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☆ How interest rates impact your money — from savings to mortgages
▼ + stars: | 2023-08-04 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +4 min

The world of central banks and their policies, which include interest rates, may seem abstract — but they affect everyone. Interest rates — the rate at which you are charged or rewarded — are set by central banks, like the Fed or Bank of England. Pros and consHow consumers are affected by interest rates varies according to whether rates are higher or lower. On the flip side, higher interest rates can boost your savings, Mould added. Interest rates versus inflationInterest rates often go hand in hand with inflation (rising prices).

Persons: James McManus, —, Sarah Coles, Hargreaves Lansdown, Russ Mould, AJ Bell, Mould, McManus Organizations: CNBC, . Federal Reserve, European Central Bank, Bank of England, Fed

☆ Britain's house prices are slumping as mortgage rates soar — and there could be worse to come
▼ + stars: | 2023-07-07 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +4 min

The average U.K. property now costs £285,932 (£364,490), down from a peak of £293,992 in August 2022. The summer is likely to see price cuts become even more widespread, and we may well see house prices fall more significantly. The summer is likely to see price cuts become even more widespread, and we may well see house prices fall more significantly," she added. In its latest global housing index released Wednesday, the real estate company said U.K. house prices fell 3.1% annually in the first quarter. Mortgage rates continue to rise

Persons: Kim Kinnaird, BOE, Sarah Coles, Hargreaves, Hargreaves Lansdowne Sarah Coles, Hargreaves Lansdowne, Coles, Nathan Stirk, Sellers, Liam Bailey, Knight Frank Organizations: Bank of England, Anadolu Agency, Getty, Hargreaves Lansdowne, CNBC, Mortgage Locations: Halifax

☆ Savers should be cheering higher interest rates. So why are they unhappy?
▼ + stars: | 2023-07-06 | by ( Anna Cooban | ) edition.cnn.com time to read: +6 min

London CNN —When central banks raise interest rates, mortgage borrowers can expect higher monthly repayments, while savers are supposed to be rewarded with bigger returns on their deposits. In Asia, the picture is less uniform: China cut its benchmark lending rate last month, adding to recent reductions in other interest rates, and Japan has kept its main interest rate negative in a bid to stimulate demand. However, rates on savings accounts there are closer to the central bank’s main rate than in other major economies. “While interest rates were ultra-low, the mortgage market was incredibly competitive, so [banks] were operating on unusually small margins between savings rates and mortgage deals… so they’re busy filling their boots,” she said. The top 100 US money market funds tracked by Crane Data are offering an average annual interest rate of 4.94%.

Persons: Nathan Howard, Jeremy Hunt, Sarah Coles, Hargreaves Lansdown, ”, Christopher Furlong, Crane, Peter Crane, they’ve Organizations: London CNN, Federal Deposit Insurance Corporation, US Federal Reserve, Bloomberg, Getty, European Central Bank, of, CNN, Getty Images Bank, Finance, Bank of England’s, HSBC, Barclays, Crane Data, Bank of England, “ Locations: Europe, United States, United Kingdom, Asia, China, Japan, South Korea

☆ Britain is facing a mortgage crisis. There are no easy answers
▼ + stars: | 2023-06-23 | by ( Anna Cooban | ) edition.cnn.com time to read: +6 min

Mortgage painThe announcement comes a day after the Bank of England raised interest rates by half a percentage point to help bring down stubborn inflation. More than 2 million UK mortgage holders paying a fixed interest rate are facing an increase of hundreds of pounds in monthly repayments when they are forced to refinance this year and next. Many borrowers bought their homes when mortgage rates were closer to 1% or 2%. That sets the country apart from other major economies, including the United States, where on both measures inflation has started to ease. After the latest rise in interest rates Thursday, Hunt said the government would “stick to [its] guns” on keeping rates high to tame high prices.

Persons: Rishi Sunak, Jeremy Hunt, Sarah Coles, Hargreaves Lansdown, ”, Matt Hammerstein, David Duffy, Debbie Crosby, James Manning, ” Max Mosley, Jake Berry, Sunak, Liz Truss, Brexit, Mark Carney, Charlie Bean, Hunt, ” — Hanna Ziady Organizations: London CNN, UK Treasury, HSBC, Lloyds Banking Group, Barclays, BCS, CNN, Bank of England, National Institute of Economic, Social Research, Virgin Money, Conservative Party, Institute for Fiscal Studies, European Union, Bank of, Daily Telegraph, BBC Radio Locations: United Kingdom, United States, Britain

☆ Banking in the metaverse? A.I. could be about to change the way you manage your money
▼ + stars: | 2023-05-02 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +3 min

Users often don't even notice when AI is involved, adds Sarah Coles, head of personal finance at Hargreaves Lansdown. "For example, AI is used by banks to track spending, and automatically alert people when they spend, or reach a specific level in their account. Kimberly Dillon, vice president for brand at AI-powered financial services app Cleo, also believes new money management tools could emerge. Many banks and financial services providers are establishing a presence in the metaverse," she said. Chatbots can often execute basic financial interactions, for example, and AI tools can set off alarm bells around suspected fraud, she explained.

☆ A vacation that promised to save Brits more than $200 on their bills sold out in 24 hours A vacation that promised to save Brits more than $200 on their bills sold out in 24 hours
▼ + stars: | 2022-10-25 | by ( Anna Cooban | ) edition.cnn.com time to read: +3 min

London CNN Business —A winter vacation package that claimed it could save Brits more than £200 ($229) on their soaring bills for rent, food and fuel sold out within 24 hours this week. EasyJet (ESYJY) holidays, owned by low-cost British airline EasyJet (ESYJY), launched its 28-day “Escape the UK” vacation package to Hurghada, Egypt, on Monday, pitching it to consumers who work remotely. Brits are also struggling to keep the lights on as their energy bills have soared. But Brits who’ve booked onto the vacation package won’t necessarily save money, Sarah Coles, personal finance analyst at Hargreaves Lansdown, told CNN Business. Coles added that household energy bills include a standing charge, which must be paid even if no energy is used.

☆ What do tax cuts and market chaos mean for young Brits? 3 experts give their advice
▼ + stars: | 2022-10-03 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +4 min

His plan includes widespread tax cuts, fewer rules and regulations for businesses and the removal of a cap on bonuses for bankers. Google searches like "do the tax cuts help me" skyrocketed, while outrage was rife on social media. Do the tax cuts equal more cash in hand? The majority of first-time buyers fall below this threshold and therefore won't benefit from the cuts, Jobson said. "The change mainly benefits high-earning first-time buyers and those with sufficient backing from the bank of mum and dad," he added.

☆ UK lenders halt mortgage deals to customers after market chaos
▼ + stars: | 2022-09-27 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +3 min

Oli Scarff | Getty Images News | Getty ImagesLONDON - U.K. lenders Virgin Money, Halifax and Skipton Building Society pulled some of their mortgage deals to customers after the tumult in British bond markets. Virgin Money and Skipton Building Society temporarily paused mortgage offers for new customers, while Halifax — owned by the Lloyds Banking Group — is planning to halt any mortgage products with fees where lower interest rates are usually offered. Skipton Building Society said they had paused their products in order to "reprice following the market response over recent days." Markets have begun pricing in a base rate rise to as high as 6% for next year, from 2.25% currently, raising concerns among mortgage lenders and borrowers. "Households refinancing a two-year fixed rate mortgage in the first half of next year will see monthly repayments jump to about £1,490 early next year, from £863 when they took on the mortgage two years prior."

The British pound plunged to a record low against the U.S. dollar Monday. The pound, historically one of the strongest currencies in the world, fell to as low as $1.04 before bouncing back to approximately $1.07. For most of the past few decades, the pound averaged a price of about $1.50 against the dollar. The decline in the British pound in itself won't have a direct impact on the U.S. economy, experts say. But as the value of the pound has dropped, the value of the U.S. dollar has reached all-time highs.

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