Interest rates UK – latest: Lenders cut mortgage rates as banks urged to take action
Halifax and Virgin Money were among the first to announce mortgage rate reductions
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Several high street banks have slashed mortgage rates after Bank of England governor Andrew Bailey told lenders that costs did “not need to rise as they have done”.
Despite the Bank announcing the largest jump in interest rates in 33 years, lending giant Halifax said it would reduce several remortgage rates by up to 0.24 per cent from next week, with rates now starting below the 6 per cent threshold.
Clydesdale Bank, an arm of Virgin Money, has also cut rates on its two and five-year mortgages by up to 0.3 percentage points, which will push some rates down to 5.44 per cent. A number of smaller lenders have also cut rates.
MoneySavingExpert founder Martin Lewis warned that mortgage holders could face a £500 shock to their bills as a result of the bump to interest rates, imploring policymakers to look at ways to “mitigate the damage” of the cost of living crisis and recessionary shocks to those most vulnerable to them.
Tesco introduces new 28p car charge at supermarkets across UK
Tesco has introduced a fee of at least 28p for customers to charge their electric vehicles at their car parks.
The supermarket has been Britain’s largest provider of free power for electric car owners since it began rolling out charging bays at its stores in 2018.
With charging points at more than 550 of its UK stores, Tesco claims to have given customers enough electricity to travel some 86 million miles – the equivalent of looping the Earth’s surface nearly three and a half times.
But now those wishing to charge their electric cars while they shop must pay at least 28p per kilowatt hour (kWh) to do so, rising to 40p and 50p for the more powerful – and faster – 22kW and 50kW chargers respectively.
Andy Gregory reports:
Tesco introduces new 28p car charge at supermarkets across UK
Supermarket says its new tariffs are ‘some of the most competitive rates in the market’
Martin Lewis reveals how much mortgages will rise after interest rate hike
Mortgage holders will see their yearly costs increase by more than £400 after the Bank of England hiked interest rates to 3 per cent, Martin Lewis has said.
The Money Saving Expert said tracker deals will rise by roughly £40 per month (£480/year) for every £100,000 worth of mortgage.
That means someone with a £300,000 mortgage will pay £1,440 extra per year. “Existing fixes won’t change, but when they end new deals will be far costlier,” Mr Lewis said.
My colleague Matt Mathers reports:
Martin Lewis reacts to UK interest rates announcement
Bank hikes rates for eighth consecutive time putting futher squeeze on cost of living crisis
It never feels good to raise interest rates, says Andrew Bailey
It never feels good to raise interest rates, the Bank of England governor has said, but considers the pain is necessary to spare the UK from larger and more damaging action further down the line.
“If we don’t bring inflation back down to target and if we leave it at a point where we don’t have price stability, the situation gets much worse,” Andrew Bailey told Sky News.
“The economy becomes more unstable, we would have much bigger fluctuations in output, in think we would have much bigger job losses.
“And at the end of the day, I’m afraid the action if we get in that situation that we have to be taken thereafter to restore stability would be much larger and much more damaging. So, its critical that we take the action.”
Asked if the pain was necessary to prevent something worse, Mr Bailey replied: “Yes.
Asked how it feels to inflict that on people, he said: “It never feels good, I don’t think anyone should think that central bankers are feel good doing this. But it is our job.”
Tory minister expects critical services will be protected in autumn statement
A Tory minister has said he expects “critical services will be protected” in the autumn statement amid warnings that any return to austerity would be a “gift to those who support children.”
It comes as a report by the Commission for Young Lives warned that systems to protect young people are “not fit for purpose.”
Asked if the necessary budgets will be protected in the upcoming spending review, policing minister Chris Philip said: “Well, obviously, we will need to wait and see what the chancellor says on 17 November.
“But I would expect, as the chancellor makes his decision in the coming weeks, the critical services will get protected.
Mr Philip assured the broadcaster that it would “certainly be a case I would be making,” but adds that we will have to wait to see what the Jeremy Hunt has decided in a couple of weeks time.
Northern Powerhouse Rail spending to be scaled back?
Spending commitments such as Northern Powerhouse Rail are likely to be scaled back, business Secretary Grant Shapps has hinted.
He told the BBC: “The line itself can deliver a 33-minute journey from Manchester to Leeds, quadruple nearly the capacity of that line, and do so without having to wait an extra 20 years beyond the delivery of what the upgrade can do.
“There wasn’t really much point in going and blasting new tunnels through the Pennines.
“It’s not true to say we’re not delivering on what we said we would do on levelling up the north.”
Watch: Jeremy Hunt calls on families to 'balance books' as Bank hikes interest rates
Philip blames Truss for mini-budget chaos
Policing minister Chris Philip has heaped maximum blame on Liz Truss for the fallout from the mini-budget rather than former chancellor Kwasi Kwarteng.
Mr Philp, who was chief secretary to the Treasury under Ms Truss and Mr Kwarteng at the time, told BBC Breakfast: “The decisions around the mini-budget were taken principally by the then-prime minister and to a lesser extent the then-chancellor.”
He declined to apologise for his own role.
Martin Lewis warns cost of living crisis will hit people harder in spring than winter
Martin Lewis has shared fears the cost of living crisis will hit people harder in spring than this winter.
The MoneySavingExpert founder said he is worried about April when support on energy bills ends and interest rates could be “at their peak”.
The UK was hit with more bleak economic news on Thursday when the Bank of England said the country was heading for its longest recession in at least a century.
Zoe Tidman has this breaking story:
Martin Lewis warns cost of living crisis will hit people harder in spring than winter
Interest rates are now 3 per cent - the highest level since 2008 - in a bid to tackle soaring inflation
Carney blames interest rate hike on Brexit
Former central Bank governor Mark Carney has said Brexit was a key reason for the raising of interest rates.
Mr Carney, who warned many times in the lead up to the 2016 referendum that the UK’s departure from the EU was expected to negatively influence the economy, told BBC Radio 4’s Today programme that the vote had devalued sterling, and hit growth and productivity.
Sinn Fein hits out at imposition of ‘Tory chaos’ after interest rate rise
Sinn Fein MLA John O’Dowd said a decision over a fresh Stormont election should have been taken a week ago after the hike in interest rates posed a “classic example of Tory chaos being imposed upon the people”.
“Now we have no executive, no election, no budget, no ministers, and people facing a deepening economic crisis, particularly in light of yesterday’s announcement from the Bank of England that interest rates are going to rise,” he told BBC Radio Ulster.
“So this is a classic example of Tory chaos being imposed upon the people.”
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