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Cost of Living Crisis: Halifax Joins Rivals in Cutting Mortgage Rates

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Summary: Halifax , the UK's biggest mortgage lender, is reducing rates by up to 0.71 percentage points. HSBC and other major banks have also announced rate cuts in response to rising mortgage rates. The reduction in rates provides relief to homeowners and potential buyers, especially for fixed-rate deals. The move is influenced by expectations of Bank of England rates and inflation trends. Mortgage rates have been on the rise due to consecutive interest rate increases by the Bank of England . Recent decrease in inflation offers optimism about possible rate stabilization. Mortgage companies are aiming to attract customers by ...

More Concerns for UK Economy Ahead of Vital Inflation Data

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Summary: The UK economy faces concerns as initial data shows an unexpected rise in June's inflation rate to 4.2%. Job numbers indicate potential hesitance by the Bank of England in raising interest rates . Unemployment reaches levels not seen since October 2021 amid recent events like Wilco's administration. Average hourly earnings grew by 8.2% in June, aligning with expectations of further interest rate increases. The uncertain monetary policy outlook hinges on upcoming consumer price inflation figures. Sterling reacts positively to data release, impacting currency performance. Future economic trajectory depends on up...

Interest rates: Banks not passing on £23bn to savers

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Interest rates: Banks not passing on £23bn to savers Work no longer pays what it used to. Inflation is eroding our earnings and banks aren't passing on higher interest rates to savers. Pensioners like Carol say their money isn't working as hard as it used to. I've been trying to create a financial buffer. And every time I get a little bit saved, something happens. So that's going to be at the moment the cost of living crisis. If I want to actually have a life, I have to work. Back in December 2021, the Bank of England's interest rate stood at just 0.1%. With the average savings rate on the high street at 0.2%. But while the Bank of England has since hiked its main interest rate to 4%, average savings rates among high street banks have only risen to 1.88%. It means that those with £30,000 of savings only stand to make £569 in interest each year. That's less ...

Housing Market to Become 'VOLATILE' as Lenders Cut Rates of Mortgage Deals

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Summary: Housing costs are rising significantly, affecting millions of homeowners on variable or fixed-rate mortgages. The Bank of England's successive rate increases bring short-term stability but pose challenges for those struggling with housing costs. Volatility in the housing market is expected as some homeowners need to sell their properties at reduced prices. Investment in energy-efficient and high-quality housing stock is essential for the long-term stability of the market. ...

Cost of Living: Food Price Inflation Continues to Fall

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Summary: Food inflation has fallen for the fifth consecutive month, albeit not as rapidly as before. Staple items like milk and sunflower oil have seen price decreases, providing some relief for shoppers. Branded goods, including popular items like chocolate slices and cheddar, have witnessed significant price spikes. The Bank of England's chief economist anticipates that food prices may not return to pre-pandemic levels. ...

Chancellor Sunak Acknowledges Inflation Slower to Decline Than Desired

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Summary: Chancellor Rishi Sunak admits inflation is not declining as fast as desired but asserts progress is being made. Sunak emphasizes the importance of bringing down inflation to alleviate financial pressures on citizens and lower interest rates. Practical assistance for homeowners includes the mortgage charter, enabling options like extending mortgage terms or switching to interest-only mortgages. Sunak's determination to make responsible decisions and protect citizens' equity aims to prevent people from losing their homes. ...

UK Retail Sales Up on the Month, Down on Last Year Amid Economic Uncertainty

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Summary: Retail sales in the UK increased by 0.7% in June 2023 compared to the previous month, but were down by 1% compared to June 2022, indicating a gradual slowdown. Consumer confidence in July showed a decline, attributed to rising interest rates, fiscal drag, and reduced disposable income. Small businesses face challenges due to the cost of doing business, including higher interest rates, inflation, and the highest tax burden in 70 years. The UK government borrowed £18.5 billion in June 2023, with a significant portion going towards paying interest on previous debt. Debates arise about the sustainability of government borrowin...

UK Housing Market Faces Sharp Decline as Prices Fall at Fastest Rate in 14 Years

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Summary: UK housing prices experienced the sharpest decline in 14 years, falling by 3.8% in July. Rising mortgage rates and high interest rates are affecting potential buyers' affordability. Estate agents are witnessing an increase in sellers needing to sell for financial reasons. The Bank of England is expected to raise interest rates for the 14th consecutive time in the near future. House prices are likely to continue falling, presenting an opportunity for first-time buyers. ...

Eurovision 2023: Decision to ban Volodymyr Zelenskyy from making address 'disappointing'

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Eurovision 2023: Decision to ban Volodymyr Zelenskyy from making address 'disappointing' So, very good morning to you, and I do want to talk about Eurovision in just a moment. But before we get on to that, a couple of stories around today that I want to ask you about. Firstly, comments by the former Conservative Home Secretary, Preeti Patel today, saying that Rishi Sunak needs to offer more hope and optimism for conservatism, or she says he risks presiding over a managed decline of the party and defeat of the next election. Is she right? So, you know, I have a marginal seat. I am reliant on the grassroots of the party to help me. They are determined, as I am, and I think most people within the party, to support the Prime Minister in the endeavours that he has to try and grow the economy and tackle the issues that are the people's priorities. So, I think what they want us t...