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.

MPs Call for Stamp Duty Reform and Lenders Adjust Buy-to-Let Rates

A cross-party parliamentary committee has called on the government to review and reform stamp duty to improve housing affordability for first-time buyers. Meanwhile, several lenders have announced changes to buy-to-let mortgage products and rates.

The committee recommended that the government hold a consultation by the end of 2026 to explore alternatives to stamp duty, alongside council tax reform. The MPs also urged action to bring long-term empty homes back into use. They stated that reforms to stamp duty, savings products for first-time buyers, and housing supply could help more people onto the property ladder, but emphasised that increasing the availability of homes remains essential to improving affordability.

CHL Mortgages has launched limited-edition buy-to-let products starting from 2.70% and reduced rates across its short-term let range by 30 basis points, with pricing now starting from 3.16%. HSBC is set to introduce broad mortgage rate reductions, Foundation will withdraw most of its buy-to-let range ahead of new products, and YBS Commercial has cut selected five-year fixed rates by 0.15%, including deals for buy-to-let investors, HMOs, MUFBs, and semi-commercial properties.

Hodge Bank has updated its residential and retirement mortgage ranges by increasing maximum loan sizes at higher loan-to-value levels and relaxing some affordability criteria. The lender has raised its maximum loan at 95% LTV from £600,000 to £750,000, doubled the 90% LTV limit to £2 million, and increased the 85% LTV cap to £2.5 million. Hodge will now accept 100% of bonus income and disregard voluntary pension contributions in affordability assessments.

Bank of England data shows new mortgage commitments rose by 12% to £78bn in the first quarter of 2026, while the value of mortgages actually advanced fell by more than 12% to just under £70bn. Remortgaging continued to grow, while the share of loans for house purchases declined and buy-to-let lending increased slightly.

The FCA has proposed mortgage rule changes to make it easier for first-time buyers, older borrowers, and self-employed applicants to access lending. The plans would give lenders more flexibility in affordability assessments and support wider use of retirement interest-only and interest-only mortgages. Consultation responses are invited until 28 July 2026.