Nathan Gilbert, of Enfield, changed the account details of customers and fraudulently issued passbooks
A former teller at a London branch of Nationwide has been jailed for more than two years for his part in a £130,000 bank fraud.
Nathan Gilbert, 26, of Enfield, north London, who was said to have abused his position of trust at the bank, pleaded guilty at Southwark crown court to committing fraud and was sentenced earlier this year.
Continue reading...Treasury hints at concessions on guarantee but banks will face fines for falling below minimum service level
High street banks will have to ensure customers can find access to cash within three miles of their local communities, and those falling below the minimum service level will face a fine, the government has confirmed.
After the closure of thousands of local branches in recent years, and the switch to digital payment methods, ministers are looking to banks to help protect vulnerable groups and elderly customers by maintaining present levels of cash access across the UK.
Continue reading...Government-backed NS&I increases its rates, as building societies and banks launch better deals
Amid the mortgage misery, there was more good news this week on savings rates, with a growing number of accounts now paying 6%-plus interest.
Meanwhile, the government-backed NS&I – a favourite of many in these uncertain times – has upped the rates on some of its popular fixed-rate accounts.
Continue reading...Rate is at highest level since last November, and average two-year fix is now 6.47%
A typical five-year fixed mortgage deal in the UK now has an interest rate of more than 6%, putting further pressure on borrowers who are hoping to buy a home or reaching the end of their existing deals.
Data from the financial information firm Moneyfacts shows the cost of a five-year deal for homeowners rose to 6.01% on Tuesday, up from 5.97% on Monday. It is the highest level since last November, after mortgage rates had been driven up by the mini-budget chaos of last autumn.
Continue reading...Financial Conduct Authority to meet executives on Thursday as part of its investigation into savings market
UK bank bosses have been summoned to a meeting with the financial watchdog this week amid mounting concerns that they are profiting from rising interest rates by offering paltry savings rates to customers.
Executives from the big high street names Lloyds Banking Group, NatWest, HSBC and Barclays, as well as from smaller lenders, are due to attend a meeting at the Financial Conduct Authority (FCA) on Thursday to discuss concerns that savings rates are lagging far behind the soaring costs of mortgages and loans.
Continue reading...Anguished families talk about how the Bank of England’s 13th consecutive interest hike is affecting them – and their fears for the future
Liam, 36, a senior IT manager and married father-of-one from Newcastle upon Tyne, is one of millions of homeowners whose mortgage payments will rise even higher after the Bank of England on Thursday put up the base interest rate to 5% – a 15-year high.
Together with his husband, Liam bought his four-bedroom house in 2019 for £269k, and the couple’s three-year mortgage deal, refixed at 1.64% in 2020 just before the first lockdown, expired in March.
Continue reading...Rises of up to 0.75 percentage points follow increases at First Direct
Customers of HSBC will receive a boost to their savings after the bank announced an increase to interest rates, as Britons enjoy some of the highest rates in more than a decade.
The lender is increasing rates on some of its savings accounts, with increases of up to 0.75 percentage points.
Continue reading...Lenders forced to raise fixed-term deals after latest inflation figure pushed swap rates upwards
Households looking for a new mortgage deal have been warned to expect 5%-plus fixed-rate deals in the coming weeks, after Wednesday’s inflation figures sent the money markets back into turmoil.
Nick Mendes, the mortgage technical manager at the broker John Charcol, said on Thursday that he doubts that there will be any two-year fixed-rate mortgages and probably few five-year deals priced at less than 5% in the coming weeks, as lenders are forced to reprice their mortgages upwards.
Continue reading...Skipton building society aims product at renters who cannot save enough for a deposit
A leading lender plans to launch a 100% mortgage aimed at would-be first-time buyers who cannot save for a deposit, the first since the 2008 financial crisis.
Standard home loans where the borrower does not have to put down a deposit used to be fairly commonplace but the last was axed in the wake of the financial crisis.
Average monthly cost of owning 3-bed home is £500 a year less than renting, but the gap is narrowing
Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax.
The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more.
Continue reading...February figures from BRC highlight impact of cost of living crisis on British economy before budget
UK consumers sharply cut back their spending in February as soaring living costs damaged household finances, retailers have warned, despite strong sales of jewellery and fragrances for Valentine’s Day.
Highlighting the impact of the cost of living crisis on the economy before Jeremy Hunt’s budget next week, the British Retail Consortium (BRC) said sky-high energy bills and the rising cost of a weekly shop were forcing shoppers to cut back.
Continue reading...Chief executive Charlie Nunn could receive £9.1m payout, while top performing bankers to share £446m bonus pot for work in 2022
Lloyds Banking Group has been accused of “stuffing the pockets of already overpaid bankers” after proposing increases for top bosses that could result in a £9.1m payout for its chief executive, Charlie Nunn.
The bank revealed on Wednesday that staff would share a £446m bonus pot – the highest in four years – for their work in 2022, despite reporting flat annual profits, after an increase in the money put aside for a potential jump in defaults.
Continue reading...Full list of site closures, which will start in April and carry on through into June this year
Lloyds and Halifax have become the latest high street banks to announce a series of branch closures across England and Wales.
Lloyds Banking Group, which owns both banks, is to close 18 Halifax sites and 22 Lloyds branches, starting in April and through into June this year.
Continue reading...Quarter of consumers more likely to visit branches amid struggles with surging energy, food and housing costs, finds KPMG survey
Cost of living pressures have increased the number of customers relying on bank branches to help manage their squeezed budgets, research shows.
While the Covid-19 pandemic accelerated the adoption of online-only banking, particularly during lockdowns, research from the accountancy firm KPMG showed a quarter of UK consumers were more likely to visit bank branches now that households were grappling with surging energy, food and housing costs.
Continue reading...FCA penalises bank after millions of customers were locked out of their accounts for weeks
City regulators have fined TSB £48m for “widespread and serious” failings related to the IT meltdown in 2018 that left millions of banking customers locked out of their accounts for weeks.
The long-awaited fine is expected to draw a line under the scandal, which tarnished the challenger bank’s reputation and forced its chief executive to step down within months of the botched move to a new IT platform.
Continue reading...Increase adds up to a £26bn rise for homeowners, says Resolution Foundation thinktank
More than five million families could see their annual mortgage payments rise by an average of £5,100 between now and the end of 2024, heaping fresh pain on households already struggling with higher food and energy bills.
The increase adds up to a £26bn mortgage rise for homeowners, according to the analysis by the Resolution Foundation thinktank which said nearly a fifth of British households would have to spend more on their housing costs by the end of 2024.
Continue reading...RICS report says rise in repossessions will add to supply while soaring interest rates price buyers out of market
Homeowners will struggle to make mortgage repayments and repossessions will rise next year as soaring interest rates and falling prices mark the end of the UK’s 13-year housing market boom, according to a sobering report from the Royal Institution of Chartered Surveyors (RICS).
The number of inquiries from potential homebuyers fell for a fifth month in a row in September, while sales fell to the lowest level since May 2020 when the housing market all but ground to a halt during the early stages of the coronavirus pandemic, it said.
Continue reading...Initiative may continue beyond December as bank bosses raise concerns over mortgage market
The chancellor is considering extending the government’s mortgage guarantee scheme after UK bank bosses raised concerns over the state of the UK’s mortgage market at a high-level meeting at No 11 Downing Street.
The meeting on Thursday – which was attended by chief executives including Alison Rose of NatWest, Charlie Nunn of Lloyds Banking Group, HSBC UK’s Ian Stuart, Mike Regnier of Santander and TSB’s Robin Bulloch – was scheduled amid mounting fears about the potential fallout from rapidly rising mortgage rates.
Continue reading...This week’s decision could pit Bank of England governor Andrew Bailey against an expansionary PM and chancellor
A lightning strike from the Bank of England awaits. Having delayed its decision until after the period of national mourning for the death of the Queen, Threadneedle Street could this week launch the biggest rise in borrowing costs for at least 25 years.
Announcing its plans a day before Kwasi Kwarteng’s mini-budget on Friday, the central bank is widely expected to use a fast and forceful rate increase to show its commitment to tackling soaring borrowing costs – despite the gathering storm clouds for the British economy.
Continue reading...Additional 13 hubs will bring total to 25, where customers of almost any bank can carry out transactions
More shared “banking hubs” are to be rolled out across the UK to help communities hit by branch and ATM closures to get continued access to cash.
A banking hub is a shared service that operates in a similar way to a standard branch, with a counter service run by Post Office staff where customers of almost any bank can withdraw and deposit cash, make bill payments and carry out regular transactions.
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