Interest Rates UK Today: Lenders cut mortgage rates as banks rushed to act
Jeremy Hunt is urging families to balance their books as the bank hikes interest rates
Several major banks have cut mortgage rates after Bank of England Governor Andrew Bailey told lenders that costs “need not rise the way they have done”.
Despite the bank announcing the biggest hike in interest rates in 33 years, lending giant Halifax said it will cut several mortgage rates by as much as 0.24 percent starting next week, with rates now starting below the 6 percent threshold.
Clydesdale Bank, a unit of Virgin Money, has also cut interest rates on its two- and five-year mortgages by up to 0.3 percentage points, which will push some rates down to 5.44 percent. A number of smaller lenders have also lowered rates.
MoneySavingExpert founder Martin Lewis warned that mortgage holders could face a £500 shock as a result of the rise in interest rates and implored policymakers to look for ways to “repair the damage” from the cost of living crisis and recessionary shocks those most vulnerable to mitigate them.
Hello, we are closing the live blog for tonight, thanks for following us.
Andy GregoryNovember 4, 2022 10:07 p.m
Welcome to that of the independent blog about the cost of living crisis for Friday 4th November 2022 where we provide the latest updates on the economic situation in the UK in light of the Bank of England interest rate hike.
Namita SinghNov 4, 2022 3:47 am
Jeremy Hunt ‘considers capital gains surge’ to bridge £50bn abyss
Chancellor Jeremy Hunt is considering raising taxes on the sale of assets like shares and property as he weighs “difficult decisions” to fix a £50billion black hole in public finances.
He’s also considering raising dividend taxes, which would come as a blow to entrepreneurs.
A source close to Mr Hunt confirmed the tax hikes were being considered but said no decisions had been made – stressing that “we are two weeks away from the much-anticipated autumn budget”.
my colleague Andy Gregory Reports:
Namita SinghNov 4, 2022 4:07 am
Britain faces ‘persistent pain’ as recession could last into 2024, bank says
The bank hiked interest rates 0.75 percent to 3 percent on Thursday, leaving homeowners with the biggest single shock to their mortgage bills in more than three decades.
Founder of Money Saving Expert martin lewis states that variable rate mortgage holders can expect an additional £480 a year for every £100,000 of their loan.
Read the details in this joint report Andrew Woodcock and Thomas Kingsley:
Namita SinghNovember 4, 2022 4:32 am
Customer frequency is faltering in the face of rising prices and tighter wallets
Visitor numbers stumbled on their slow return to pre-pandemic levels as rising prices and tightening wallets meant fewer consumers went to stores, figures show.
Total visitor numbers in the UK fell 11.8 per cent from October three years ago – a comparison to iron out pandemic discrepancies – two percentage points worse than September, according to data British Retail Consortium (BRC)-Sensormatic IQ data.
High Street footfall fell by 11.6 per cent, although this was 0.3 percentage points better than last month and an improvement on the three-month average fall of 11.9 per cent.
Read the details in this report:
Namita SinghNov 4, 2022 4:49 am
The pound falls after the Bank of England hiked interest rates
Sterling fell 1.4 percent against the US dollar to 1.123 and 0.8 percent against the euro to 1.15.
Namita SinghNovember 4, 2022 5:10 am
Rates: Starmer warns of ‘Tory premium on mortgages’
Labor leader Sir Keir Starmer said families are now facing “a Tory premium on mortgages”, with the bank’s 0.75 point rise in the base rate to 3 per cent likely to be passed on in the form of more expensive home loans.
As chancellor Jeremy Hunt gave another signal of impending austerity measures in this month’s fall statement, there were warnings from business community not to repeat the mistakes of the early 2010s and cut government investment.
Our political editor Andrew Woodcock has more:
Namita SinghNovember 4, 2022 5:30 am
Expand free school meals to combat ‘devastating’ impact on cost of living, health experts urge
The availability of free school meals Universal credit must be extended to all children in households to combat the “devastating effects” of the cost-of-living crisis, ministers have been told.
More than 35 health leaders and charities have written to Chancellor Jeremy Hunt and Education Secretary Gillian Keegan calling for an “urgent” expansion of the free school lunch program to “improve children’s nutrition and protect their health.”
Namita SinghNovember 4, 2022 5:50 am
Editorial: The consequences of a rate hike will be huge for the weak
Namita SinghNovember 4, 2022 6:10 am
ICYMI: UN envoy warns Sunak of ‘disturbing’ austerity measures
Olivier de Schutter, the UN rapporteur on extreme poverty, said he was “extremely concerned” at the prospect of public spending cuts – as the prime minister tries to balance the books after the disastrous mini-budget.
Mr Sunak is believed to be considering a 50-50 split of spending cuts and tax hikes for the November 17 budget as he and the Chancellor Jeremy Hunt address a black hole of up to £50bn.
my colleague adam woods has more:
Namita SinghNov 4, 2022 6:30 am