Cost of Living - Latest: 778 mortgage deals closed in one week (2023)

Key points
  • Hundreds of home mortgage offers have been withdrawn as interest rate projections have increased
  • Offers of mortgage loans bought for rent are also disappearing
  • An expert gives advice for those who are worried about their mortgage
  • Lurpak gains slack after reducing butter block size
  • A "dummy" coffee is a "grim" symptom of the cost of living crisis
  • Who profits from rising food prices?
  • Your dilemmas:I'm paying off my dad's mortgage, how do I formally add me?
  • Budgeting we have:Savings for your children|Do food subscriptions save you money?|vacation money|The best broadband deals


Amazon UK will only offer fixed-term contracts to parents

Amazon UK has announced that it will offer some workers who work in its warehouses the option to work only during term time in an effort to resolve an ongoing pay dispute with the GMB union.

The offer will apply to parents, grandparents or guardians.

The new contracts will provide six weeks of vacation over the summer and two weeks over the Easter and Christmas holidays, granting eligible employees full-time benefits.

The internet giant hopes the move will bring more people into the workforce, following the recent introduction of a part-time contract with flexible shift options.


An expert gives advice to those worried about not being able to pay off their mortgage

As we've been discussing all day, mortgage rates, which have fallen steadily this year, are now rising again amid expectations that the Bank of England rate could hit 5.5% in November.

HereDavid Hollingworth, Deputy Director of Mortgages,one of the UK's leading mortgage brokers provides advice to those concerned about rising mortgage costs.

1) Check your rate

“The recent hike in the prime rate and the possibility that more will follow has pushed some fixed rates up, but borrowers can lock in the rate well before the end of their current deal with most brokerage offerings. lenders valid up to six months.

2) Extend the mortgage repayment period

“This is not a decision to be taken lightly, as there are costs associated with extending the loan period. However, it can be a useful measure to manage short-term budgets to help cover the higher costs that come with not only higher mortgage rates, but also total living costs."

3) Consider only interest

“The interest alone may seem attractive for lowering your monthly payment, but having a payment plan is also important. Lowering your payments comes at the cost of gradually reducing your mortgage amount over time, and getting back on your payments can become more difficult over time.

4) Paid holidays

“Paid holidays can be a useful short-term remedy for a difficult period that should end in the foreseeable future. For example, when you have a new job secured but you haven't started it yet. Remember, the interest will add to the mortgage, so there are costs in the long run."

5) Check other debts

“Mortgage debt consolidation can dramatically lower your interest rate and cut expenses, but you should approach it with caution. This can turn short-term debt into a long-term liability that may end up costing you more.”

6) Talk to your lender

“Lenders will want to consider solutions they could put in place to prevent borrowers from getting into more trouble. Debt charities will also be able to help inform you on how best to proceed and get back on track rather than getting into deeper trouble. ".


More than 400 buy-to-let transactions were closed last week

This morning we informed you that last week 373 home loan agreements were withdrawn due to fears of further interest rate hikes. Now we have the same numbers from the buy-to-let market, and they are even sharper.

At least 405 buy-to-rent mortgage deals were withdrawn from the market last weekmoney facts.

Since last Monday, the number of available offers has fallen from 2,748 to 2,343.

At the same time, the average rate on a two-year and five-year fixed offer increased from early May to 5.61% and 5.52%, he added.

Precise Mortgages, Kensington, Kent Reliance, Hodge and Marsden Building Society have recalled selected stationary mortgage products in recent days.

Aldermore, Bank of Ireland UK, CHL Mortgages, Fleet Mortgages, Foundation Home Loans and The Mortgage Lender are available worldwide.

Rachel Springall, financial expert at Moneyfacts, said:

“Homeowners will be disappointed. Volatility around interest rates started to improve in late 2022, but as it stands now, average rates are expected to continue to rise due to continued concerns about future interest rate hikes.

"The selection of rental products fell below 1,000 listings last October, following the fiscal announcement, so it will be a worrying echo of that period if selection falls this low again."


Asda to buy service station giant: Here's what it could mean for fuel prices

Asda's owners are set to buy British and Irish service station operator EG Group for £2.27bn.

The move means the UK's third-largest supermarket will take over 350 service stations and more than 1,000 takeaways.

It could also mean good news for motorists, as Asda's co-owner says it will bring the company's "highly competitive fuel offering" to more customers.

Asda offers petrol and diesel at some of the lowest prices in the market.

Still, the GMB union expressed concerns that the linkage could raise fuel prices and threaten food supplies.

"This merger is bad on so many levels: it's bad for consumers and will drive up food prices, it's bad for drivers, it has a chilling effect on fuel prices, it's bad for Asda employees and it's bad for business. Nadine. Houghton, GMB national officer.

Here are the latest fuel prices:


Summary: Three main stories from our business side

As we continue to bring you the latest cost of living updates, why not take a look at some of today's top business stories?

Pubs, bars and restaurants are begging the government to help them pay their energy bills after they have risen by 81% over the last year.

The CBI board has hired lawyers to prepare for a possible bankruptcy filing ahead of a deciding vote by thousands of members next week.

And Mars bars get a new look by trying greener paper packaging instead of plastic.


Lurpak gains slack after reducing butter block size

Lurpak made headlines several times during the cost of living crisis and here we are again.

Shoppers are complaining online after butter brand owner Arla Foods reduced the block size by 20% from 250g to 200g, despite its infamously high price tag.

The cheapest 200g pack of Lurpak lightly salted butter costs £1.90 (95p per 100g), according to analysts, while the cheapest 250g pack was £2.45 (98p a pack).

The company did the same with Anchor butter.

The answer has been...

“Lurpak and Anchor are really making us work for our butter now, aren't they? First they raise the prices, now they reduce the size. What's next, a subscription service?” wrote a Twitter user.

Arla Foods has been recalling its 250g packs since last month.

“We recognize that the cost of living crisis has put pressure on shoppers' affordable spending and we want to make our pricing more accessible to shoppers, which we believe can be achieved by reducing the size of our packages. Danny Micklethwaite, the company's vice president of marketing, told Sky News.

He explained that the price is set by the retailers who stock the products, adding that Arla Foods works "very closely" with them to get the "best possible deal" for customers.


Sainsbury's cuts prices on 40 dairy products

As we said earlier, dairy products such as milk and cheese were among the hardest hit food areas in terms of rising prices, with shoppers paying almost 30% more than a year ago.

Now, in what appears to be positive news for customers, Sainsbury's says it is cutting the prices of more than 40 own-brand dairy products by up to 60%.

Here are some of the offers available:

“As the inflation rate for groceries remains at an all-time high, we want to do everything we can to help our customers manage their budgets and keep the prices of their most-bought items low,” said Rhian Bartlett, commercial food manager at the supermarket. .

From tomorrow, Nectar customers can get additional discounts on a range of branded dairy products, including:

  • Lurpak 500g - normally £5 now £3.75
  • Philadelphia 165g - normally £2.20 now £1
  • Cathedral City Cheese 350g - normally £4.75 now £2.75


Asda chief 'hopes' UK to peak food inflation, says government owes supermarkets 'debt of gratitude'

The Asda chairman said he "hoped" the UK had peaked in food inflation, warning that reports of food price caps were "retrospective".

According to data from the British Retail Consortium, food price inflation in the UK stood at 15.4% in the period to May, slower than April's record pace but still a major driver of the continued headline inflation rate.

Speaking to Sky News, Stuart Rose said food prices in the country would now "see a steady decline" despite the projected rapid decline not happening.

“All retailers are very efficient. In real terms, the cost of food, the cost of clothing, the cost of electronics has all come down over the last 20, 30, 40 years, mostly due to retailer efficiency," he said. .

His comments came after reports surfaced that supermarkets would be encouraged to introduce voluntary price caps on essentials such as milk and bread to help customers cope with the cost of living.

"Governments of all kinds owe us a debt of gratitude, and recent price speculation is, quite frankly, quite retrospective," he said.

"It reminds me of the revenue policy we had in the late 1960s."

Governments use price and income policies to determine the rate of price growth and the rate of wage growth in the economy, and they were used in various ways in the 1960s and 1970s.

The policy has since been largely discredited and abandoned.

Read our full report on the story here...


New savings account 'highest interest rate we've seen in years'

Savers may be attracted to a new two-year fixed contract that has just hit the market with a provider offering a rate of 5.15%.

"This is the highest rate we've seen in years," said MoneySavingExpert.

Investec by Raisinoffers a rate with interest paid at maturity and offers new customers a £25 online savings platform when they save £10,000 or more.

A minimum deposit of £1,000 is required to open an account.

This is when savers are encouraged to switch accounts because they earn "modest" returns despite a rise in the Bank of England's prime interest rate.

In recent months, savers have been sitting at rates as low as 0.1%, despite the Bank's base rate being set at 4.5%, according to which?.

Some account holders may be better off with troubled banks or building societies, especially when it comes to instant access deals, the consumer group said.

Banks take many factors into account when setting interest rates, and the Bank of England base rate is just one of them, a blog post on the UK Finance website explained.

Several providers have recently announced new savings offers, here are some of them...

first directAs of today, he is launching a savings account with a fixed interest rate for one year with an interest rate of 4.60% TAE (Annual Equivalent Rate).

The offer is only available to First Direct customers with a first billing account. The bank is offering £175 cash for switching to a current account, subject to conditions.

ShawbrookIt introduced an annual fixed rate bond with an APR of 5.06% and an annual Isa fixed rate bond with an APR of 4.43%.

trust bank in hampshireoffers a two-year permanent savings account with an interest rate of 5.15% and annual or term interest. Customers need a minimum deposit of £1 to open an account.


Hundreds of mortgage deals have been withdrawn due to interest rate concerns

Currently, there are 373 fewer mortgage offers on the market than at the beginning of last weekmoney factsfinancial information service.

Commodities began to disappear as inflation figures were higher than expected last Wednesday, prompting forecasts that interest rates would rise from 4.75% to 5.5%, expected this fall.

Moneyfacts reports that there were 5,385 offers available last Monday; today the number is 5012.

A selection of deals have been made by these lenders in recent days: Bank of Ireland UK, Bath Building Society, Furness Building Society, Newcastle Building Society, Halifax, Hinckley & Rugby Building Society, Hodge, Kensington, LendInvest, Marsden Building Society, MPowered Mortgages, Principality Building Society, Scottish Building Society and Vernon Building Society have recalled selected fixed rate mortgage products in recent days.

Meanwhile, Aldermore, Foundation Home Loans and Tipton & Coseley Building Society have phased out their entire range of fixed rates.

We are also seeing renewed increases in rates offered on high streets; remember that they are always higher than the bank rate (currently 4.5%) as lenders make long term loans and price what they expect. happen.

The two-year average fixed deal is 5.38% today, down from 5.34% at the start of last week.

For five-year fixed-term contracts, it is now 5.05%, up from 5.01%.

Raquel SpringallMoneyfacts financial expert said:

“Borrowers looking for a new offer may be concerned about the latest developments in the mortgage market. This volatility stems from concerns about future interest rate hikes. It is essential that borrowers seek advice to assess their situation and find a mortgage that suits your situation."


What is the new interest rate today? ›

Current mortgage and refinance interest rates
ProductInterest RateAPR
30-Year Fixed Rate7.17%7.20%
20-Year Fixed Rate6.97%7.00%
15-Year Fixed Rate6.61%6.64%
10-Year Fixed Rate6.74%6.76%
5 more rows

How long will interest rates stay high? ›

'I believe by the end of 2023 we will see rates start to fall with a target of between 2.5 to 3 per cent in 2024. 'I believe if the base rate can get back to circa 2.5 per cent, then we will see rates hovering around that mark with a return to products that have not been seen in the mortgage industry for some time.'

Are interest rates going down? ›

Key points

The Federal Reserve has been raising interest rates to cool inflation. Because inflation is still higher than where the central bank wants it to be, we may not see a reduction in interest rates anytime soon.

How often do interest rates change? ›

How often do interest rates change? Mortgage rates can change daily, sometimes multiple times a day. They're difficult to predict, though they're often influenced by economic changes, world events, and the Federal Reserve (also known as the Fed in the media).


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