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’.
Despite the Bank announcing the biggest interest rate hike in 33 years, credit giant Halifax said it would cut several mortgage rates by as much as 0.24% starting next week, with rates starting now 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%. A number of smaller lenders have also cut their rates.
MoneySavingExpert founder Martin Lewis has warned that mortgage holders could face a £500 shock to their bills due to rising interest rates, imploring policymakers to look for ways to “ mitigate the damage” of the cost of living crisis and recessionary shocks to those most vulnerable to them.
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Andy GregoireNovember 4, 2022 10:07 p.m.
welcome to The Independents cost of living crisis blog from Friday 4th November 2022 where we provide the latest updates on the collapsing economic situation in the UK amid interest rate hikes by the Bank of England.
Namita SingNovember 4, 2022 3:47 a.m.
Jeremy Hunt ‘considers increased capital gains’ to fix £50bn sinkhole
Chancellor Jeremy Hunt is considering raising taxes on the sale of assets such as shares and property as he weighs ‘tough decisions’ to address a £50billion black hole in public finances.
He is also considering a tax increase on dividends, which would be a blow to entrepreneurs.
A source close to Mr Hunt confirmed the tax hikes were being considered but said no decision had yet been made – stressing that ‘we are two weeks away’ from the very autumn budget expected.
My colleague Andy Gregoire reports:
Namita SingNovember 4, 2022 4:07 a.m.
Britain faces ‘prolonged pain’ as Bank says recession could stretch into 2024
The Bank raised interest rates from 0.75% to 3% on Thursday, leaving homeowners with the biggest shock to their mortgage bills in more than three decades.
Money Saving Founder Martin Lewis said variable-rate mortgage holders face an additional £480 a year for every £100,000 of their loan.
Read the details in this joint report from Andre Bécasse and Thomas Kingley:
Namita SingNovember 4, 2022 4:32 a.m.
Attendance stumbles as prices rise and purse strings tighten
Footfall stumbled in its slow return to pre-pandemic levels as rising prices and tighter purse strings caused fewer consumers to visit stores, figures show.
According British Retail Consortium (BRC)-Sensormatic IQ data.
High Street footfall was down 11.6%, although that was 0.3 percentage points better than last month’s rate and an improvement on the three-month average decline of 11.9%.
Read the details in this report:
Namita SingNovember 4, 2022 4:49 a.m.
Pound falls after Bank of England interest rate hike
The pound fell 1.4% to 1.123 against the US dollar and 0.8% against the euro to 1.15.
Namita SingNovember 4, 2022 05:10
Interest rates: Starmer warns of ‘Conservative premium on mortgages’
Labor leader Sir Keir Starmer said families now faced ‘a conservative premium on mortgages’ as the 0.75 point rise to 3% in the Bank’s base rate was likely to be passed on below the form of more expensive home loans.
As Chancellor Jeremy Hunt issued a further signal of austerity measures to come in this month’s autumn statement, companies warned against repeating the mistakes of the early 2010s by cutting public investment.
Our political editor Andre Bécasse see you:
Namita SingNovember 4, 2022 05:30
Expand free school meals to tackle ‘devastating’ cost of living impact, health experts urge
The availability of free school meals must be extended to all children in households with Universal Credit to tackle the ‘devastating impact’ of the cost of living crisis, ministers said.
More than 35 health leaders and charity bosses have written to Chancellor Jeremy Hunt and Education Secretary Gillian Keegan demanding an ‘urgent’ extension of the free school meals scheme to ‘improve nutrition children and protect their health”.
Namita SingNovember 4, 2022 05:50
Editorial: The consequences of rising interest rates will be enormous for the vulnerable
Namita SingNovember 4, 2022 6:10 a.m.
ICYMI: UN envoy warns Sunak of ‘worrying’ austerity cuts
Olivier de Schutter, the UN rapporteur on extreme poverty, said he was “extremely troubled” by the prospect of public spending cuts – as the prime minister seeks to balance the books after the disastrous mini-budget.
Mr Sunak is believed to be eyeing a 50-50 split of spending cuts and tax increases for the November 17 budget, as he and the chancellor Jeremy Hunt tackling a black hole of up to £50 billion.
My colleague Adam Forest see you:
Namita SingNovember 4, 2022 06:30