March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 July 2024 August 2024 September 2024 October 2024 November 2024 December 2024 January 2025
1 2 3 4 5 6 7 8 9 10 11 12 13 14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
News Every Day |

What market turmoil means for your money including pensions, mortgages and savings

THE pound has fallen further and government borrowing costs are rising as market turmoil continues.

The fall on Monday means £1 is now worth $1.21 after dropping to $1.23 last week – its lowest level against the dollar since November 2023.

Getty
The impact of this volatility is likely to hit people’s finances[/caption]

It followed revelations that government borrowing hit a 27-year high causing concerns over the economy and fears that there need to be more tax rises.

The impact of this volatility is likely to hit people’s finances including pensions, mortgages, savings, and anyone heading abroad.  

As well as higher borrowing costs, there are concerns that inflation is not falling as expected and therefore interest rates will remain higher for longer.

When the government needs to borrow money, it issues bonds, often referred to as gilts.

The interest rate on these bonds is known as the yield. Currently, these yields are rising, making borrowing more expensive.

The yield on 10-year gilts hit fresh highs last week not seen since 2008, while the yield on 30-year gilts is at its highest since 1998.

The increase in the 10-year gilts are particularly concerning as they are the benchmark for high street banks to set mortgage rates and other borrowing costs for Brits.

On paper, higher yields should make bonds more attractive to investors.

And if investors buy lots of bonds, they need to buy pounds to do so, which normally increase the pound’s value.

However, that’s not what’s happening right now.

The rising yields are actually making investors more worried about the UK economy.

They fear the government might be struggling financially and that the UK could be heading for “stagflation” – a period of slow economic growth and high inflation.

What are gilts?

GOVERNMENT bonds, or gilts, are seen as the telltale sign of global investors' opinion on the health of the UK economy and its leadership.

They also shape investors’ views on whether a Budget has been a success or failure.

Gilts are issued by the Government as parcels of debt that pay out a return — or coupon — to investors over a fixed term, such as five, 10 or 30 years.

The yield reflects the amount of interest paid, and increases when the price of a bond falls to reward the investor for the risk of holding a cheaper asset.

Yields increase when the price of a bond falls because investors want bigger returns for owning a riskier asset.

This makes the UK a less desirable place to invest.

As a result, investors are selling pounds rather than buying them, which pushes the pound’s value down.

Official figures due on Wednesday are set to show that UK inflation remains above the 2% Bank of England target.

Here’s what the market woes mean for your personal finances.

Pensioners and those nearing retirement

Market volatility is impacting UK pensions, creating both challenges and opportunities for retirees and those planning for retirement.

A weaker pound can affect the value of overseas investments, as currency fluctuations influence returns.

While a dip in your portfolio’s value can be concerning, experts advise against panic selling.

While the UK gilt market’s volatility has caused concerns, it’s simultaneously boosted annuity rates, creating a potential advantage for those nearing retirement.

As gilt values fall and yields grow, annuity rates rise. Better annuity rates mean a higher income.

An annuity is a type of retirement product you purchase with the money from your pension pot. It pays you a guaranteed income for life.

Fresh data from Hargreaves Lansdown shows a 65-year-old with a £100,000 pension could now receive an annual income of up to £7,425.

That is a notable increase from the £7,235 offered just a week ago, and a substantial 48% jump from three years ago.

This rise in annuity rates is bucking the trend seen in previous years, where falling interest rates and gilt yields were expected to drag down annuity incomes.

While this presents a valuable opportunity for retirees to secure a higher guaranteed income, financial advisers urge caution.

Shopping around and comparing rates from different providers is crucial.

Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “Once bought, an annuity cannot be unwound and different providers offer different rates.

“If you take the first quote offered without checking the rest of the market, you may find you’ve made a costly mistake. Using an annuity search engine can help you check the market quickly and easily before you make a decision.

“You also don’t need to annuitise all your pensions at the same time if this doesn’t work for you.

“You can take a flexible approach and annuitise in stages throughout your retirement as your needs evolve.”

First-time buyers and homeowners

The UK gilt market sell-off is creating a ripple effect in the mortgage market, potentially pushing up borrowing costs for homeowners.

Rising gilt yields, driven by persistent inflation concerns, are impacting swap rates, the financial instruments lenders use to price fixed-rate mortgages.

This means that mortgage rates, which had been predicted to fall, could now rise.

Two-year swap rates, reflecting market expectations for future interest rates, have jumped from 4% in mid-December to over 4.5%.

Nicholas Mendes of John Charcol warns, “The coming year could be another painful one for mortgage holders.

While some lenders recently engaged in a “mini price war,” lowering certain rates, others have already implemented increases.

Mark Harris of SPF Private Clients advises borrowers to seek advice from a mortgage broker and consider locking in a rate now, even if the mortgage isn’t needed immediately.

This year, an estimated 690,000 UK homeowners will reach the end of their fixed-rate deals, many of whom secured low rates before the 2022 market turmoil.

A further 350,000 homeowners coming to the end of two year fix who are remortgaging this year are expected to see their rate fall as they locked in when rates peaked.

While some with expiring two-year fixes may see lower rates, the majority face increases, with potential monthly payment jumps of around £146.

Louis Mason, content and communications director at Oportfolio Mortgages, said: “Inflation data this week will be critical for market sentiment.

“An upside surprise could push swap rates and mortgage pricing higher as lenders price in risk.

“I agree with Frances Haque’s assessment – current bond market volatility and inflation persistence may prompt lenders to adjust rates upward in the short term.”

I can I get the best mortgage deal?

IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time.

There are several ways to land the best deal.

Usually the larger the deposit you have the lower the rate you can get.

If you’re remortgaging and your loan-to-value ratio (LTV) has changed, you’ll get access to better rates than before.

Your LTV will go down if your outstanding mortgage is lower and/or your home’s value is higher.

A change to your credit score or a better salary could also help you access better rates.

And if you’re nearing the end of a fixed deal soon it’s worth looking for new deals now.

You can lock in current deals sometimes up to six months before your current deal ends.

Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.

But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal – but compare the costs first.

To find the best deal use a mortgage comparison tool to see what’s available.

You can also go to a mortgage broker who can compare a much larger range of deals for you.

Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.

You’ll also need to factor in fees for the mortgage, though some have no fees at all.

You can add the fee – sometimes more than £1,000 – to the cost of the mortgage, but be aware that means you’ll pay interest on it and so will cost more in the long term.

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

Remember you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks and looking at your credit file.

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

Savers

While rising gilt yields could theoretically lead to higher savings rates, the reality is unclear.

Banks and building societies might offer better returns on savings accounts to attract deposits, as they can potentially earn more by investing in higher-yielding government bonds.

However, this isn’t a guaranteed outcome.

Factors like operating costs and competitive pressures also play a significant role in setting savings rates.

Savings rates are also primarily influenced by the Bank of England‘s base rate, currently at 4.75%.

Mark Hicks, head of active savings at Hargreaves Lansdown, added that short-term fluctuations in gilt yields are unlikely to have a major impact on the Bank’s decision to cut rates.

How can I find the best savings rates?

WITH your current savings rates in mind, don't waste time looking at individual banking sites to compare rates - it'll take you an eternity.

Research price comparison websites such as MoneyFactsCompare.co.uk and MoneySupermarket.

These will help you save you time and show you the best rates available.

They also let you tailor your searches to an account type that suits you.

As a benchmark, you’ll want to consider any account that currently pays more interest than the current level of inflation – 2%.

It’s always wise to have some money stashed inside an easy-access savings account to ensure you have quick access to cash to deal with any emergencies like a boiler repair, for example.

If you’re saving for a long-term goal, then consider locking some of your savings inside a fixed bond, as these usually come with the highest savings rates.

Holidaymakers

A fall in the value of sterling is bad news for holidaymakers, who will find they get less travel money at the Foreign Exchange.

Sterling fell to $1.214 on Monday, down from $1.251 this time last week.

That means buying anything abroad seems more expensive and can impact what you can afford to do on your holiday.

For example, if the value of the pound versus the dollar is $1.25/£1 then for every £100 you change up, you get £125 dollars.

But, if the pound to dollar exchange rate drops to $1.21/£1 you’ll only get $121 for £100 holiday spending money.

You can take some steps to make your travel money go further.

Ordering your cash online in advance will help avoid a last-minute rush at the airport, where the exchange rates are typically much worse.

TravelMoneyMax at moneysavingexpert.com can help you compare rates from different bureaux de change.

Overseas spending cards mean you don’t have to worry about carrying wads of cash, too.

Tony Redondo, founder at Cosmos Currency Exchange said: “The Pound has already fallen by over 2.5% against the Euro and by nearly 5% against the Dollar since Christmas.

“Further falls are expected across the board.

“Add in the fact that Trump’s inauguration is now just over one week away and the negative economic effect his tariff plans could have on both the UK and Eurozone economies could see the Pound trade at $1.15 or lower against the greenback.”

However, it remains unclear if Trump will follow through his plans to introduce such tariffs.

What are the alternatives to taking cash abroad?

THERE are a number of specialist cards that can give you a great exchange rate and fee-free spending and cash withdrawals when abroad.

These cards include debit and credit cards and pre-paid cards, which allow you to pay abroad without fees or at a set exchange rate.

Check your debit card

You should always check the terms and conditions of your debit card to see if, on the off chance, you can use it abroad without any extra fees.

This can often take the pain out of having to buy currency ahead of time and rely on cash.

Your bank will automatically convert your transactions to the correct currency with the live exchange rate so ensure that you always pay in the local currency.

Chase, First Direct and Starling all offer fee-free spending when yous use their debit cards abroad.

Those without this capability could choose to link their bank account with Currensea’s Mastercard debit card via open banking.

Then when you spend or withdraw on the Currensea card, it charges your linked current account in pounds (via direct debit), avoiding the non-sterling transaction fees and ATM fees that most banks charge.

Travel credit cards

Travel credit cards allow you to spend money abroad without being hit by any fees or hidden charges.

But, they may still charge you for taking cash out.

We recommend the Barclaycard Rewards Visa because it doesn’t charge for using it abroad, and there are no fees for withdrawing cash if you pay off your bill in full each month.

You must always pay off your balance before the end of the month with these cards to ensure that any money you save isn’t wiped away by paying interest.

Prepaid card

An alternative to carrying cash or your debit card around is to get a pre-paid card.

Brands like Revolut, Wise and EasyFX all provide prepaid travel cards.

HSBC launched its Zing subsidiary in January 2024, which gives existing and non-HSBC customers access to a prepaid debit card without fees.

The card can hold up to 10 currencies and be used in more than 200 countries.

These cards allow you to put a set amount of cash on the card at a fixed exchange rate.

So if the rate is good now you can put money on your card, and it will stay that rate when you are on holiday.

But, these cards can sometimes have hidden costs and charges so be sure to read the small print.

Симферополь

Выставка прославленного имени «Я как живу, так и пишу, свободно»

Nvidia flatters Trump in scathing response to Biden’s new AI chip restrictions

Mastodon’s CEO and creator is handing control to a new nonprofit organization

Pete Buttigieg has a few things to say on his way out

I’ve bartered my way to a better life – I’ve traded vegetables for a better car & eggs for haircuts, now I’m debt-free

Ria.city






Read also

Player grades: Warriors vs. Raptors

These NYC neighborhoods offer the best deals on apartments: StreetEasy

What is GitHub? Everything to know about Microsoft's software development platform and why it's so popular

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Pete Buttigieg has a few things to say on his way out

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

I’ve bartered my way to a better life – I’ve traded vegetables for a better car & eggs for haircuts, now I’m debt-free



Sports today


Новости тенниса
Анна Калинская

Теннисистка Калинская снялась с матча и покинула Australian Open — 2025



Спорт в России и мире
Москва

Найденный погибшим спортсмен Фещенко был сотрудником ФСБ



All sports news today





Sports in Russia today

Москва

Причины популярности Vavada


Новости России

Game News

Speedrunning Crazy Taxi with a live band is an inventive way to dodge a DMCA takedown


Russian.city


Архангельск

На архангельском «Труде» прошли всероссийские соревнования по хоккею с мячом


Губернаторы России
Михаил Кутушов

Самодиагностика по языку: доктор Кутушов назвал неочевидные признаки болезней


Генсек ОДКБ оценил перспективы стратегического партнерства Армении и США

Ветераны СВО будут проходить лечение в центрах реабилитации Социального фонда

Климатолог Кокорин назвал причины, почему 2024 год назвали самым жарким

В 2024 году Отделение СФР по Москве и Московской области назначило единое пособие родителям 370,5 тысячи детей


В российском посёлке назвали улицу в честь Курта Кобейна

Певица Акула вышла замуж сразу после рождения ребенка

Певец Алексей Воробьев вернулся в свой особняк в Лос-Анджелесе после пожара

Депутат ЗСК Виктор Тепляков провёл первый в 2025 году приём граждан


Рейтинг WTA. Касаткина опустилась на 10-ю строчку, Рыбакина – на 7-ю, Киз вернулась в топ-15

Соболенко заявила, что хотела бы видеть флаг Белоруссии на турнирах WTA

Теннисист Даниил Медведев победил Касидита Самрея ценой ракетки

Джокович сравнялся с Федерером по количеству матчей в турнирах Большого шлема



В 2024 году Отделение СФР по Москве и Московской области назначило единое пособие родителям 370,5 тысячи детей

В Московском регионе 5,6 тысячи самозанятых самостоятельно формируют будущую пенсию

В Московском регионе 5,6 тысячи самозанятых самостоятельно формируют будущую пенсию

Ветераны СВО будут проходить лечение в центрах реабилитации Социального фонда


Самарский губернатор возглавил рейтинг плотности федеральных контрактов. Минниханов стал 21–м

Бросился спасать Россию, даже оставив ребенка в Америке! Незаметный герой культовой победы на ЧМ-2008

Помощь в организации нескольких Презентаций книги для Писателей и Поэтов в Книжных магазинах и других площадках.

Путин обсудит развитие Крыма и проведет урок "Победа" на предстоящей неделе


Автовладельцы могут приобрести 11 машино-мест в районе Текстильщики

А вы знали? В Нижнем Тагиле жил участник культовой группы «Ласковый май», который первым исполнил мега-хит «Розовый вечер», выступление легендарного танцора Махмуда Эсамбаева вызвало невиданный ажиотаж, а Лариса Долина едва не отказалась выходить на сцену на юбилее КРЗ  

Экономист Щербаков назвал сокращения в «Газпроме» полезными для России

Потолок — натяжной, полы — наливные: как сэкономить на ремонте в 2025 году



Путин в России и мире






Персональные новости Russian.city
Анастасия Волочкова

«Жена»: Волочкова заговорила о тайной свадьбе с молодым любовником



News Every Day

TV show Chhathi Maiyya Ki Bitiya’s Brinda Dahal Shares an Inspiring Message on National Youth Day




Friends of Today24

Музыкальные новости

Персональные новости