Money blog: Mortgage blow as lenders start to put up rates (2024)

Plans to modernise the pension market have been set out by the government - but what do they mean for retirees?

The move would broaden access to a new type of pension scheme - a Collective Defined Contribution (CDC).

These can be expected to generate higher returns than other options, such as defined contribution (DC) schemes or defined benefit (DB) schemes.

With a DC, the employee bears the risk as to how much money they end up with in retirement (because it depends on how much they pay in and it could run out), while DB promises a certain income in retirement, based on salary (these are becoming less common, and employers take on significant risk).

CDC is designed to bridge the gap between these two pension types.

It's complicated, but...

TPT retirement solutions explains: "Unlike a DC scheme, a CDC scheme provides a whole-life pension income to members.

"The contributions employers and members pay are fixed and pooled into a collective fund. By pooling investment and life expectancy risk amongst the membership, a CDC pension is expected to generate higher returns than an individual DC scheme resulting in higher expected benefits.

"Annual increases to benefits depend on the performance of the scheme. This removes the possibility of the employer having to plug a funding gap."

It's already in use at Royal Mail

The scheme was first launched by Royal Mail, but access was limited. The government is now looking to broaden access to it.

A consultation seeks views from employers, industry experts, pension providers and the public on draft regulations and their potential impact.

It will run until 19 November.

Spam emails are emails sent to you without your knowledge or consent, which often contain marketing.

Its content can cause annoyance, embarrassment and even distress.

Not all marketing emails sent without consent constitute spam, but they must abide by strict rules regarding their content and provide you with the opportunity to opt out.

The Privacy and Electronic Communications Regulations 2003 cover the sending of marketing emails.

The legislation says that organisations must only send marketing emails to individuals if you have agreed to receive them, except where there is a clearly defined customer relationship.

How do I stop unwanted marketing emails?

If the emails are coming from a recognisable UK source or an organisation you are familiar with, click the unsubscribe button that is usually found at the bottom of the email.

Alternatively, you can email the sender directly to ask them to stop sending you marketing emails.

If you do this, remember to keep a copy of any correspondence. You should allow the sender time to put things right.

You can also check the security options on your email. It should have a filter that sends most spam emails straight to a separate junk folder.

You can also stop emails from particular senders. Check the instructions for the email programme you use.

If the emails are not from a recognisable UK source or are from an organisation you are not familiar with, do not reply to them.

You should also avoid clicking on any link, as this might confirm your email is live and make you a target for more spam emails.

You can report receipt of these emails to the Information Commissioner's Office (ICO).

Reporting spam emails to the authorities

If you still receive marketing emails or spam after unsubscribing or asking the sender to stop emailing you, complain to the ICO.

You should not forward your spam email to the ICO. Instead, complete this online formor call 0303 123 1113.

You can also write to: Information Commissioner's Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF.

The ICO says the following about spam emails from non-UK sources:

The ICO can only investigate complaints about marketing emails from identifiable UK senders. As a lot of spam emails come from outside the UK, the Information Commissioner has an agreement with a number of overseas bodies to cooperate and exchange information to try and stop spam emails that are sent from those places.

For dealing with spam emails originating from the UK, the ICO says it will investigate and take action against organisations that are not following the rules around direct marketing. It has the power to issue sizeable fines.

The ICO doesn't respond to complaints individually, so is unlikely to contact you about your complaint unless it needs further information to help with an investigation.

Legal action is also an option, but you would need to prove you suffered loss or significant distress - quite a high bar.

You could seek legal advice if it has got to this stage.

AllSaints has launched a UK-based subscription rental service that gives customers unlimited access to its men's and women's clothing.

It costs £79 a month, and you can cancel any time.

Here's how it works...

Once you have created an account, you can browse through the clothes on the rental programme and add things to your "virtual wardrobe".

You have to select a minimum of three items - but AllSaints suggests having around 20 added to your wardrobe at all times.

The retailer then picks two of the items you have chosen, and sends them to you in the post to wear as many times as you like.

After you've received them, you then have the option to send them back in a prepaid return bag - or, if you really like them, you can buy them for up to 60% off the retail price.

As soon as you have popped an item in the post to return it, and let AllSaints know through a Return Notification feature, another two items from your "virtual wardrobe" will be shipped.

You can do this as often as you want throughout the month.

There is also the option to prioritise the items you would like to receive from your wardrobe.

The service also includes complimentary dry cleaning and repairs.

You can read the full terms and conditions of the subscription here.

Is it worth waiting until Black Friday to raid Amazon, or should you take advantage of the Prime Day sales today and tomorrow?

Business correspondent Paul Kelso asked a leading analyst whether Prime Day represents good value for consumers considering "there seems to be a sale on somewhere" at all times.

"Discounts are discounts," Rodney Zemmel, senior partner at McKinsey and Company, told him.

"[But] the levels of offers available tends to be a little less than [you see] around Thanksgiving and Black Fridays and Cyber Mondays."

Markets expect a series of interest rate cuts over the winter - yet those hoping mortgage deals are on a straight path down may be disappointed.

Swap rates, which dictate how much it costs lenders to lend, rose at the end of last week on fears the Middle East crisis could impact oil prices and cause inflation.

If that were to happen, the Bank of England may take longer to cut the base rate.

Smaller lenders such as Aldermore and Keystone today announced either rate increases or product withdrawals - and there are predictions more familiar names could soon follow suit.

Harps Garcha, directorat Brooklyns Financial, told industry news agency Newspage:"The days of waiting to see if rates fall further may be over for now. These increases were inevitable with swap rates going up over the past few days and continuing to rise today. If this continues, it won't be long before the larger lenders follow suit."

Hannah Bashford, directorat Model Financial Solutions, added: "These smaller lenders are susceptible to changes in swap rates so are usually the first to adjust but we may see larger lenders tweaking their rates over the next few days. Borrowers need to be vigilant."

The base rate and rates being offered on the high street are different - why?

Average rates being offered on the high street have fallen significantly in recent months - many sub-4% deals are now available.

This is below the 5% base rate set by the Bank of England, which acts as an anchor for savings and mortgage rates.

Lenders can do that because they're offering a loan for the long term, so their deals are based not just on the base rate now, but where they will be in a year or a few years' time.

If swap rates were to continue to rise, it could be that the base rate is cut to 4.75% in line with expectations in November, but rates being offered on the high street are ticking up.

Basically, section 21 notices - known as no-fault evictions - give landlords powers to evict tenants without needing to provide a specific reason.

They have been the subject of debate for years, with many arguing that they give too much power to landlords and leave tenants without long-term housing security.

The latest government figures show around 6,630 households were threatened with homelessness through section 21 notices between January and March alone - up slightly from the same period the year before.

Here's what you need to know about section 21

A section 21 notice allows landlords to end a tenancy without having to prove any fault on the part of the tenant, eg, unpaid rent, damage or nuisance.

They can be used to evict renters at the end of a fixed-term tenancy or during a tenancy with no fixed end date. A landlord must give the tenant at least two months' notice to leave the property, and they can't issue a section 21 notice within the first four months of the tenancy.

If the renter doesn't leave their home by the end date given, the landlord can make an application to a court for a possession order.

Section 21 notices differ from section 8 notices, which allow landlords to give between two weeks' and two months' notice to evict a tenant who has broken the terms of their contract.

When is a section 21 notice invalid?

A tenant will be able to defend themselves if the section 21 can be proved invalid.

This can happen if the landlord:

• Did not serve the notice correctly or sign it properly
• Did not follow tenancy deposit rules by placing the deposit in a government-approved protection scheme
• Failed to provide an energy performance certificate (EPC), gas safety certificate or "how to rent" guide
• Did not serve the notice at least two months' before the tenant has to leave the property
• Served the notice after a complaint about the property (retaliatory eviction)

A section 21 notice will also be invalid if the council has served an improvement notice on the property in the past six months, or if the property is categorised as a house in multiple occupation (HMO) and it does not have a HMO licence from the council.

What has the government said about no-fault evictions?

Housing campaigners claim no-fault evictions are a major contributing factor to rising homelessness and leave renters with the constant fear of eviction.

The Conservatives first pledged to ban section 21 evictions back in 2019 in a manifesto that promised a "better deal for renters".

Five years and much delay later, they're still in place.

But the Labour government hasvowed to improve and complete the set of proposals the Tories pledged, then watered down and then abandoned altogether before this year's general election.

Crucially, theRenters' Rights Bill (an updated version of the Tories' Renters' Reform Bill) will include a blanket ban on no-fault evictions for both new and existing tenancies, with the new system expected to be in place by next summer.

Landlord associations argue that the proposed banning of section 21s has led to fears that landlords may be discouraged from renting their properties in the first place or selling up before the legislation comes into force, reducing the number of homes on the market.

Read other entries in our Basically series...

Electricals gathering dust in junk draws could be the answer to the impending copper crunch.

There is copper worth about £266m in unused or binned tech, which is enough to provide 30% of the copper needed for the UK's planned transition to a decarbonised electric grid by 2030.

Each UK household is holding on to an average of 23 cables, which are at least 20% copper. But most Britons don't know how valuable these are - a survey found 44% of people didn't know copper is the most commonly used material in electric cables.

Anything with a plug, battery, or cable can be recycled with 26,000 recycling points around the UK.

Forget queuing for Oasis or Glastonbury tickets, the biggest online fight of the year is about to commence: securing a Christmas delivery slot.

Every year, thousands of hopefuls join a virtual queue for their chosen supermarket, hoping to secure a slot the week before the big day.

This year, Tesco has made thousands more available in the fortnight before 25 December. The supermarket has added 60 more delivery vans to its fleet, boosting capacity for customers.

And anyone signed up to an Anytime Delivery Saver plan or Click+Collect plan can get a week's head start with slots opening to this group at 6am on 5 November.

Slots open for all other customers on 12 November at 6am - one week earlier than last year.

Delivery Saver is Tesco's subscription-based delivery service designed to help reduce the cost of regular online grocery orders, with a range of plans running for six or 12 months and starting from £2.49 a month.

What about the other supermarkets?

You can already order with M&S - their food-to-order system went live on 24 September.

Waitrose has also opened its slots for customers; they cost £4 each, with a minimum spend of £40.

Others have yet to announce their plans.

Financial advisers are receiving a growing number of calls from clients wanting to cash in their 25% tax-free lump sum from their pension, ahead of the budget at the end of this month.

One adviser said it is because retirees are "terrified" the chancellor will begin to tax lump sums.

Mark Scott, director and independent financial advisor (IFA) at Positive Advisers, told Newspage: "If she does make changes, they will most likely start at the beginning of the next tax year.

"IFAs would be inundated with calls for help if this change is enacted, and the markets could see massive withdrawals, sparking a fall in values in the sell-off."

Colin Low, managing director at financial advice firm Kingsfleet, said he'd also had lots of calls from concerned clients: "This is proving to be a very difficult situation. We have had numerous calls from clients convinced that the new government will be reducing the access to tax-free cash on personal pensions.

"It's important to state that this is only hearsay and that is no way to shape the advice given to clients on one of the biggest financial planning decisions they will make."

People who did take their full tax-free entitlement should be aware this takes away the possibility of it growing in the future.

"For the government to continue to allow these rumours to persist is really poor," said Colin. "We are regulated in order to encourage wise long-term decisions with money but we are caught between a rock and a hard place here."

Ross Lacey, director and chartered financial planner at Fairview Financial Management, said he advises his clients not to make any "rash decisions".

"Historically, any changes made by government on things like this have included transitional protection, so that those who would already be affected by the new rules keep whatever rights they currently have," he said.

"Seeing as there's a greater emphasis on people providing for their own retirement and pensions already suffer with an image problem, we think it would be madness to make any changes to pensions that make them less attractive."

By Daniel Binns, business reporter

The value of the pound remains at its lowest in almost four weeks amid expectations the Bank of England will again cut interest rates soon.

On the currency markets this morning, £1 buys around $1.30 or €1.19 - similar to yesterday.

Latest figures suggest the markets have priced in a 90% chance of an interest cut in November, and expect more to follow this winter.

Such a prospect is unappealing to global investors, as lower interest rates would usually mean a lower return on their money.

This, in turn, can affect the value of a nation's currency.

The price of oil is also at a similar level to yesterday, with a barrel of the benchmark Brent crude hovering at just over $79 (£60), slightly down from yesterday.

The price surged in recent days amid fears over supplies as violence in the Middle East escalates.

While Israel's ground offensive in Lebanon is continuing, it has so far held off from launching new airstrikes against Iran as feared.

Meanwhile, the FTSE 100 is down 1.3%, while the FTSE 250 has slipped nearly 1%.

The overall slump in stock market performance has been blamed on China, after officials there unveiled a series of measures to boost the country's slowing economy - but which critics fear do not go far enough.

The top gainer on the FTSE 100 so far is tobacco giant Imperial Brands, which is up more than 4%.

It comes after the company, which has been boosted by sales of vape products and other cigarette alternatives, forecast revenue growth of up to 30% this year.

The worst performer is housebuilding firm Vistry Group, which is down almost 30% after announcing it was cutting its profit outlook by £80m due to increased costs.