MORTGAGE deals saw their highest ever daily fall after the pound slumped & major lenders pulled hundreds of deals from the market.
Major high street banks and building societies, including Halifax, Virgin Money and Skipton Building Society pulled fixed deals for new customers yesterday after Sterling hit a record low against the dollar.
And according to new data from Moneyfacts, records suggest a huge drop of 935 residential mortgage products available to buyers last night, adding on its website: “This is the highest fall on Moneyfacts records (daily).”
This sharp decline is more than double the previous record of 462 on 1 April 2020 – which was at the start of the UK’s first Covid lockdown.
Moneyfacts also said that as of this morning (Wednesday, September 28) just 2,661 residential mortgage deals were available on the market
Read our cost of living blog below for the latest updates….
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Another clothes drying hack
Nazia took to TikTok to share her trick, showing a video of clothes hung over her radiator as she wrote: “When drying clothes indoors, keep clothes in bedrooms which face the direction of the sun.”
It’s also important to “open windows to remove moisture”.
People have been taking to social media in their hundreds to share their own money-saving laundry hacks.
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Pressure will be put on the NHS, expert claims
The Cost of Living crisis has experts “worried” about the NHS, the BBC reports.
“We’re worried about people because of the cost of living,” Jillian Evans, head of health intelligence at NHS Grampian said.
“People who are unable to heat their homes, unable to have food at regular times – all of those people will be susceptible to greater illness.
“That will put a strain not just on themselves but on healthcare services. I’m worried about all of those things.”
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UK stocks struggle this morning
Following the criticism from the International Monetary Fund of the government’s mini-budget announcement last week UK stocks have have hit a rough patch.
There was a drop of 2% in the FTSE 100 this morning, dragged down by banking, oil and mining stocks.
Yet there was also a 2.5% decrease in the FTSE 250 this morning.
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UK residential mortgage deals hit with highest ever fall
According to Moneyfacts records the UK residential mortgage deals has seen its highest ever daily fall.
A 935 product drop in residential mortgage availability was recorded on Tuesday evening.
“This is the highest fall on Moneyfacts records (daily),” the firm said.
The previous record from the the start of lockdown of 462 was smashed by yesterdays decrease.
There were 2,661 residential mortgage deals available on the market this morning.
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Tank of petrol price could rise
Following last weeks mini-budget announcement and the interest rates rise, the value of the pound has started to drop.
If the pound reaches parity with the US dollar, the cost of filling up the average tank will rise by £3.
Research by the i has shown how the falling value of the pound will hit driver’s back pockets, even when petrol and diesel prices are down on last week.
Figures published by the Department for Business, Energy and Industrial Strategy show a litre of petrol cost an average of 163.75p on Monday, while diesel was 180.31p per litre.
A weak pound is already adding almost a fiver more to each tank of fuel when filling up at the pumps, according to the AA.
Luke Bosdet, the AA’s fuel price spokesman previously told The Sun how: “The influence of the exchange rate is often overlooked when drivers compare oil price movements with those at the pump.”
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Handy hack for drying clothes
During the cost of living crisis many people are looking for money saving hacks during the difficult period.
TikTok user Ann Russell, who often shares life advice on her page, uploaded a video sharing a cheaper way to dry clothes than using a tumble dryer or the radiators.
She explained: “A fan. Not a fan heater. It blows cold air. It doesn’t cost a great deal of money.
“Leave your windows cracked so the warm moist air that rises will go out and you are good to go.
“It works really well.”
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House prices could ‘easily collapse’
Credit Suisse is warning that house prices could “easily collapse by ten to 15%” if borrowing costs continue to rise.
Andrew Garthwaite at Credit Suisse said: “The 8% decline in sterling since August 1 should add a further 1.3% to near-term inflation.
“On current swap rates, the average mortgage will be 6.3%. House prices could easily fall 10% to 15%.”
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Increase in borrowing costs will have a ‘big impact’
Ray Boulger, senior mortgage technical manager at John Charcol, tells the BBC’s Today programme that the increase in borrowing costs will have a “big impact on the ability of people to buy”.
The mortgage technical manager said he expects to see a significant fall in house prices in the next year.
Boulger adds: “I’m suggesting perhaps around 10% next year. A key factor in house prices is how much people could afford on their monthly mortgage.
“So obviously supply and demand is always an issue. But the bigger issue on a sort of grander basis is how much can people afford.”
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Recap: What you need to know about last week’s ‘mini budget’
Last week, the Chancellor announced some serious changes to the British economy.
Aside from a u-turn on the government’s planned National Insurance increase, an Income Tax reduction was also confirmed.
Here are the other changes you need to know about:
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How will the plummeting pound affect your savings?
The pound hit its lowest point ever this week, but what does that mean for your savings?
Simply put, the weaker the pound, the more you might find your spending money doesn’t stretch as far.
Romi Savova, chief executive of retirement platform PensionBee and part of The Sun’s Squeeze Team, said: “With the pound’s current economic position, those who are currently withdrawing from their pension may see reduced purchasing power.”
However, it is important to note that saving is a marathon, not a sprint, while the pound might be low now, it could shoot up in the future.
Click here to read more.
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30 ways to save cash during the cost of living crisis
Every little change can help when bills are rising the way they are.
Here is a list of ways Brits have been saving money during the cost of living crisis.
- Turn the heating down
- Making sure lights are always turned off
- Buy own brand products at the supermarket
- Take lunch into work
- Turn off all electrics when not using/out of the home
- Wear a jumper instead of turning on the heating
- Save leftovers for another meal
- Using discount vouchers
- Use a clothesline instead of a tumble dryer
- Collect coupons and money off vouchers
- Buy second class stamps instead of first
- Buy eco-friendly/energy saving bulbs
- Cut down going out
- Shop in budget supermarkets
- Wait for the sales when making purchases
- Buy food and toiletries in bulk
- Turning off all the plugs before leaving the house
- Haggle my home/car insurance
- Price compare at different grocery stores
- Borrow books from your library
- Shop at second hand/charity stores
- Using public transport instead of taxis
- Cut your own hair
- Spend your weekend taking part in free activities
- Go to supermarkets in the evening for yellow sticker deals
- Grow your own vegetables and herbs
- Drink water when eating in restaurants
- Using an older or hand-me-down phone rather than buying the newest model
- Reduce your television/internet packages to the bare minimum
- Selling anything you possibly can on an online marketplace
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Rising interest rates could be ‘disastrous’ for Brits, expert claims
If interest rates reach 6%, which many have predicted they will, Brits with mortgages could see prices increase by £7,300 A YEAR.
Karen Noye, mortgage expert of Quilter, said: “Rates of 6% could prove disastrous for the property market as people simply won’t be able to afford their mortgage payments if they have overstretched themselves.
“This could cause a wave of properties come to market just when demand is drying up.
“House prices will naturally come down if this happens.”
Click here to read more.
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Morrisons slashes prices in a bid to help struggling Brits
Supermarket chain Morrisons has unveiled a slew of price cuts, as it looks to aid Brits during the cost of living crisis.
David Potts, chief executive, Morrisons said: “The cost of living crisis continues to place an enormous financial burden on our customers and we want to play our part in helping them when it comes to the cost of grocery shopping.
“These price cuts are on the products they buy day in and day out and will have a noticeable impact on their budgets and demonstrate our commitment to offering the best possible value.”
Click here to read more.
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Remember to keep your devices unplugged
Brits can make big savings simply by unplugging their unused appliances, according to British Gas engineer Joanna Flowers.
Joanna said: “You can save around £55 a year just by remembering to unplug them.”
On top of this, the Sun reports you could save £23.10 a year if you switched off your set-top box at the wall when it’s not in use.
Click here to read more.
-
Be sure to turn off ‘vampire appliances’
So-called “vampire appliances” drain energy when left on standby or when used inefficiently – such as a TV and extra fridges.
Desktop computers and electric towel rails are among some of the worst offenders – they could be adding up to £500 onto your yearly costs.
Turn them off correctly – by switching them off at the plug and NOT via the standby button – to avoid a big bill sting.
-
Recap: What you need to know about last week’s ‘mini budget’
Last week, the Chancellor announced some serious changes to the British economy.
Aside from a u-turn on the government’s planned National Insurance increase, an Income Tax reduction was also confirmed.
Here are the other changes you need to know about:
-
Cost to fill up your car could skyrocket if the pound continues to plummet
The cost of filling up your car could see an extra £3 increase per tank if the pound reaches parity with the dollar.
According to AA, the exchange rate is crucial when fuel prices are calculated.
Luke Bosdet, the AA’s fuel price spokesman previously told The Sun how: “The influence of the exchange rate is often overlooked when drivers compare oil price movements with those at the pump.”
The pound reached its lowest point in history this week, as the market panics following the Chancellor’s “mini budget” announcement last Friday.
Click here for more details.
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Are air fryers more energy efficient than ovens?
You will have seen air fryers all over the internet by now, they have taken the culinary world by storm.
The small appliances aren’t actually fryers, but they have been heralded for not pre-heating and switching themselves off.
A typical air fryer uses 1500W of energy per hour.
They typically can hold up to six portions of food.
The Express held a comparison between the two and found that for the same meal it cost:
- The air fryer cost 20p to use for 15 minutes
- An oven costs 42p to use for 41 minutes (11 minutes heating up, 30 minutes to cook)
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Banks pull mortgage offers as the pound plummets
Halifax, Virgin Money and Skipton Building Society have pulled fixed deals for new customers, following the pound plummeting to its lowest point in history yesterday.
This drop led the Bank of England to say it “won’t hesitate to change interest rates”.
Now, banks and building societies are pulling fixed-rate mortgages for Brits looking to buy houses.
Click here for more information.
-
How will the plummeting pound affect your savings?
The pound hit its lowest point ever this week, but what does that mean for your savings?
Simply put, the weaker the pound, the more you might find your spending money doesn’t stretch as far.
Romi Savova, chief executive of retirement platform PensionBee and part of The Sun’s Squeeze Team, said: “With the pound’s current economic position, those who are currently withdrawing from their pension may see reduced purchasing power.”
However, it is important to note that saving is a marathon, not a sprint, while the pound might be low now, it could shoot up in the future.
Click here to read more.
-
30 ways to save cash during the cost of living crisis
Every little change can help when bills are rising the way they are.
Here is a list of ways Brits have been saving money during the cost of living crisis.
- Turn the heating down
- Making sure lights are always turned off
- Buy own brand products at the supermarket
- Take lunch into work
- Turn off all electrics when not using/out of the home
- Wear a jumper instead of turning on the heating
- Save leftovers for another meal
- Using discount vouchers
- Use a clothesline instead of a tumble dryer
- Collect coupons and money off vouchers
- Buy second class stamps instead of first
- Buy eco-friendly/energy saving bulbs
- Cut down going out
- Shop in budget supermarkets
- Wait for the sales when making purchases
- Buy food and toiletries in bulk
- Turning off all the plugs before leaving the house
- Haggle my home/car insurance
- Price compare at different grocery stores
- Borrow books from your library
- Shop at second hand/charity stores
- Using public transport instead of taxis
- Cut your own hair
- Spend your weekend taking part in free activities
- Go to supermarkets in the evening for yellow sticker deals
- Grow your own vegetables and herbs
- Drink water when eating in restaurants
- Using an older or hand-me-down phone rather than buying the newest model
- Reduce your television/internet packages to the bare minimum
- Selling anything you possibly can on an online marketplace
-
Rising interest rates could be ‘disastrous’ for Brits, expert claims
If interest rates reach 6%, which many have predicted they will, Brits with mortgages could see prices increase by £7,300 A YEAR.
Karen Noye, mortgage expert of Quilter, said: “Rates of 6% could prove disastrous for the property market as people simply won’t be able to afford their mortgage payments if they have overstretched themselves.
“This could cause a wave of properties come to market just when demand is drying up.
“House prices will naturally come down if this happens.”
Click here to read more.
-
Morrisons slashes prices in a bid to help struggling Brits
Supermarket chain Morrisons has unveiled a slew of price cuts, as it looks to aid Brits during the cost of living crisis.
David Potts, chief executive, Morrisons said: “The cost of living crisis continues to place an enormous financial burden on our customers and we want to play our part in helping them when it comes to the cost of grocery shopping.
“These price cuts are on the products they buy day in and day out and will have a noticeable impact on their budgets and demonstrate our commitment to offering the best possible value.”
Click here to read more.
-
Remember to keep your devices unplugged
Brits can make big savings simply by unplugging their unused appliances, according to British Gas engineer, Joanna Flowers.
Joanna said: “You can save around £55 a year just by remembering to unplug them.”
On top of this, the Sun reports you could save £23.10 a year if you switched off your set-top box at the wall when it’s not in use.
Click here to read more.
-
Be sure to turn off ‘vampire appliances’
So-called “vampire appliances” drain energy when left on standby or when used inefficiently – such as a TV and extra fridges.
Desktop computers and electric towel rails are among some of the worst offenders – they could be adding up to £500 onto your yearly costs.
Turn them off correctly – by switching them off at the plug and NOT via the standby button – to avoid a big bill sting.
