Interest rates

UK interest rates today: Lenders slash mortgage rates as banks are told to act

Jeremy Hunt calls on families to ‘balance their books’ as Bank raises interest rates

Several high street banks slashed mortgage rates after Bank of England Governor Andrew Bailey told lenders that costs ‘don’t need to rise like they have’.

Along with a handful of smaller lenders, Halifax and Virgin Money were among the first to announce mortgage rate cuts on Friday, despite the biggest interest rate hike in 33 years.

The Halifax lending giant said it would cut several mortgage rates by up to 0.24% from next week, with rates now starting below the 6% threshold.

Clydesdale Bank, a branch of Virgin Money, has also cut rates on its two- and five-year mortgages by up to 0.3 percentage points, which will lower some rates to 5.44%.

It comes after Martin Lewis warned mortgage holders could face a £500 shock to their bills due to rising interest rates.

Talk to Hello Brittanyhe implored policymakers to look for ways to “mitigate the damage” of the cost of living crisis and recessionary shocks for those who are most vulnerable to them.

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Senior Bank of England official stresses importance of tackling inflation

Bank of England officials continued to stress the importance of bringing inflation down today, following yesterday’s interest rate hike.

“Our target is ultimately not the real economy. Our goal necessarily, because we conduct monetary policy, is to contain inflation,” the Bank’s chief economist, Huw Pill, told CNBC.

“[The] We expect the slowing economy is necessary to contain domestic inflationary pressures to achieve our goals,” he added.

Andy GregoireNovember 4, 2022 5:00 p.m.

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Interest rates: what are they and how does a rise affect you?

It was the eighth time in a row that the UK’s central bank had raised rates to combat the rise inflationfueled in part by Russia’s war in Ukraine.

At one point last year, the rate was 0.1%. Thursday’s 0.75% rise will have a ripple effect on savers and people who have mortgages on their homes.

Here is Holly Bancroft and Matt Mather with a quick and easy guide to how Thursday’s interest rate change will affect you:

Emily AtkinsonNovember 4, 2022 3:58 p.m.

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House prices fall for the first time since July 2021, data shows

UK house prices have fallen for the first time since July 2021, after Liz Truss and Kwasi Kwarteng’s mini-budget sent markets tumbling, new data shows.

According to Nationwide, the average house price in October was £268,282, down from £3,977 (0.9%) in September.

The bank also noted the biggest drop in prices since June 2020, suggesting the UK is now subject to the expected decline after last month’s financial turmoil.

Robert Gardner, Nationwide’s Chief Economist, said: “The market was undoubtedly affected by the turbulence following the mini-budget, which led to a sharp rise in market interest rates.

“Higher borrowing costs have increased housing affordability at a time when household finances are already under pressure from high inflation.”

The market is expected to slow in the coming quarters. Inflation will remain high for some time to come and [the base rate] is likely to rise further as the Bank of England seeks to secure a slowdown in demand in the economy to relieve domestic price pressures.

Emily AtkinsonNovember 4, 2022 3:29 p.m.

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House Prices: Should I Sell My Home Before Property Values ​​Drop?

Andrew Baileycentral bank governor, says officials had no choice but to raise interest rates by 0.75% to deal with the surge inflationwhich is currently running at 10.1 percent.

This decision will have a ripple effect on savers and anyone wishing to borrow money, as well as on mortgage costs.

Emily AtkinsonNovember 4, 2022 2:55 p.m.

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Lenders cut mortgage rates as banks urged to act

Several high street banks slashed mortgage rates after Bank of England Governor Andrew Bailey told lenders that costs ‘don’t need to rise like they have’.

Along with a handful of smaller lenders, Halifax and Virgin Money were among the first to announce mortgage rate cuts on Friday, despite the biggest interest rate hike in 33 years.

The Halifax lending giant said it would cut several mortgage rates by up to 0.24% from next week, with rates now starting below the 6% threshold.

Clydesdale Bank, a branch of Virgin Money, has also cut rates on its two- and five-year mortgages by up to 0.3 percentage points, which will lower some rates to 5.44%.

Emily AtkinsonNovember 4, 2022 2:29 p.m.

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Millions are worse off if PIP and disability benefits are means-tested

Millions of Britons unable to do without disability benefits could see their support reduced if the government shifts to a means-tested system.

Regardless of income, recipients can currently claim up to £627 as a Personal Independence Payment (SEED) or £369 attendance allowance per month.

Read our full report here:

Emily AtkinsonNovember 4, 2022 2:10 p.m.

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Do Martin Lewis’ Money Saving Tips Really Work? We tried it for three weeks

Not all heroes wear capes; some are just really good at spreadsheets. As the cost of living crisis deepens, Martin Lewis has been hailed a national hero for his advice on how to save money.

But what difference can his advice really make?

Our lifestyle reporters Laura Hampson, Saman Jave and Kate Ng investigated whether the consumer champion’s advice on everything from train tickets to groceries impacted their individual bank balances:

Emily AtkinsonNovember 4, 2022 1:50 p.m.

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Andrew Grice: A two-year recession and the biggest interest rate hike in 30 years – what does this all mean for Labour?

Markets have traditionally been more worried about labor than conservatives, writes Andre Grice.

Emily AtkinsonNovember 4, 2022 1:25 p.m.

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No 10 says he is committed to the integrated rail plan

Downing Street has said it is committed to the integrated rail plan, but Transport Secretary Mark Harper is examining how high-speed services are delivered.

The Prime Minister’s official spokesperson said: ‘We are committed to the integrated rail plan which delivers a high-speed line and transport improvements in the north, and the government believes this approach will deliver these benefits sooner. than under other plans.

“There are a number of options for how we provide these high-speed services in Leeds, for example, and the Transport Secretary is looking at them closely.”

Emily AtkinsonNovember 4, 2022 12:59 p.m.

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Watch: Boris Johnson vows to apologize if Brexit causes recession in resurfaced clip

Boris Johnson vows to apologize if Brexit causes recession in resurfaced clip

Emily AtkinsonNovember 4, 2022 12:27 p.m.