging loans?

    The new bridging loans from RAW Capital Partners are designed to cater to a variety of borrowers, including foreign nationals, UK expatriates, and now UK residents. These loans are particularly attractive for investors looking to secure fast funding for property acquisitions or renovations. The loans will be financed through the RAW Mortgage Fund, ensuring a robust backing for these financial products.

    How does this impact landlords and property investors?

    This development is particularly relevant for landlords and property investors who often require quick access to capital for property purchases or improvements. The ability to secure bridging loans provides flexibility and speed, which are critical in the fast-paced property market. Borrowers can tailor their financing to their specific needs and risk profiles.

    What this means for brokers and financial advisors

    For brokers, the introduction of these bridging loans presents an opportunity to offer clients a wider array of financing options. The emphasis on speed and certainty in the lending process aligns with the needs of many clients looking to act quickly in the property market. As RAW Capital Partners continues to expand its lending criteria, brokers should monitor these developments closely to better serve their clients.

    Frequently asked questions

    What types of properties can be used for bridging loans?

    Bridging loans from RAW Capital Partners can be secured against UK residential properties, making them suitable for various investment purposes.

    What is the maximum loan amount available?

    The maximum loan amount available through RAW Capital’s bridging loans is significant, with a minimum requirement also in place.

  • Bridging Finance Offers Reach £520 Million in Q2 2026

    Bridging Finance Offers Reach £520 Million in Q2 2026

    The latest report from Brickflow highlights a significant £520 million in property finance offers for the second quarter of 2026. This figure underscores the ongoing demand for bridging finance, despite a notable decline in search activity across various finance categories. The report reveals critical trends that could impact landlords, borrowers, and investors in the UK property market.

    TL;DR: Brickflow reported £520 million in property finance offers in Q2 2026; development finance constituted 61% of searches, indicating strong demand despite falling search volumes.

    What Types of Finance Are Being Sought?

    Brickflow’s data shows that development finance searches made up 61% of the total value of searches on its platform, translating to over £8 billion. Within this, development finance offers reached £236.5 million, bridging finance offers amounted to £258.9 million, and commercial mortgage offers totalled £24.6 million. This distribution reflects a robust interest in development projects, which may be appealing for investors looking to capitalise on property growth.

    How Are Bridging Searches Changing?

    Interestingly, while bridging finance offers were substantial, searches for bridging finance fell by 13.6%. This trend mirrors a broader market decline, as reported by the Bridging & Development Lenders Association, which noted a 15% drop in applications across the market, totalling £9.9 billion in the first quarter of 2026. This decline may suggest a cautious approach among borrowers amid economic uncertainties.

    What Does This Mean for Investors and Borrowers?

    For landlords and investors, the increase in development finance offers could signal opportunities for growth, especially as the number of bridging lenders willing to finance land with detailed planning permission rose by 61% between late 2025 and mid-2026. This expansion of lending options, including new entrants like HBI Capital and Pallas Capital to Brickflow’s panel, enhances the availability of bridging and development finance. Investors should consider leveraging these options to fund new projects or acquisitions.

    Frequently Asked Questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one, or to finance property development.

    How can I access bridging finance?

    Borrowers can access bridging finance through various lenders, including specialist finance platforms like Brickflow, which offer a range of options tailored to different property needs.

  • Mortgage Market Faces Rate Hikes Amid Swap Surge

    Mortgage Market Faces Rate Hikes Amid Swap Surge

    The UK mortgage market is experiencing significant upheaval as rising swap rates lead to increased mortgage pricing across various lenders. This shift is primarily driven by geopolitical tensions, particularly the escalating conflict between the US and Iran, which has resulted in oil prices reaching $100 per barrel for the first time since May. Borrowers are now facing higher costs as lenders adjust their offerings in response to these market changes.

    TL;DR: The two-year swap rate surged from 3.993% to 4.258%, prompting lenders like Nationwide and HSBC to raise mortgage rates; borrowers can expect higher costs across various mortgage products.

    What are the current changes in the mortgage market?

    As of July 22, the two-year swap rate increased significantly to 4.258%, up from 3.993% the previous month, while the five-year swap rate rose from 4.034% to 4.316%. These increases have prompted several lenders to adjust their mortgage pricing. For instance, Nationwide has raised rates for existing borrowers, with the two-year fixed additional borrowing product at 60% loan to value (LTV) now at 4.6%, up from 4.37%. Similarly, the 75% LTV deal has increased from 4.46% to 4.68%.

    Which lenders are increasing their mortgage rates?

    Multiple lenders have announced rate hikes in response to the rising swap rates. HSBC is set to implement its second rate increase this week, effective from July 27. Accord has also raised its fixed residential new business rates by 0.2% as of July 24, while TSB has increased its two-year fixed residential purchase and remortgage rates by up to 0.2%. Virgin Money has adjusted its product transfer rates, with residential pricing increasing by as much as 0.23%.

    What does this mean for borrowers and landlords in the mortgage market?

    For borrowers and landlords, these rate increases signify a shift towards higher mortgage costs. Existing borrowers with products from lenders like Nationwide and TSB will see their rates rise, making it more expensive to manage their mortgage payments. Landlords seeking buy-to-let (BTL) mortgages will also feel the impact, as BTL rates have risen by 0.1% across new business products. This trend could affect affordability and borrowing capacity, especially for first-time buyers and those looking to remortgage.

    What should borrowers watch for next in the mortgage market?

    Borrowers should keep a close eye on further developments in the mortgage market as lenders continue to adjust their rates in response to ongoing economic factors. With the Bank of England base rate remaining unchanged, the primary driver of these changes is the rising swap rates. It is essential for borrowers to stay informed about potential rate hikes and consider locking in current rates before they increase further. For those looking to compare options, checking mortgage rate comparison tools can provide insight into the best available deals.

    Frequently asked questions

    How will rising swap rates affect my mortgage?

    Rising swap rates typically lead to increased mortgage rates, meaning borrowers may face higher monthly payments and overall borrowing costs.

    Should I consider remortgaging now?

    Given the current trend of rising rates, it may be wise to explore remortgaging options now to secure a better rate before further increases occur.

  • RAW Capital Partners Expands Bridging Finance Options

    RAW Capital Partners Expands Bridging Finance Options

    RAW Capital Partners has introduced a new range of bridging finance products aimed at enhancing its offerings for UK investors. This move follows the lender’s recent expansion into the UK resident market, enabling them to cater to a broader audience, including landlords and property investors.

    TL;DR: RAW Capital Partners now offers bridging finance loans from £100,000 to £4 million, targeting UK landlords and property investors; the new products promise quick execution and competitive terms.

    What is the new bridging finance range?

    The Guernsey-based lender has launched bridging finance options with loan sizes ranging from £100,000 to £4 million. These loans are available for terms between three to 18 months and come with a maximum loan-to-value (LTV) ratio of 60%. The pricing is tiered based on LTV, allowing for flexibility depending on the borrower’s needs.

    How does this impact UK landlords and property investors?

    This new offering is particularly relevant for UK landlords and property investors looking for quick financing solutions. The bridging finance products are designed to provide speed and certainty, which are essential for investors needing to act swiftly in a competitive property market. With funding sourced from the RAW Mortgage Fund, which manages over £220 million in assets, borrowers can expect a reliable and efficient service.

    Why is speed and certainty important in bridging finance?

    In the fast-paced property market, the ability to secure funding quickly can make a significant difference for investors. Bridging finance often serves as a temporary solution, allowing landlords to seize opportunities such as property purchases, renovations, or auctions without the delays typical of traditional mortgage processes. RAW Capital Partners emphasizes these qualities as key benefits of their new range.

    Frequently asked questions

    What types of properties can be financed with bridging loans?

    Bridging loans can be used for various property types, including residential buy-to-let, commercial properties, and development projects, depending on the lender’s criteria.

    How quickly can I access bridging finance?

    RAW Capital Partners aims to provide quick execution, allowing borrowers to access funds within days, making it suitable for urgent property transactions.

  • Mortgage Market Update: Rates Rise Amid FCA Changes

    Mortgage Market Update: Rates Rise Amid FCA Changes

    The UK mortgage market is experiencing significant shifts as new FCA affordability rules facilitate increased remortgaging activity, while major lenders are adjusting their rates in response to rising costs. This evolving market is important for borrowers and investors to navigate, particularly as the government emphasizes housing initiatives.

    TL;DR: A surge in remortgaging is driven by new FCA rules, with 98% of modified affordability assessments used for external remortgages; meanwhile, major lenders are raising rates by up to 20 basis points, impacting borrowers and landlords alike.

    What are the new FCA affordability rules?

    The recent changes introduced by the Financial Conduct Authority (FCA) are designed to make it easier for borrowers to switch mortgage lenders. Research from Stonebridge indicates that 98% of modified affordability assessments were utilized for external remortgages in the first quarter of 2026. This shift allows more homeowners to seek competitive rates rather than remain with their current lenders, potentially saving them significant amounts on their mortgage payments.

    How is the mortgage market responding to rate changes?

    Several major lenders have announced rate hikes in response to increasing swap rates, which are impacting funding costs. Barclays, Halifax, HSBC, TSB, and Skipton are among those raising selected mortgage rates by up to 20 basis points. NatWest is also increasing rates on residential and buy-to-let mortgages, while Santander has expanded its offerings with new 10-year fixed deals but is raising rates across its product ranges. Accord Mortgages and Newcastle for Intermediaries are also adjusting their rates, with some reductions in specific areas.

    What does this mean for borrowers and landlords?

    For borrowers, the combination of rising rates and new FCA rules presents both challenges and opportunities. Those looking to remortgage can benefit from the more lenient affordability assessments, allowing them to switch to potentially lower rates offered by competitors. However, the rate increases mean that new borrowers may face higher costs when securing a mortgage. Landlords should also be aware of these changes, as buy-to-let mortgage rates are similarly affected, impacting their investment returns.

    What are the implications of the latest housing initiatives?

    Andy Burnham’s recent appointment as Prime Minister has brought renewed focus on housing, with plans to accelerate housebuilding and deliver the largest council house building programme since the post-war era. This initiative aims to address the ongoing housing shortage in the UK, with industry figures urging the government to meet its target of 1.5 million new homes. The success of these plans could significantly influence the mortgage market, as increased housing supply may stabilize or even reduce property prices in the long run.

    Frequently asked questions

    How can I take advantage of the new FCA rules?

    Borrowers can benefit from the new FCA rules by seeking remortgage options with different lenders, as the modified affordability assessments may allow them to qualify for better rates than before.

    What should I do if my lender raises my mortgage rate?

    If your lender raises your mortgage rate, consider exploring remortgage options with other lenders to potentially secure a lower rate, especially in light of the new FCA rules that facilitate switching.

  • RAW Capital Partners Expands Bridging Finance Offerings

    RAW Capital Partners Expands Bridging Finance Offerings

    RAW Capital Partners has launched a new range of bridging finance products, aimed at enhancing its offerings for UK residents. This expansion follows the lender’s recent entry into the UK resident market, allowing it to cater to a broader audience, including landlords and property investors.

    TL;DR: RAW Capital Partners now offers bridging loans with flexible terms; this development benefits landlords and brokers seeking quick financing solutions.

    What is Bridging Finance?

    Bridging finance is a short-term loan designed to bridge the gap between the purchase of a new property and the sale of an existing one. It is typically used in situations where quick access to funds is necessary, such as property auctions or urgent renovations. The new range from RAW Capital Partners caters to various investment needs.

    How Does RAW Capital Partners’ New Range Work?

    The bridging finance products feature flexible terms, with a maximum loan-to-value (LTV) ratio available. Pricing is tiered based on LTV, allowing borrowers to understand their costs upfront. This structured approach is particularly appealing to brokers who require clarity and speed in their transactions.

    What This Means for Landlords and Investors

    The introduction of these bridging loans is significant for landlords and property investors looking for rapid funding solutions. With an emphasis on speed and certainty, RAW Capital Partners aims to streamline the borrowing process, making it easier for investors to seize opportunities in the property market. The backing of the RAW Mortgage Fund enhances the lender’s capability to provide reliable financing options.

    Frequently Asked Questions

    What types of properties can be financed with bridging loans?

    Bridging loans can be used for various property types, including residential, commercial, and buy-to-let properties, making them versatile for different investment strategies.

    How quickly can I access funds through bridging finance?

    Bridging finance is designed for quick access to funds, often within a matter of days, depending on the lender’s processes and the completeness of the application.

  • RAW Capital Partners Launches New Bridging Finance Range

    RAW Capital Partners Launches New Bridging Finance Range

    RAW Capital Partners has introduced a new range of bridging finance options, expanding its offerings for UK landlords and investors. This move follows the lender’s recent entry into the UK resident market, enhancing its ability to cater to a broader audience in the property sector.

    TL;DR: RAW Capital Partners now offers bridging loans from £100,000 to £4m with terms from three to 18 months; this expansion benefits brokers and investors seeking quick financing solutions.

    What is Bridging Finance?

    Bridging finance is a short-term loan designed to bridge the gap between immediate funding needs and long-term financing solutions. It is commonly used in property transactions, allowing investors to secure properties quickly while they arrange more permanent financing options.

    Who Can Benefit from RAW Capital Partners’ New Range?

    The new bridging finance products are aimed at various stakeholders in the property market, including landlords, property investors, and brokers. With loan sizes ranging from £100,000 to £4m and a maximum loan-to-value (LTV) ratio of 60%, these products provide flexible options for those looking to seize property opportunities without delay.

    What This Means for Landlords and Investors

    For landlords and property investors, this expanded offering from RAW Capital Partners means increased access to fast and reliable funding. The focus on speed and certainty of execution is particularly beneficial in competitive property markets, where timely financing can make a significant difference in securing desirable investments.

    How Does This Compare to Other Bridging Finance Options?

    RAW Capital Partners’ bridging finance products are structured with tiered pricing based on LTV, which allows for tailored solutions depending on the specific needs of the borrower. This approach can be advantageous compared to more rigid offerings from other lenders, making it an attractive option for those needing quick access to funds.

    Frequently Asked Questions

    What are the terms for the new bridging finance range?

    The bridging finance range offers terms from three to 18 months, with loan sizes between £100,000 and £4m.

    What is the maximum loan-to-value ratio?

    The maximum loan-to-value (LTV) ratio for these bridging loans is 60%.

  • Surge in Swap Rates Impacts the UK Mortgage Market

    Surge in Swap Rates Impacts the UK Mortgage Market

    The UK mortgage market is experiencing significant changes as rising swap rates prompt lenders to increase their mortgage pricing. This shift is primarily driven by geopolitical tensions, particularly the ongoing conflict between the US and Iran, which has led to soaring oil prices and, consequently, higher borrowing costs for consumers.

    TL;DR: The two-year swap rate surged to 4.258%, prompting lenders like Nationwide and HSBC to raise mortgage rates; borrowers should prepare for increased costs.

    What are Swap Rates and Why Do They Matter?

    Swap rates are critical indicators in the mortgage market, reflecting the cost of borrowing for lenders. When swap rates rise, lenders often pass these costs onto borrowers through higher mortgage rates. As of July 22, the two-year swap rate increased to 4.258%, a notable rise from 3.993% the previous month. The five-year swap rate also saw an increase, moving from 4.034% to 4.316%. These changes are largely attributed to escalating tensions in the Middle East, particularly the closure of the Strait of Hormuz, which has driven oil prices to $100 per barrel for the first time since May.

    Which Lenders Are Raising Their Rates?

    Several major lenders have reacted to the rising swap rates by adjusting their mortgage products. Nationwide has increased rates across various mortgage tiers for existing borrowers. For instance, their two-year fixed additional borrowing product at 60% loan to value (LTV) has risen from 4.37% to 4.6%, while the 75% LTV option increased from 4.46% to 4.68%. The fee-free five-year fixed options also saw similar increases.

    HSBC has announced its second rate hike of the week, effective from July 27, while Accord raised its fixed residential new business rates by 0.2% as of July 24. TSB has also lifted its two-year fixed residential purchase and remortgage rates by up to 0.2%. Meanwhile, Virgin Money adjusted its product transfer rates, with residential pricing increasing by as much as 0.23%.

    What This Means for Borrowers and Landlords

    For borrowers, the recent rate hikes mean that mortgages are becoming more expensive, which could impact affordability and purchasing decisions. Existing homeowners looking to remortgage or switch products may find themselves facing higher costs. For landlords, the increases in buy-to-let (BTL) rates, such as those from Accord and TSB, could affect the profitability of their investments, especially if they rely on refinancing or new purchases.

    Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, noted that these increases are driven by rising swap rates rather than changes to the Bank of England base rate. Nevertheless, the effect on borrowers is significant, as they will need to adjust their budgets to accommodate higher mortgage payments.

    What Should Borrowers Watch Next in the Mortgage Market?

    As the situation evolves, borrowers should keep a close eye on further announcements from lenders regarding mortgage rates. The ongoing geopolitical tensions and their impact on swap rates will be important in determining future pricing. Additionally, potential changes to the Bank of England base rate could also influence mortgage costs in the coming months. Borrowers may want to consider exploring mortgage rate comparison tools to find the best available options.

    Frequently Asked Questions

    How do rising swap rates affect my mortgage?

    Rising swap rates typically lead to increased mortgage rates, which means that borrowers may face higher monthly payments and overall borrowing costs.

    What should I do if my mortgage rate increases?

    If your mortgage rate increases, consider reviewing your options for remortgaging or switching to a different product. It may also be beneficial to consult with a mortgage advisor for tailored advice.