Likelihood of winning to decrease after NS&I cut the proportion of the total invested amount paid out in prizes
There was some bad news this week for Britain’s 22 million-strong army of premium bond holders: the odds of winning a prize are to get worse.
National Savings and Investments (NS&I) says it is cutting the proportion of the total invested amount paid out in prizes from 3.6% to 3.3% a year with effect from April’s draw.
Continue reading...Building societies fear consumers will be put off from saving if chancellor’s budget announces a 40% reduction
Rachel Reeves’s plan to slash the annual cash Isa limit by 40% could lead to higher mortgage rates and deter consumers from saving, finance bosses have said.
The chancellor is expected to cut the maximum amount people can put into tax-efficient cash individual savings accounts from £20,000 a year to £12,000 in Wednesday’s budget.
Continue reading...Treasury committee says move in November budget could push up mortgage rates instead
Cutting the annual cash Isa allowance will not encourage many savers to switch to shares but could push up mortgage costs, MPs have warned the chancellor.
Adults can put up to £20,000 a year in a tax-free Isa and spread the money between cash and stock market investments as they choose. In the 2023-24 tax year, 66% of all contributions went into cash savings.
Continue reading...Newcastle building society aims for those with smaller deposits and no help hoping to get on to housing ladder
First-time buyers are being offered the chance to borrow up to 98% of the price of a property – but they cannot get help with their deposit from the bank of mum and dad.
Newcastle building society’s First Step mortgage is designed to help those who have been saving to get on the housing ladder.
Continue reading...Some higher-earning couples with smaller deposits could borrow extra £130,000 as a result of overnight changes
Some couples applying for a Santander mortgage will see the maximum they can borrow increase by £130,000 overnight after the bank loosened its lending rules.
Santander is the latest in a line of lenders to allow some borrowers to access bigger mortgages after intervention by the City regulator and new guidelines from the Bank of England designed to help more people on to the housing ladder.
Continue reading...Lender says Debbie Crosbie’s package ‘should compete with banks’ but critics say building societies are ‘supposed to be the good guys’
Nationwide is under fire for refusing to give members a binding vote on a controversial 43% pay rise for its chief executive, Debbie Crosbie, which could total up to £7m.
Campaigners say it leaves the mutual’s members with fewer rights than shareholders of listed UK banks and exposes a worrying “loophole” in building society rules.
Continue reading...Digital bank hopes to tempt switchers with package including in-credit interest and fee-free travel spending
The battle for bank customers intensified this week, with a new player entering the UK current account market and offering cashback on bills and access to a savings account paying 7.1%.
Digital bank Zopa is hoping the perks – which also include in-credit interest and fee-free spending abroad – will tempt switchers to its first day-to-day account.
Continue reading...Banks say every day 7,000 incidents take place where scammers get people to disclose unique set of numbers
Banks are reporting a surge in a type of fraud where customers are tricked into disclosing online login passcodes they are sent, which has helped to fuel a 22% jump in crimes where scammers go shopping using people’s stolen details.
The banking body UK Finance revealed that “remote purchase” fraud hit its highest-ever level in 2024, with almost 2.6m cases logged, which works out at more than 7,000 incidents a day, or almost five a minute.
Continue reading...Lenders’ routine purging after six years means details of some car buyers due compensation may have been lost
Consumers are at risk of losing £1bn of compensation over inflated car loans because high street banks and specialist lenders deleted their data, claims lawyers have warned.
Borrowers, banks and the government are anxiously awaiting a ruling from the supreme court that could spark one of the biggest redress schemes since the £50bn payment protection insurance (PPI) saga.
Continue reading...The Bank of England has voted to cut the cost of borrowing, reducing the base rate to 4.25%. Here’s what it means for you
The Bank of England has cut interest rates from 4.5% to 4.25%.
It follows two interest rate cuts in the second half of last year, and another one in February this year.
Continue reading...Research shows strong support for keeping tax-free accounts in their current form with £20,000 annual limit
A campaign to “save” cash Isas gathered pace this week, with research published showing strong support for the savings accounts.
However, data was also issued that investment firms said showed UK savers were “paying the price” for playing it safe because putting money into the stock market can generate much higher returns.
Continue reading...Criminals stealing hundreds of pounds by snooping locker codes and using them to access accounts with same pin
Police have urged the public to use different pin codes at the gym after a prolific thief stole hundreds of pounds from a man he snooped on while entering a locker code that he also used for his bank card.
Last September Declan Murphy, 35, secretly watched the victim as he typed in a locker code at a luxury central London gym. After stealing the victim’s phone and bank card from the locker, Murphy then successfully guessed that the four-digit code on the card would be the same as the locker code.
Continue reading...Despite new rules, many lenders have decided to implement the optional exemption
Some victims of bank transfer scams will not get a penny back despite beefed-up rules designed to better protect consumers from fraudsters, because several big banks have introduced an excess on refund claims.
New rules requiring banks and other payment companies to reimburse fraud victims who have been tricked into sending money to scammers took effect last month, and included an optional £100 excess that firms can apply to a claim.
Continue reading...Claims management company expects claims over collapsed Neil Woodford fund to exceed £200m
More than 5,000 people who invested in Neil Woodford’s collapsed equity fund are suing Hargreaves Lansdown, claiming that the investment platform was still promoting the fund even when it was aware of its problems.
The number of people suing Hargreaves Lansdown, the UK’s largest investment site, has almost doubled in the past two years, according to the claims management firm RGL Management. Two years ago the number of people taking part stood at 2,750.
Continue reading...Nationwide says yearly rise in house prices increased by 3.2% in September putting the average home at £266,094
UK house prices are growing at their fastest annual rate for nearly two years as borrowing costs continue to fall on expectations that the Bank of England will keep cutting interest rates, Nationwide has said.
The building society said prices grew by 3.2% in September compared with the same month last year, well above the 2.4% annual growth recorded in August, and the fastest pace since the 4.4% recorded in November 2022.
Continue reading...House prices grew at annual rate of 2.4% in August, the fastest since December 2022, Nationwide figures show
The UK housing market is at its strongest since the aftermath of Liz Truss’s infamous mini-budget that sent borrowing costs soaring, according to the latest figures.
Nationwide said house prices grew at an annual rate of 2.4% in August, up from 2.1% in July and the fastest rate since December 2022.
Continue reading...Starling’s fraud team repeatedly refused to allow UK man to send £12,800 to friend in Austria, then froze account
An Edinburgh academic has accused Starling bank’s fraud team of behaving like officers in a police state after they repeatedly refused to allow him to send a €15,000 (£12,800) payment to a friend in Austria, then froze his account when he complained about their “absurd demands”.
John MacInnes, a professor emeritus of sociology and statistics, says he has been left astonished by his treatment by staff at the challenger bank.
Continue reading...Thirty-three constituencies, including two in London, will not have a single bank branch by the end of the year, says Which?
The number of UK bank branches that have shut their doors for good over the last nine years will pass 6,000 on Friday, and by the end of the year the pace of closures may leave 33 parliamentary constituencies – including two in London – without a single branch.
The tally is being published by the consumer group Which? as it seeks to make the “avalanche” of closures and the “disastrous” impact they can have on local communities an election battleground.
Barnsley East (estimated population: 94,000)
Bolton West (98,000)
Bradford South (106,000)
Bury South (103,000)
Central Suffolk and North Ipswich (102,000)
Chatham and Aylesford (103,000)
Clwyd South (70,000)
Colne Valley (112,000)
Dagenham and Rainham (117,000)
Denton and Reddish (88,000)
Don Valley (99,000)
East Worthing and Shoreham (99,000)
Erith and Thamesmead (117,000)
Glasgow North East (88,000)
Liverpool, West Derby (94,000)
Mid Bedfordshire (121,000)
Mid Derbyshire (83,000)
Newport East (84,000)
North East Derbyshire (92,000)
Nottingham East (98,000)
Penistone and Stocksbridge (89,000)
Plymouth Moor View (94,000)
Reading West (112,000)
Rhondda (68,000)
Sedgefield (85,000)
Sheffield Hallam (85,000)
St Helens North (100,000)
Stone (86,000)
Swansea East (81,000)
Warrington North (95,000)
Wentworth and Dearne (100,000)
Wirral West (68,000)
York Outer (92,000)
Continue reading...Leading US investor pours cash into shares after cut helps allay fears of state intervention
A leading US investor has started pouring cash into NatWest shares after a notable cut in the government’s shareholding helped to allay fears of state intervention in the bailed-out banking group.
Los Angeles-headquartered Capital Group, which is one of the world’s oldest and largest investment firms, with more than £2.5tn under management, has bought more than £110m worth of NatWest shares, days after the government cut its position, pushing the group into the bank’s top 30 shareholder list.
Continue reading...Banks may follow suit after UK weather-related claims on home insurance reach new high
Britain’s biggest building society has stopped granting mortgages on some properties where there is a high risk of flooding but said this affected only “a very limited number” of homes.
Nationwide’s head of property risk, Rob Stevens, said the lender used mapping technology to identify which homes were vulnerable to flooding, and it would decline to grant a mortgage to buy a property it deemed to be at high risk.
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