The wettest February on record did not dampen Britons’ appetite for new spring outfits as retail sales boosted the UK economy.

Analysts predicted a 0.3 percent fall in high street spending in February, but official figures show this remained the same.

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It gives experts confidence that Britain has been lifted out of recession. Official GDP figures show that the economy has been driven by retail sales so far this year.

Rob Wood of Pantheon Macroeconomics predicted that retail sales would continue to grow strongly in the first three months of the year, “helping the economy emerge from last year’s recession.”

It comes at a time when data from GfK shows that consumer confidence has turned positive for the first time in more than two years. Household disposable incomes are finally rising as wages rise in tandem with food price inflation energy accounts fall.

Deloitte’s Oliver Vernon-Harcourt said: “Better days are ahead as the short-lived and shallow recession is behind us and inflation is at its lowest level in two years.

“The high street can be hopeful that lower prices will support higher spending and footfall.”

The office Good performance by clothing stores and department stores has offset declining food and fuel sales, according to National Statistics.

Heather Bovill of the ONS said clothing growth was “recovering after recent declines as people invested in new season collections”.

Much of the spending was done online, with a 2.1 percent increase in internet spending in February.

Voda investigated

Vodafone and Three’s £15bn merger threatens to drive up prices for users, competition and competition Markets Authority watchdog has warned.

The regulator is preparing a six-month investigation into the deal, which involves 27 million customers. The companies say it will help them compete with BT and Virgin Media O2.

Aston in Raid

Aston Martin has poached the boss of rival Bentley as its fourth CEO in four years.

An hour after Bentley announced it Adrian Hallmark’s departure “by mutual consent”, Aston Martin welcomed him as its new leader.

Bentley had increased its profits tenfold under Mr. Hallmark.

Good week

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Next boss Lord Simon Wolfson after announcing huge profits and the best prospects for the retailer in seven years.

Bad week

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DFS boss Tim Stacey warned of lower profits as people were reluctant to buy banks.

A NEW starter scheme offers mortgages with an interest rate below 1%.

The Own New’s Rate Reducer mortgage offers buyers of new construction a reduction in mortgage interest when they purchase a home from several major home builders.

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These include Barratt Homes, Barratt London, David Wilson Homes, Persimmon, Taylor Wimpey, Bellway and Berkeley Homes

The scheme, which started in February 2024, gives home buyers access to a very low mortgage interest rate during the initial term of their mortgage.

Own New Rate Reducer works by using incentive budgets that home builders offer to their customers to reduce their monthly mortgage payments over a fixed term.

For example, if the homebuilder offers a 5% incentive on a home, Own New Rate Reducer takes this amount and applies it directly to the mortgage interest to reduce monthly payments.

Depending on their lender’s criteria, buyers can choose to spread the benefit over the first two or five years.

For example, Virgin Money, one of the first lenders to join Own New’s Rate Reducer, says that for a new home worth £300,000 the introductory 2 year mortgage rate of 4.79% with a £995 fee at an LTV will be 65%. reduced to 0.99% at 60% LTV with a £495 fee.

But remember: to get this rate, you need a 40% deposit.

Halifax, Lenders Gen H, Furness Building Society and Perenna also offer discounted introductory mortgages through the scheme.

In addition to saving on monthly costs during that period, the customer also pays more on the capital value of his mortgage, because the interest charged on the loan is lower.

Lenders will still carry out their usual affordability assessment to check whether the buyer can afford repayments if interest rates rise once the fixed term benefit expires.

To access this scheme, independent financial advice must be obtained from a regulated mortgage broker who has completed additional training.

Commenting on its own new Rate Reducer product, David Hollingworth, Associate Director at L&C Mortgages, said: “Buyers will no doubt have put their plans on hold due to higher mortgage rates, which has pushed up their monthly payments.

“This product aims to address these concerns by taking advantage of the developer’s incentive to lower mortgage rates.

This will help address one of the key barriers for many and give buyers more breathing room on their monthly payments.

‘Borrowers will need to meet lenders’ affordability tests as normal, but it will also be important for them to plan ahead.

“Once the deal ends, it’s likely that rates will still be higher and payments will increase.

However, buyers will know this along the way and can therefore work to make provisions for an increase in payments in the future.”

How does the scheme work in practice?

With the Own New Rate Reduced scheme, you buy a new-build home with a mortgage and pay a lower mortgage interest than when you buy on the open market with a traditional mortgage.

When you choose your property, the developer agrees to contribute 3% or 5% of the purchase price.

The mortgage lender will then offset the 3% or 5% developer contribution against the mortgage interest to reduce your monthly payments for the first two or five years, depending on the length of your initial term.

Barratts Homes says mortgage rates below 1.89% will be available through the Own New Rate Reducer program in spring 2024, assuming a 5% incentive for housebuilders, with an initial period of two years and an LTV of 75%.

For comparison, on the open market in spring 2024 the best two-year fix at an LTV of 75% is 4.42%.

So if you take out a $180,000 mortgage over 25 years at 1.89% through the Rate Reducer program, your mortgage payments for the first two years will be $754 per month.

This is €238 per month less than if you took out the best two-year fixed rate with an interest rate of 4.42%, leaving you with an annual saving of €2,856.

Who is eligible and how do I apply?

The scheme is open to those who buy a new-build home and who:

• Are a first time buyer
• Are a house mover
• Have owned real estate in the past

To purchase a home through the Own New scheme, visit www.ownnew.co.uk.

Here you can find an eligible property from a developer who has signed up for the scheme.

You should then discuss your mortgage options with a recognized Eigen Nieuw mortgage broker, such as our partner free mortgage broker L&C.

Once you have agreed, you will continue with the purchasing process of the new construction as normal.

What are the advantages and disadvantages of the scheme?

The main advantage of this mortgage arrangement is that it results in significantly lower monthly mortgage costs for a fixed period.

As a knock-on effect of paying lower rates, the homeowner will also pay off more of their property’s capital.

But once your introductory period ends, you should be prepared for mortgage rates to rise.

You also get a more limited choice of properties eligible for the scheme, and you may not get the nominal 0.99% rate if you can’t afford a 40% deposit.

Other starter schemes where you need a small or no down payment

Several major banks and building societies allow first-time buyers to borrow the full amount needed to purchase their home.

These deals are often called 100% loan-to-value mortgages because you don’t need a down payment to purchase.

Last year Skipton Building Society launched its Track Record 100% mortgage available to tenants buying their first ever property.

The only catch is that the amount you can borrow has a limit, because your monthly repayment cannot be more than what you currently pay in rent.

Real estate developer Fairview recently launched its Save to Buy program.

This allows starters to save for their final deposit after their move.

Buyers pay a fixed amount monthly into a Fairview piggy bank instead of rent.

You only need a 1% deposit to get started and when you’ve built up enough equity, you can apply for a mortgage to buy your home.

Thanks to the Right to Buy scheme, tenants of social housing can buy the home they rent with a discount of up to 70%.

You get a 35% discount on your social housing if you have been a tenant in the public sector for three to five years.

The right to purchase is similar to the right to purchase, but offers people who rent from a housing association or another public sector landlord the opportunity to buy their home.

It is open to anyone renting in the public sector for three years or more and offers a discount of £9,000 to £16,000 on the purchase price.

How much you get depends on the location of the home.

THE boss of Next says the retailer has been in its best position for seven years – and the omens are good for British shoppers too.

As well as profits rising, CEO Lord Wolfson said wages are now rising above inflation, which would be good news for the economy and the high street.

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He also assured customers that prices would not rise, that there were no plans for store closures and indicated that inflation was falling across the board.

“It’s been a long time since we started a year in a more positive frame of mind,” said Lord Wolfson.

“This year is not without risks, but it is nothing like the guaranteed headwinds of the past seven years.”

The number of Next customers who default on credit purchases has also remained the same over the past four years.

Lord Wolfson said this suggested the British had been better at managing debt than any city bank had predicted.

The company saw a bigger-than-expected rise in pre-tax profits of 5 percent to £918 million, while revenues rose 9.1 percent to £5.9 billion.

Shares rose 568p, or 6.6 per cent, to a record high of £90.78 yesterday.

The company’s valuation of £11.54 billion means it is now worth more than double that of rival Marks & Spencer – despite the latter’s recent revival.

And its success is at odds with the work of failed retailers including BHS, Topshop, Debenhams, Dorothy Perkins of Oasis and Warehouse – who failed to keep pace with changing consumer tastes.

Next has used its advantage as a catalog retailer – with warehouses and websites – to boost online sales, and the company is targeting further growth, with £216 million in technology investment this year alone.

It is also building a new warehouse that could add a third of additional online capacity.

Brands bought by Next, including Fatface, Cath Kidston and Reiss, have expanded their portfolio choices to consumers.

It also plans to expand further internationally.

Next now makes 25 percent of its online revenue from sales of other brands – prompting Lord Wolfson to admit it has been operating ‘like a department store online’ for years.

NO BAN BEN & JERRY

UNILEVER’s plans to spin off its ice cream division may face a brain freeze as the Ben & Jerry’s board has defiantly pledged to continue its political activism.

Ben & Jerry’s – founded by Ben Cohen and Jerry Greenfield – is known for its progressive message, with its ‘Save Our Swirled Now’ flavor tubs promoting action on climate change.

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However, the country has been criticized for wading into global politics, demanding a ceasefire in Gaza, refusing to sell ice cream in the West Bank and accusing President Biden of “fanning the flames of war” in Ukraine .

Ben & Jerry’s has an independent board of directors as part of its 2000 takeover of Unilever, but Unilever now wants to take Ben & Jerry’s as well as its Walls, Magnum and Cornetto brands public.

The board said yesterday that it has “ensured that Ben & Jerry’s continues to be at the forefront of a variety of social issues… Unilever’s intention to create a standalone ice cream company does not change the terms of the merger agreement.”

NO VIRGIN VOICE

NATIONWIDE has said it will not give members a vote on its £2.9 billion takeover of Virgin Money.

Instead, the partnership to create Britain’s second-largest mortgage and savings provider will go ahead if three-quarters of Virgin Money’s investors vote in favor.

Former Pensions Minister Baroness Altmann has joined calls for Nationwide to give members voting rights.

She said: “The whole beauty of a mutual society is that it is run in the interests of its members, who also have the right to vote.”

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GAMES WORKSHOP, the maker of fantasy figures and table games, has increased its dividend to 105p per share after reassuring investors that trading exceeded expectations.

The £3.39 billion company is to turn its Warhammer 40k franchise into a TV series.

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£100 million LINE CUTTING

DIRECT LINE’s new boss has unveiled a £100m cost-cutting plan as he defends the insurer’s independence.

The company earlier this month turned down a £3.1 billion takeover attempt from Belgian rival Ageas.

Now Adam Winslow, who took over a few weeks ago, insists the company, which also owns Churchill, has “turned a corner”.

He did not rule out job cuts, but said the savings would come from tight marketing budgets and the use of technology.

The company made a profit of £277 million, after a loss of £302 million.

WAITROSE JOBS AX threatens

WAITROSE is putting more than 500 jobs at risk – just a week after the retailer warned more cuts were on the way.

The upscale grocer is to close a delivery warehouse in Enfield, north London, which opened just four years ago.

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A spokesperson said: “With rental costs at Enfield increasing, we are considering closing the site.”

During lockdown, supermarkets rushed to open more warehouses amid an online shopping boom.

But as shoppers return to stores in droves, grocers are cutting costs.

Amid reports that the John Lewis Partnership could cut 11,000 jobs over the next five years, chairman Dame Sharon White has refused to impose a target on the workforce.

Last week she said there will be “less need for some roles in some areas in the coming years”.

The employee-owned retailer has denied its staff another bonus this year.

BIG APPLE lawsuit

APPLE has been hit with a US lawsuit accusing it of undermining competition by making third-party products work worse on its devices.

The US Department of Justice says Apple “suppresses innovation, harms producers and workers, and increases costs for consumers.”

Apple has said the lawsuit is “false on the facts and the law” – but shares in the iPhone maker still fell more than 3.5 percent yesterday.

MILLIONS of households will breathe a sigh of relief after the Bank of England left interest rates unchanged again today.

The decision-makers at the Bank’s Monetary Policy Committee (MPC) have now kept interest rates at 5.25% for the fifth time in a row.

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Banks and lenders use the Bank of England’s (BoE) base rate to set the interest rates it offers customers on mortgages, loans and savings.

BoE Governor Andrew Bailey said: ‘In recent weeks we have seen further encouraging signs that inflation is easing.

‘We have again kept interest rates at 5.25% today because we need to be sure that inflation falls back to our target of 2% and stays there.

“We are not yet at the point where we can lower interest rates, but things are moving in the right direction.”

At the last meeting, the MPC voted by a majority of 8 to 1 to maintain the bank rate at 5.25%.

One member preferred to reduce the bank rate by 0.25 percentage points to 5%.

It comes just a day after the CPI measure of inflation fell to 3.4% last month – down from 4% in January and the lowest since September 2021.

Most economists had expected interest rates to be 3.5%.

It means inflation is now closer to the BoE’s 2% target.

Inflation is a measure of how much the prices of everyday goods such as food and clothing, and services such as train tickets and haircuts, are now compared to a year earlier.

Economists generally agree that interest rate cuts will happen later this year.

And the Bank has indicated at recent meetings that cuts are likely in the future.

It would reverse a four-year trend of raising rates or leaving them unchanged at each Bank meeting.

An interest rate cut is expected to reduce mortgage costs for millions of households.

This comes after bank interest rates rose from an all-time low of 0.1% in December 2021.

It was increased to tackle rising inflation.

High interest rates are intended to dampen demand and spending, thereby reducing inflation.

Since September, the bank rate has been held at 5.25% as inflation has declined, easing the burden on mortgage holders.

We explain below what exactly a new rate pause means for your finances.

What does it mean for my mortgage?

When interest rates rise, it usually means that your mortgage costs will increase, depending on the type you have.

Those with fixed rates are usually safe until they remortgage.

However, other mortgages, such as tracker mortgages or standard variable rate (SVR) mortgages, could be immediately affected.

Homeowners with an adjustable-rate mortgage may not see their payments increase immediately, but they are likely to increase shortly after interest rates increase.

But the exact amount depends on your loan and your loan-to-value.

However, if the BoE freezes the current interest rate, your lender may choose to do nothing.

This will come as a huge relief to those who have experienced fourteen consecutive increases in their mortgage bills.

Either way, your bank should warn you of any increase in your rate before it goes up.

We’ve also explained how to find the best mortgage rate.

What does this mean for credit card and loan rates?

Again, if the base rate is increased, the cost of borrowing through loans, credit cards and overdrafts could increase as banks are likely to pass on the increased rate.

Certain loans that you already have, such as a personal loan or car financing, usually remain the same because you have already agreed on the rate.

But rates on future loans could be higher, and lenders could increase rates on credit cards and overdrafts – although they should let you know in advance.

But if interest rate hikes are halted, nothing will likely change.

However, you can still cancel a credit card and have 60 days to pay off the outstanding balance.

What does it mean for my savings?

Savers are the largest group that has actually benefited from the last fourteen interest rate increases at the banks.

That’s because banks tend to enter the fray by offering market-leading interest rates.

Although banks typically act much slower than passing on higher interest rates.

If the base rate does not rise, banks will probably benefit from this and also leave their interest rates unchanged.

Anyone currently getting a low rate on easy-to-access savings might find it worth shopping around for a better rate and moving their money.

CHANCELLOR Jeremy Hunt raised hopes of tax cuts before the election yesterday after inflation fell to its lowest level in two years.

He said the drop “opens the door” to lower interest rates, which would make mortgages cheaper.

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And he said this could mean the opportunity to “stimulate growth and make work pay” by cutting national insurance rates.

It will be welcome news for Prime Minister Rishi Sunak, under pressure amid speculation of a challenge to his leadership.

At a meeting of the 1922 Committee last night, Mr Sunak urged backstabbing Tory MPs to work together and dismissed “Westminster gossip” about conspiracies.

Supporters greeted him by banging tables and described his speech as “uplifting”.

Mr Sunak also told the BBC that he would still be Prime Minister after the May 2 local elections, saying that “2024 will prove to be the year the economy recovers”.

Inflation fell from 4 percent to a better-than-expected 3.4 percent as the costs of buying food and eating out fell.

There is plenty of speculation about a mini-budget in the US autumn before the country goes to the polls.

Mr Hunt, who cut the NI rate by 4p, said: “As inflation gets closer to its level goalThat opens the door for the Bank of England to consider cutting interest rates, that brings mortgage rates down, that makes a big difference.

“It is far too early to know whether there will be another budget event before the election, but you can see that the tough decisions the government has made over the past year are paying off.”

Bank executives today plan to keep interest rates at 5.25 percent because inflation, which stood at 11 percent in 2022, is still above the two percent target.

Mr Sunak said the fall was “good news for you, your family and the country”.

But Labor shadow chancellor Rachel Reeves insisted: “Prices are still high tax The costs are the highest in seventy years and mortgage costs are rising.”

RISHI SUNAK finally got some good news yesterday: inflation fell sharply from four percent to 3.4 percent in February, the lowest level in two years.

The crisis began during the pandemic, when lockdowns and Covid restrictions led to shipping containers being stuck at sea and caused massive chaos in the supply chain. When shipping costs soared, companies began passing them on to shoppers.

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The inflation pain worsened when Russia invaded Ukraine and sent energy prices soaring.

So what does autumn mean for our wallets? . .

Question: HAS the inflation beast finally been tamed? The rapid decline from 10.4 percent in February last year to 3.4 percent marks the fastest decline in 12 months since 1978. So it’s fair to say the beast has been tamed and muzzled.

But it hasn’t stopped growling yet: we’re not richer, things are just getting more expensive more slowly.

At 3.4 percent, the level is still above 2 percent goal the Bank of England has explained.

However, economists at think tank the Resolution Foundation have said that if the pace of price falls continues to slow, inflation should fall to that golden 2 percent by then. next one month. This could give the Bank more confidence to lower interest rates.

Q: What’s behind the Last Fall? Falling hotel and restaurant prices and cheaper groceries helped bring the rate down.

Question: Does this mean my bills will finally go down? The energy bill, which is determined by Ofgem, is lower than a year ago, as are the petrol and diesel at the pumps.

But you may still see other bills rising and some groceries, including olives oil and chocolate, are increasing.

Mortgage costs have risen due to higher interest rates and rents are rising at a record pace, by 6.2 per cent in the 12 months to January 2024.

In addition, care home costs have increased, with the average weekly rate increasing by 19 percent compared to 2021/2022.

Although inflation is falling, we are not yet in deflation – a sustained decline in the price of goods and services. So overall, we will probably have higher expenses than last year.

Question: Is anything actually getting cheaper? Some dairy products that rose in price a year ago are now falling.

Security labels on packs of Lurpak heralded the start of the cost of living crisis, but now the price of tubs of butter has fallen by nine per cent.

Some dairy products that rose in price a year ago are now falling

Pasta, which also boomed after Russia invaded Ukraine because both countries produce so much wheat, has also fallen in price as supply chains have been strengthened.

Q: What does this mean for family finances in general? Shoppers have been smart and protected themselves from the full blow of inflation by switching to discounters and cheaper private labels.

According to MoneySupermarket’s latest index, regular household expenses such as insurance, mortgages and groceries have fallen by an average of £62.20 over the past three months.

However, this could also mean that households have stopped paying or canceled subscriptions.

A recent report from the banking chain DFS shows that we are postponing major purchases. And according to which? some households are missing payments on credit card or utility bills to keep up with mortgage payments.

Question: Are interest rates linked to inflation? The reason Britain has had fourteen rate hikes in a row is because the Bank is trying to reduce inflation.

Higher interest rates make borrowing more expensive and are therefore intended to reduce spending and encourage saving.

The idea is that a temperate climate would limit companies’ ability to raise prices because people can’t afford them.

Question: Does this mean rates will drop again soon? What does that mean for my mortgage? The Bank is expected to keep interest rates at the current 5.25 percent today, as its team of rate setters wants more confidence that this path of falling inflation will continue.

They are nervous that some big wage increases by top companies could push prices back up. But economists believe the Bank could cut rates within the next three months, with the next meeting in May.

Governor Andrew Bailey has said it doesn’t have to wait for inflation to reach 2 percent, but that it appears inflation is headed there.

There is a risk that if the Bank postpones the interest rate cut, companies and households will come under too much pressure.

Mortgage rates are already falling, with NatWest cutting home loan costs yesterday.

This is because the big banks are more confident that inflation will fall, so the Bank is likely to cut the base rate soon.

Q: What about the economy, will we finally get some growth? We are already emerging from a short recession, but growth is hovering around zero.

Inflation has made it harder for the economy to grow as the rising cost of goods has taken big chunks out of our pockets.

People have had to cut back because they can’t afford what they used to buy, and companies have reined in their investments because interest rates have made the cost of borrowing too high.

If there is more confidence that inflation will fall, people and businesses will start spending again, which should stimulate the economy.

Mortgage rates are already falling, while NatWest is cutting home loan costs

Q: What does this all mean for Rishi? One of the Prime Minister’s five promises was to halve inflation, and he has more than done that.

The problem is that people are still struggling, the price of goods is still expensive and the Bank’s higher interest rates have arguably played a greater role in reducing inflation than any government policy.

But after a grim ten days for the Prime Minister – full of conspiracies and internal rows – it is a much-needed boost.

He can say his plan is working and that people should start to feel a difference as wages continue to rise, mortgage rates fall and free child care is expanded, which should encourage more people to work.

The hope is that an improved economy will allow him to afford another round of tax cuts before the election.

Spending a penny is the future of finance – as cash hubs in public toilets are being touted to replace bank branches.

The news came as MPs on the Treasury Select Committee yesterday pressed bosses at Britain’s biggest banks over access to cash and the exclusion of individual customers.

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Anne Marie Morris, MP for Newton Abbott, demanded answers over the scale of the bank closures and said she had seen plans for a cash hub in a “public toilet”.

Banks and building societies have closed 5,908 branches since 2015 – at a rate of 54 per month – almost half the number of branches they had a decade ago.

Despite all these closures, there are currently only 35 Cash Access hubs, with the ambition to open 100.

Ms Morris told bank bosses: “The promise from all of you is that when the branches go, there will be an implementation of a cash hub with Cash Access UK.

“It’s fundamentally flawed. There are too few resources available, there is not enough money, there are places that need to be furnished.

“We have one hub in a public toilet. I hope you’re not proud of that.”

The Sun confirmed that Cash Access UK – responsible for setting up hubs – is in the process of agreeing a lease on a former public toilet, which will instead be used for banking services. It is believed to be located in the southwest.

Barclays chief executive Vim Maru defended closures as a symptom of consumers’ changing banking habits.

He told MPs: “Branch use is down 65 per cent, but app use is up 120 per cent. So we are responding to consumer demand.”

Lloyds boss Charlie Nunn said the number of customers in branches had fallen by 50 per cent, but his bank has to invest at post office counters and ATMs to assist with access to cash.

Barclays has shrunk its network the most, with 1,168 businesses closed, followed by Natwest, Lloyds and Santander, according to Which? facts.

Cash Access UK said it has opened hubs in former shops, cafes and bank branches, as well as in more unusual locations such as an old mill.

On de-banking – where banks close accounts deemed to pose a financial, legal or reputational risk – NatWest, Santander and Barclays say their program to update customer information has resulted in a wave of closures of inactive or dormant accounts.

Santander closed 37,000 accounts last year, the “vast majority” of which were due to the program, the report said.

NatWest said most closures are due to fraud or financial crime and that an “absolute minority” have concerns about a customer’s reputation.

Ken can’t afford it

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MORE than £6 billion has been wiped off the value luxury powerhouse Kering after a slump in sales at Gucci.

The fashion brand, which dressed Ryan Gosling in a habit pink suit for its Ken-inspired performance with Guns N’ Roses guitarist Slash at the Oscars, has suffered a 20 percent drop in sales in the first three months of the year.

Luxury brands have so far defied the cost of living crisis as wealthy shoppers have continued to spend.

But now Gucci is suffering from tight budgets in China and the departure of designer Alessandro Michele.

Shares in parent company Kering, which also owns Alexander McQueen, Saint Laurent and Balenciaga, fell as much as 14 percent after yesterday’s warning. It also beat shares of rivals Burberry and LVMH.

Brewer’s Shepherd delight

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Britain’s oldest brewer, Shepherd Neame, has posted record sales despite selling less beer.

The 300-year-old company said total turnover rose 4.3 per cent to £89 million in the six months to December 23.

But sales in the brewery division fell 3.8 per cent to £29.2 million, due to a 10.5 per cent drop in volumes.

Sales of cask beers such as Spitfire and Bishops Finger fell even more by 16.7 per cent, although the division returned to a profit of £200,000.

Shepherd Neame has increased prices over the past two years to cover higher costs for bottling ingredients and glasses.

The company said it had pulled back from supplying as many products to supermarkets because of lower profit margins.

Shepherd Neame’s pre-tax profits fell to £1.1 million from £5.5m last year.

Mike is in training

BILLIONAIRE Mike Ashley has taken a job as a consultant at model railway company Hornby.

Ashley’s Frasers Group has a 9 per cent stake in Hornby, which includes celebrity Jools Holland and Rod Stewart as enthusiasts.

Hornby said Mr Ashley would provide advice on operations, logistics and strategy.

He will not receive compensation for his advisory services, but will benefit if he can revive Hornby’s share price.

Mortgage hope

Mortgage interest rates are falling again after a sharp fall in inflation.

Natwest yesterday cut the five-year interest rate on 90 per cent loans from 5.54 per cent to 5.30 per cent.

Loans are priced based on what financial markets expect to happen in the coming months, rather than waiting for the Bank of England to act. The Bank is expected to maintain interest rates at 5.25 percent today.

Rightmove expert Matt Smith said there was “renewed optimism” about the direction the economy would go.

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HOLLAND & BARRETT is the latest retailer to increase wages. Staff will receive a nine per cent increase, from £11 to £12 per hour, with an increase in London from £11.95 to £13.

Tesco, Co-op and Primark, among others, must increase salaries to recruit and retain staff.

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Reduction in flight costs

TRIPPERS could pay less to fly to and from Heathrow after the Civil Aviation Authority ordered it to cut airline fees by six per cent for the next one two years.

The costs are generally passed on to passengers, with an average this year of £25.43 per traveler. That will now fall to around £23.72 in 2025, and to £23.70 in 2026.

Heathrow, which has returned to profits thanks to a boom in holiday bookings, had argued it should charge £42 per passenger.

A major lender has cut its mortgage rates after inflation fell more than expected and ahead of a key Bank of England meeting.

NatWest has announced it will reduce mortgage deals by up to 0.24% for those who refinance, and some deals by up to 0.07% from tomorrow.

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The bank will offer a five-year fixed rate remortgage deal for someone with a loan-to-value (LTV) of 90% at 5.30%, down from 5.54%.

Mortgage holders with a Loan-to-Value value of 60% can get a five-year remortgage deal at 4.48%, up from 4.59%.

The LTV is the percentage of the outstanding mortgage compared to the value of the home.

It comes after the latest inflation figures came in lower than expected, fueling expectations that the Bank of England could cut its key interest rate sooner than expected.

The CPI measure of inflation for February was 3.4% – down from 4% in January and the lowest level since September 2021.

Most economists had expected interest rates to be 3.5%.

Inflation is now moving closer to the Bank of England’s 2% target.

Inflation is a measure of how much the prices of everyday goods such as food and clothing, and services such as train tickets and haircuts, are now compared to a year earlier.

A target of 2% has been set for a steadily growing economy.

It comes ahead of tomorrow’s latest interest rate decision.

The Bank is expected to keep its base rate at 5.25% for the fifth time in a row, but the latest drop in inflation could see it fall sooner than expected.

Lenders tend to price their mortgages in anticipation of what the Bank will do in the future, rather than immediately. Hence NatWest’s decision to reduce some mortgage rates.

Rohit Kohli, director of estate agency The Mortgage Stop, said borrowers would see “some light at the end of the tunnel” after NatWest’s decision to cut rates.

Meanwhile, Ben Tadd, director at Lucra Mortgages, said other lenders could follow NatWest’s lead by cutting rates.

He added: “NatWest is the first major bank to take action on the positive inflation figures released this morning.

“We hope this could be the start of a new interest rate war in the mortgage market.”

It comes after a number of lenders cut mortgage rates in January, ahead of the BoE’s rate cuts this year.

But three major lenders, including Halifax and Santander, raised rates earlier this month after months of fluctuating swap rates, which underlie fixed-rate mortgages.

Other brokers were more cautious as NatWest also announced it would also increase rates on some two-year trackers by up to 0.4% tomorrow.

Tracker mortgages are more tied to the BoE base rate, meaning they can rise or fall at any time, unlike fixed interest rates which remain the same for the life of the deal.

Gareth Davies, director at South Coast Mortgage Services, said: “It is intriguing to observe NatWest’s decision to increase the prices of tracker products, especially when they are experiencing strong demand.”

Many homeowners looking to take out a new mortgage have opted for a tracker in anticipation of a drop in fixed mortgage rates this year.

Economists expect inflation is now likely to fall below the Bank of England’s 2% target in April or May, thanks to the upcoming 12% fall in the energy price cap on April 1.

They said this could pave the way for the Bank to start cutting rates in August or possibly as early as June.

How to get the best deal on your mortgage

Finding the best mortgage deal depends entirely on what’s available at the time, but there are ways to get ahead of the competition.

Usually, the larger the deposit, the lower the interest you can get.

If you take out a new mortgage and your loan-to-value ratio has changed, this could also give you access to better rates than before.

A change in your credit score or an increase in your salary can also help you access better rates.

If you have a fixed rate, you could see higher interest rates at the end of the current term, after the BoE increases rates from 2022 until last year.

And if you’re nearing the end of a fixed deal in the next six months, it’s worth contacting your broker now to lock in a rate.

If they drop between now and the end of your deal, you can always apply for a different rate before taking out a new mortgage.

If you leave a fixed deal early, you’ll typically be charged an exit fee, so you’ll want to avoid these additional fees.

But depending on the cost and how much you can save by switching or staying, it may be worth leaving the deal, but compare the costs first.

Use one to find the best deal Mortgage comparison tool to see what’s available.

You can also go to a mortgage broker who can do comparison shopping for you, with most offering free advice to help you secure the best deal for you.

Some brokers charge for advice, so ask them first.

It may cost a few hundred dollars, but it could save you thousands of dollars in total on your mortgage.

You will also need to consider the costs of the mortgage, although some have no costs at all, or you can add these to the cost of the mortgage.

But keep in mind that this means you will pay interest on it and it will be more expensive in the long run.

You can use a mortgage calculator to see how much you can borrow.

Please note that if you decide to take out a new mortgage with a new lender, you will need to pass affordability checks.

It can also check your credit file to see if you have repaid previous debts.

You may also need to provide documents such as utility bills, proof of benefits, your last three months’ pay slips, passports and bank statements.

It is possible to avoid new affordability checks by taking out a new mortgage with your existing lender, provided you do not want to borrow more or extend your term.

Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.

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British inflation fell more than expected last month, to the lowest level in more than two years.

The Office for National Statistics (ONS) said consumer price index inflation was 3.4% in February – down from 4% in January and the lowest level since September 2021.

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Most economists had expected inflation to reach 3.5% last month.

Inflation is now closer to the Bank of England’s 2% target ahead of tomorrow’s latest interest rate decision.

Policymakers are widely expected to leave rates unchanged at 5.25%, but the sharp drop could push the Bank closer to a rate cut later this year.

Chancellor of the Exchequer Jeremy Hunt said: “The plan is working. Inflation has not only fallen decisively, but is expected to reach the 2% target within months.

“This sets the stage for better economic conditions that could enable further progress in our ambition to boost growth and make work pay by abolishing national insurance, as we work to eliminate double taxation on work – but only if we can do it without increasing borrowing.” or cutting funding for public services.”

Inflation is a measure of how the price of goods and services has changed over the past year.

Grant Fitzner, chief economist at the ONS, said: “Inflation fell to the lowest level in almost two-and-a-half years in February.

“Food prices were the main driver of the decline, with prices remaining virtually unchanged this year compared to a large increase last year, while price increases in restaurants and cafes also slowed.

“These declines were only partially offset by price increases at the pump and a further increase in rental costs.”

Food and non-alcoholic beverage prices rose 5% in the period to February 2024, up from 7% in January.

This figure is the lowest annual figure since January 2022.

On a monthly basis, food inflation rose 0.2% – far less than the steep increases seen a year earlier.

The annual figure for restaurants and hotels also fell in February, from 7.1% in January to 6%.

It comes after inflation unexpectedly rose to 4% at the end of last year.

It was the first time since February 2023 that interest rates rose and came as a surprise to many economists.

High inflation means the cost of daily necessities, such as food and energy, is rising, which means your money doesn’t go as far.

What it means for your money

High inflation means the cost of daily necessities is rising and therefore your money doesn’t go as far.

When inflation falls, it doesn’t mean that prices stop rising, just that they rise more slowly.

Alice Haine, personal finance analyst at Bestinvest, said: “Falling inflation will certainly be welcomed by households whose finances have been forced to absorb rising price increases during the peak cost of living.

“Of course, prices are still rising, but at a slower pace – a huge comfort considering inflation reached a worrying high of 11.1% in October 2022.”

The Bank of England (BoE) and the British central bank may increase the key interest rate in an attempt to reduce inflation.

This is good news for people who have savings, as they may see a boost.

It’s bad news for homeowners because it also means mortgage rates will rise, meaning more pressure for homeowners.

But falling inflation is providing some support for mortgage holders and potential buyers hoping for interest rate cuts.

The Bank’s base rate is currently 5.25% and the Central Bank will meet again tomorrow (March 21).

Alice said: ‘Most households would welcome a rate cut tomorrow, but the BoE is expected to keep rates at current levels for the fifth time in a row, after fourteen consecutive increases between December 2021 and August 2023.

“With the first rate cut not expected until the summer, all eyes are on what the central bank has to say tomorrow to see if there are indications of earlier action.”

This means borrowing costs could remain higher for longer as the BoE waits for more consistent evidence that inflation is slowing.

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A major high street lender has introduced a huge rule change to help Universal Credit households get onto the property ladder.

Santander now accepts Universal Credit payments as a secondary income for mortgage affordability.

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Universal Credit is a social security scheme designed to combine several of the old “legacy benefits” into a single monthly payment.

Mortgage experts have described the change, which came into effect this week, as ‘good news’ for low-income households, who may find it difficult to get a mortgage.

Prospective buyers looking to borrow from Santander will need to prove they have a primary source of income in addition to their Universal Credit entitlement.

This can be done through a job or as a self-employed person.

This information must be clearly stated in the Universal Credit award letter and you must have been making a claim for six months.

Hopeful homeowners claiming Universal Credit may find it difficult to get a mortgage, but it’s not impossible.

Some banks refuse to grant loans to benefit recipients, but others will consider your application.

Eligibility varies depending on the bank, and some will accept your application depending on your financial circumstances.

That’s because they’re concerned about a borrower’s ability to repay their mortgage.

Karen Noye, a mortgage expert at asset management company Quilter, said: ‘Lenders offering additional income, such as Universal Credit, are good news for low-income households, especially where the low income is due to having a young family and more of a is a short-term measure. rather than in the long term.

“Different lenders have different criteria regarding additional income. Some will only accept it if it is guaranteed for the life of the mortgage, while others will consider it if it is likely to last at least another five years.”

HSBC, Lloyds Banking Group, Natwest, Barclays and Nationwide will consider mortgage applications from benefit claimants, including those on Universal Credit.

While Metro Bank only accepts Disability Living Allowance (DLA), Personal Independence Payment (PIP) and State Pension as income.

DLA and PIP are available for people who have additional care or mobility needs due to a disability or health condition.

Whether your application is successful depends on whether you have any other income or assets and on the benefits.

You must demonstrate that you can keep up with the repayments.

Some banks will include specific conditions in their offer, for example that you may only use a certain percentage of your benefit to cover the mortgage.

Find a mortgage advisor who will help you find a suitable provider who will consider your application.

They can also find the best deal for you.

However, keep in mind that they charge a fee for their services, so you should factor that into your costs.

What other mortgage assistance is available?

As soon as you think you may have a problem with your monthly mortgage payment (whether you cannot pay anything, cannot pay your monthly payment in full or cannot pay it on time), contact your lender immediately.

They have certain arrangements in place to help you if you are having a hard time.

You can ask your lender about the breathing space arrangement if you feel that payments are unaffordable.

Under the breather program, none of your debts will accrue interest and you will not be charged any fees for 60 days.

You are protected against collection agencies and bailiffs.

You may also be able to request a payment holiday; then you don’t have to pay anything.

But interest and fees may still accrue, and missed payments will have to be made up in the future.

Each company has different policies, so you will need to contact us to find out what support is available to you.

Mortgage Interest Support or SMI helps people on Universal Credit (and other benefits) by giving them a low interest loan.

The assistance goes towards paying the mortgage or towards loans taken out to help repair any damage to the home.

SMI is a loan that you must repay with interest when you sell your home.

You will receive help with paying the interest on a maximum of € 200,000 of your loan or mortgage.

But you only get a maximum of £100,000 if you get a pension credit.

The interest added to the loan can go up or down, but the interest rate will not change more than twice a year – the current interest rate is 3.03%.

Contact the office that pays your benefits to see if you can get an SMI loan.

There are also several charities and services that offer free help and advice if you are worried about money.

It is always best to contact one of these services before thinking about debt consolidation or hiring a debt advisor who will likely charge you.

Citizens Advice is a free and impartial service that helps you come up with a plan to pay off your debts, including which payments to prioritize and how to reduce your living costs.

There is one on the organization’s website useful page with advice about many aspects of debt, but you can contact them directly by phone, online or in person for more personalized help.

StepChange is another free advice service that offers support and guidance online or over the phone, and is completely confidential.

You’ll need to provide details about your debts, income and household expenses to get a clear picture of where your money is going.

Where possible, their advisors will help you come up with a plan to repay all your debts, but in a way you can afford.

National Debtline is a charity offering free and confidential advice to people in England, Wales and Scotland.

You can contact them online or by telephone on 0808 808 4000, Monday to Friday from 9am to 8pm and on Saturday from 9.30am to 1pm.

An advisor will help you figure out what you can pay back and help you determine the best solution for your debts.

Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.

Moreover, you can join us Sun Money chats and tips Facebook group to share your tips and stories.