Banks want to lend you a bigger mortgage - but is that a good idea? This is Money podcast
Major banks are tweaking their rules to allow borrowers to get bigger mortgages, while a new upstart lender is offering seven times salary home loans.
Is this a welcome easing of the too tight rules to suit people's needs or the start of a recipe for financial disaster?
On this week's podcast, Georgie Frost, Lee Boyce and Simon Lambert dive into the world of mortgages and look at whether lenders are coming up with a solution or creating more problems.
Is this a repeat of the heady days before the financial crisis, have stress tests helped borrowers avoid the stress of rising rates, and would you even want a seven times income mortgage?
Plus, is the Bank of England about to aggressively cut interest rates in the wake of Donald Trump's tariff chaos.
Also on this episode, why our retirement expert Sir Steve Webb is loving his new solar panels and how to work out what kind of investor you are and how much risk you should take.
And finally, a definitive list of the 50 best British cars of all time has been released, do you agree with it?
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South Wales Argus
31 minutes ago
- South Wales Argus
Reeves signs off on £14bn to build new nuclear plant Sizewell C
The Chancellor is set to confirm the funding at the GMB Congress on Tuesday. Energy Secretary Ed Miliband said new nuclear power capacity was needed to deliver a 'golden age of clean energy abundance'. Chancellor of the Exchequer Rachel Reeves is set to confirm £14.2 billion of investment in the new Sizewell C nuclear plant(Stefan Rousseau/PA) Trade unions welcomed the move, which the Treasury said would go towards creating 10,000 jobs, including 1,500 apprenticeships. But the head of a campaign group opposing the plant criticised the decision to commit the funding, saying it is still not clear what the total cost will be. Nuclear plants are seen as increasingly important electricity sources as the Government tries to decarbonise Britain's grid by 2030, replacing fossil fuels with green power. The last time Britain completed one was in 1987, which was the Sizewell B plant. Hinkley Point C, in Somerset, is under construction and is expected to produce enough power for about six million homes when it opens, but that may not be until 2031. The Energy Secretary said: 'We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis. 'This is the Government's clean energy mission in action – investing in lower bills and good jobs for energy security.' It will get the UK off the 'fossil fuel rollercoaster', he separately told The Guardian. 'We know that we're going to have to see electricity demand at least double by 2050. All the expert advice says nuclear has a really important role to play in the energy system. 'In any sensible reckoning, this is essential to get to our clean power and net zero ambitions.' The joint managing directors of Sizewell C, Julia Pyke and Nigel Cann, said: 'Today marks the start of an exciting new chapter for Sizewell C, the UK's first British-owned nuclear power plant in over 30 years.' At the peak of construction, Sizewell C is expected to provide 10,000 jobs and the company behind the project has already signed £330 million worth of contracts with local businesses. The plant, which will power the equivalent of six million homes, is planned to be operational in the 2030s. The Government is also due to confirm one of Europe's first small modular reactor programmes and will invest £2.5 billion over five years in fusion energy research as part of plans to boost the UK's nuclear industry. The GMB union said giving Sizewell C the go-ahead was 'momentous'. Ed Miliband said new nuclear power capacity was needed to deliver a 'golden age of clean energy abundance' (Kin Cheung/PA) Regional Secretary Warren Kenny said: 'Nuclear power is essential for clean, affordable, and reliable energy – without new nuclear, there can be no net zero. 'Sizewell C will provide thousands of good, skilled, unionised jobs and we look forward to working closely with the Government and Sizewell C to help secure a greener future for this country's energy sector.' Mike Clancy, general secretary of Prospect, said: 'Delivering this funding for Sizewell C is a vital step forward, this project is critical to securing the future of the nuclear industry in the UK. 'New nuclear is essential to achieving net zero, providing a baseload of clean and secure energy, as well as supporting good, unionised jobs. 'Further investment in SMRs and fusion research shows we are finally serious about developing a 21st-century nuclear industry. All funding must be backed up by a whole-industry plan to ensure we have the workforce and skills we need for these plans to succeed.' Alison Downes of Stop Sizewell C said ministers had not 'come clean' about the full cost of the project, which the group have previously estimated could be some £40 billion. 'There still appears to be no final investment decision for Sizewell C, but £14.2 billion in taxpayers' funding, a decision we condemn and firmly believe the government will come to regret. 'Where is the benefit for voters in ploughing more money into Sizewell C that could be spent on other priorities, and when the project will add to consumer bills and is guaranteed to be late and overspent just like Hinkley C? 'Ministers have still not come clean about Sizewell C's cost and, given negotiations with private investors are incomplete, they have signed away all leverage and will be forced to offer generous deals that undermine value for money. Starmer and Reeves have just signed up to HS2 mark 2.'
North Wales Chronicle
31 minutes ago
- North Wales Chronicle
Creditors table £17bn plan for Thames Water but call for regulatory leniency
Creditors including US and UK investment firms – such as Aberdeen, Elliott Management and BlackRock – have submitted a plan to regulator Ofwat to overhaul £17 billion of Thames Water's debts, including investing another £3 billion in new equity and a further £2 billion of funding. It would also involve writing off 'several billion' pounds' worth of debt and a 'complete loss for existing shareholders' in what they claim would be the 'largest financial loss suffered by investors on an infrastructure asset in British history'. Under the proposals submitted to Ofwat, customer bills would not increase by more than the regulator has already approved over the next five years. But the creditors are asking for leniency on performance targets and compliance, and warned that without a 'regulatory reset' Thames Water's 'pollutions, asset health deterioration, and customer service levels are likely to worsen'. They are holding intensive talks with Ofwat in the hope of securing approval for their deal in early July. The plans come after US private equity giant KKR last week pulled out of a rescue deal to inject much-needed cash into Britain's biggest water supplier, which has 16 million customers and is sinking under £19 billion of debt. It threw the future of Thames Water into doubt once more and raised the threat of temporary nationalisation by the Government if a deal cannot be agreed. A spokesperson for the creditors said their turnaround plan was 'designed to fix the root causes of Thames Water's problems, restore its balance sheet, rebuild customer trust, and provide the financial investment and operational capabilities to fix the fundamentals of the business once and for all'. They added: 'The plan seeks to break from the patterns of the past by delivering customers' priorities and improved outcomes for the environment in the shortest possible timeframe. 'The creditors include some of the largest investors in UK water companies, as well as UK and global infrastructure more broadly, with a proven track record of corporate turnarounds and long-term stewardship. 'These investors have the funding and experience required to deliver a transformation of the company's performance which is intended to mark a departure from past failings, creating a 'new' Thames Water that works effectively alongside Government, regulators, and customers to deliver for the environment and economic growth.' #WaterCompany senior executives will be banned from receiving a bonus if they breach standards relating to consumer and environmental matters, criminal liability and financial resilience, under new powers coming into force today. Find out more: — Ofwat (@Ofwat) June 6, 2025 The creditors are the bondholders who effectively own Thames Water after the High Court earlier this year approved a financial restructuring through a loan of up to £3 billion to ensure it can keep running until the summer of 2026. Other investment and pension firms in the group include Apollo Global Management, M&G and Silver Point Capital. As part of their plans, the creditors would appoint a new board at Thames Water to run the utility. They would commit to spending £20.5 billion over the next five years, as agreed under the current five-year plan with Ofwat. But they are calling for a 'pragmatic approach' to regulation – including 're-basing incentives and performance targets – and 'realistic levels of compliance'. 'Without the regulatory support requested, the creditors believe that customers will remain exposed to the risk of a continued 'doom loop' of underperformance and non-compliance,' according to the creditors. 'A clean slate that would see Thames Water and investors held to account to deliver an ambitious trajectory for the company's return to compliance,' they added. A spokeswoman for Ofwat said the regulator had been 'engaging regularly' with Thames over the funding plans. 'We have commenced a thorough review of the submission from the group of senior creditors,' Ofwat said. 'The submission includes their turnaround plans, approach to financial resilience and proposals for governance. 'Our focus is on assessing whether the plans are realistic, deliverable and will bring substantial benefits for customers and the environment.' Liberal Democrat MP Charlie Maynard, who has previously appealed against a £3 billion rescue deal for the utility, said: 'What will it take for the Government and the regulator to put a stop to this horror show Thames Water customers are forced to suffer through and pay for? 'Having created a mountain of debt, all at customers' expense, this latest plan for Thames Water would let them continue to pollute with impunity.' He said his party's plan would be to put Thames Water into special administration and then have it become mutually owned by its customers.
North Wales Chronicle
31 minutes ago
- North Wales Chronicle
Reeves signs off on £14bn to build new nuclear plant Sizewell C
The Chancellor is set to confirm the funding at the GMB Congress on Tuesday. Energy Secretary Ed Miliband said new nuclear power capacity was needed to deliver a 'golden age of clean energy abundance'. Trade unions welcomed the move, which the Treasury said would go towards creating 10,000 jobs, including 1,500 apprenticeships. But the head of a campaign group opposing the plant criticised the decision to commit the funding, saying it is still not clear what the total cost will be. Nuclear plants are seen as increasingly important electricity sources as the Government tries to decarbonise Britain's grid by 2030, replacing fossil fuels with green power. The last time Britain completed one was in 1987, which was the Sizewell B plant. Hinkley Point C, in Somerset, is under construction and is expected to produce enough power for about six million homes when it opens, but that may not be until 2031. The Energy Secretary said: 'We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis. 'This is the Government's clean energy mission in action – investing in lower bills and good jobs for energy security.' It will get the UK off the 'fossil fuel rollercoaster', he separately told The Guardian. 'We know that we're going to have to see electricity demand at least double by 2050. All the expert advice says nuclear has a really important role to play in the energy system. 'In any sensible reckoning, this is essential to get to our clean power and net zero ambitions.' The joint managing directors of Sizewell C, Julia Pyke and Nigel Cann, said: 'Today marks the start of an exciting new chapter for Sizewell C, the UK's first British-owned nuclear power plant in over 30 years.' At the peak of construction, Sizewell C is expected to provide 10,000 jobs and the company behind the project has already signed £330 million worth of contracts with local businesses. The plant, which will power the equivalent of six million homes, is planned to be operational in the 2030s. The Government is also due to confirm one of Europe's first small modular reactor programmes and will invest £2.5 billion over five years in fusion energy research as part of plans to boost the UK's nuclear industry. The GMB union said giving Sizewell C the go-ahead was 'momentous'. Regional Secretary Warren Kenny said: 'Nuclear power is essential for clean, affordable, and reliable energy – without new nuclear, there can be no net zero. 'Sizewell C will provide thousands of good, skilled, unionised jobs and we look forward to working closely with the Government and Sizewell C to help secure a greener future for this country's energy sector.' Mike Clancy, general secretary of Prospect, said: 'Delivering this funding for Sizewell C is a vital step forward, this project is critical to securing the future of the nuclear industry in the UK. 'New nuclear is essential to achieving net zero, providing a baseload of clean and secure energy, as well as supporting good, unionised jobs. 'Further investment in SMRs and fusion research shows we are finally serious about developing a 21st-century nuclear industry. All funding must be backed up by a whole-industry plan to ensure we have the workforce and skills we need for these plans to succeed.' Alison Downes of Stop Sizewell C said ministers had not 'come clean' about the full cost of the project, which the group have previously estimated could be some £40 billion. 'There still appears to be no final investment decision for Sizewell C, but £14.2 billion in taxpayers' funding, a decision we condemn and firmly believe the government will come to regret. 'Where is the benefit for voters in ploughing more money into Sizewell C that could be spent on other priorities, and when the project will add to consumer bills and is guaranteed to be late and overspent just like Hinkley C? 'Ministers have still not come clean about Sizewell C's cost and, given negotiations with private investors are incomplete, they have signed away all leverage and will be forced to offer generous deals that undermine value for money. Starmer and Reeves have just signed up to HS2 mark 2.'
