Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Major Lenders Hike Mortgage Rates as Rayner Returns to Housing Secretary

UK mortgage lenders including Barclays, Halifax, HSBC, TSB, and NatWest are increasing selected mortgage rates by up to 20 basis points. Angela Rayner has returned as Housing Secretary in Prime Minister Andy Burnham’s new cabinet, replacing Steve Reed.

Barclays, Halifax, HSBC, TSB, and Skipton are among the major lenders raising selected mortgage rates, citing rising swap rates and increased funding costs. NatWest is also increasing selected residential and buy-to-let mortgage rates by up to 20 basis points, joining the wave of repricing across the sector. Santander will increase fixed mortgage rates across its new business and most product transfer ranges from 22 July, while also expanding its product offering with new 10-year fixed deals and additional new-build options. Accord Mortgages is raising many residential and buy-to-let rates, though some residential products will see reductions. Newcastle for Intermediaries has relaunched its joint borrower sole proprietor mortgage range.

In contrast, Shawbrook has reduced some rates, while Keystone has increased selected buy-to-let rates. These changes come as industry experts warn that ongoing geopolitical tensions and inflationary pressures are reducing the likelihood of near-term interest rate cuts.

Angela Rayner’s return as Housing Secretary follows her appointment by Prime Minister Andy Burnham, who has prioritised housing in his new cabinet. Burnham has pledged to accelerate housebuilding and deliver the largest council house building programme since the post-war era. Steve Reed steps down from the role after less than a year.

Santander UK’s mortgage book has grown by £35.7bn to £204.7bn following its acquisition of TSB, making it the UK’s fourth-largest mortgage lender. The bank reported gross mortgage lending of £14.7bn in the first half of 2026, with low mortgage arrears and strong asset quality.

The Financial Ombudsman Service (FOS) has appointed Jenny Simmonds as permanent chief executive officer and James Dipple-Johnstone as permanent chief ombudsman. The appointments follow an open recruitment process and come after a period of reform at the organisation.

Vida has rebranded its later-life mortgage proposition as Next Chapter Lending, introducing updated criteria to support older first-time buyers, home movers, and borrowers with mortgages extending into retirement.