Taylor Wimpey slumps to loss on £222m fire safety hit
It said this was largely due to an extra £222.2 million provision for fire safety measures.
The company also said full-year earnings would be lower than expected at £424 million after taking an unexpected £20 million charge for historical defective work by a former contractor.
Experts at AJ Bell said the latest cladding cost has seen Taylor Wimpey's total bill swell to more than £550 million in the wake of the Grenfell fire in 2017, which killed 72 people.
They estimated the cost to FTSE 100 and FTSE 250 housebuilders had now reached more than £3.5 billion.
Large housebuilders agreed in 2022 to pay to fix cladding issues on their properties following public and political pressure.
Taylor Wimpey's shares fell 5% on Thursday after its interim results laid bare the impact of the costs.
Jennie Daly, chief executive of Taylor, said: 'The safety of our customers remains our highest priority – this principle has consistently guided our approach, and we have increased our cladding fire safety provision to reflect findings from updated fire risk assessments and investigations in the first half.'
The group said it was also pushed to a loss by an £18 million payout after an investigation into information sharing in the sector by the UK competition watchdog.
Taylor was one of seven builders that recently agreed to pay a record £100 million between them as part of a package of commitments to address concerns following the probe by the Competition and Markets Authority into whether they shared commercially sensitive information.
In its latest results, Taylor said it saw 'softer' market conditions in the second quarter as affordability continues to hamper demand, particularly from first-time buyers.
'While affordability remains constrained, particularly amongst first-time buyers, lenders remain committed to the UK mortgage market and long-term fundamentals are positive, with significant unmet need for UK housing,' Ms Daly said.
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Daily Mail
38 minutes ago
- Daily Mail
What the Bank of England's interest rate cut to 4% means for your money
The Bank of England cut interest rates today from 4.25 per cent to 4 per cent. While 0.25 percentage point cut was widely predicted by financial analysts, the Bank of England's Monetary Police Committee was split, taking two rounds of voting to make the decision for the first time. In the second round, five members voted for the cut and four to keep the rate at 4.25 per cent. In the first round, member Alan Taylor voted for a bigger cut to 3.75 per cent, but then changed his vote to favour a 4.25 per cent. While it might spell good news for mortgage borrowers, it won't be received well by savers, as it might bring bank and building society savings rates down. Today's cut is the fifth since August 2024, with interest rates having fallen 1.25 percentage points from their 5.25 per cent peak. The last decision, on 19 June, was a hold. The next decision is on 18 September. We explain what the Bank of England's decision to cut rates to 4 per cent means for your mortgage and savings - and whether rates will be cut again soon. What does this mean for mortgage borrowers? Today's decision to cut the base rate to 4 per cent will be music to mortgage borrowers' ears, as a trend of falling interest rates tends to bring down mortgage rates over time. Those on tracker mortgages which move with the base rate will see an immediate cut in line with the 0.25 per cent reduction. But while we are likely to see some small fixed rate reductions in the coming days, the decision won't lead to big mortgage rate falls straight away for fixed-rate customers. This is because lenders usually base their mortgage pricing on the longer-term trajectory of interest rates, rather than reacting to individual base rate decisions. In addition, most borrowers are locked in to fixed-rate deals of two, three or five years, during which time their payments will not change. Between July and the end of December this year, an estimated 900,000 households will reach the end of their existing fixed rate term, according to UK Finance data. Many of those coming to the end of five-year fixes will have enjoyed mortgage rates between 1 and 2 per cent, taken at a time when interest rates were at rock bottom in the post-pandemic housing boom. Now, they face the prospect of remortgaging to a rate of around 4 per cent or more. Ravesh Patel, director and senior mortgage consultant at broker Reside Mortgages says: 'Lenders have largely priced in this decision in recent weeks, especially across two and five-year fixed mortgages. 'That said, the confirmation of a cut could improve market sentiment and lead to some modest reductions in fixed rates around 0.2 percentage points over the coming weeks as lenders compete for new business. 'Tracker mortgages will benefit straight away, with monthly repayments falling in line with the base rate cut. 'This may encourage some borrowers to consider tracker options again, especially if they believe further cuts are on the horizon.' Nicholas Mendes, mortgage technical manager at John Charcol also thinks the cut may give lenders more confidence to lower rates further. 'A quarter-point cut won't move the mortgage market dramatically, but it does keep the downward momentum going,' said Mendes. 'Lenders are likely to trim rates further to stay competitive, especially with some already pricing in another cut before the end of the year.' Markets are currently forecasting one further cut by the Bank of England before the end of the year, which could mean interest rates reach 3.75 per cent by Christmas. What next for mortgage rates? Mortgage rates have been trundling down of late. For those with the biggest deposits or equity, the lowest two-year fix is now 3.73 per cent while the lowest five-year fixed deal is 3.86 per cent. Someone buying with a 15 per cent deposit can now get a mortgage rate of 3.99 per cent and a £999 fee if they fix for two years with Nationwide Building Society. On a £200,000 mortgage being repaid over 25 years, that would equate to paying £1,054 a month. Borrowers wishing to know the future direction of mortgage rates may want to look at interest rate forecasts. Yesterday, Barclays said it thinks that the Bank of England's Monetary Policy Committee split will carry on with a 25 basis point rate cut once every three months until it settles at 3.5 per cent in February. There are some forecasts that suggest interest rates will fall further. HSBC and UBS for instance are forecasting that interest rates will fall to 3 per cent by the end of 2026. There are also some that think interest rates will stay higher. Analysts at Pantheon have forecast that interest rates will finish 2026 at 4 per cent. Fixed-rate mortgage pricing is largely based on Sonia swap rates - the inter-bank lending rate, based on future interest rate expectations. When Sonia swaps rise sufficiently it often results in fixed mortgage rates going up, and vice versa when they fall. Since the start of June five-year and two-year swaps have drifted downwards. Two-year swaps are now at 3.57 per cent and five-year swaps are at 3.61 per cent. 'While we could see best-buy rates dropping closer to 3.5 per cent in the months ahead, nothing is guaranteed,' says Mendes. 'A lot depends on inflation, labour market data, and wider global pressures. We've been here before and then seen things shift quickly. 'If inflation behaves, the base rate could fall to 3.5 per cent by early 2026, but the Bank has made it clear it won't rush.' What does this mean for savers? Now that the base rate has been cut to 4 per cent, it is all but certain savers will see the best savings rates plummet. The base rate affects how much interest savers can earn on their money. In general, savings rates rise when the base rate is rising, and fall when it is falling. Those who keep their cash in easy-access accounts are most at risk of rate cuts. CMC Invest* has already cut its three month bonus of 0.85 per cent on its easy-access cash Isa, bringing the underlying rate down to 4.59 per cent from a best-buy 5.44 per cent. The best easy-access accounts currently pay around 4.6 per cent while some accounts with restrictions pay up to 5 per cent. Andrew Hagger of website MoneyComms says: 'Easy-access deals will take a hit - maybe not falling by a full 0.25 per cent in all cases. 'The best buys may be trimmed by only 0.1 per cent to 0.15 per cent in some cases to say near the top of the tables.' When it comes to fixed rate bonds the August cut has probably already been priced in - 'but banks will be looking for clues in the Bank of England commentary as to if and when rates will fall further this year,' says Hagger. What next for savings rates? If the base rate falls to 3.75 per by the end of this year, as markets are currently predicting, it is forecast that easy-access rates will fall below 4 per cent for the first time since the summer of 2023 and fixed-rate bonds will fall to just above 4 per cent. The best one-year fixed-rate bond currently pays 4.5 per cent. This is down from a high of 6.2 per cent in October 2023. Andrew Hagger says: 'I think there's slight a chance we may see one further 0.25 per cent cut in November or December - leaving the base rate at 3.75 per cent.' 'If this is the case, then come the end of 2025 I think the top easy access accounts, without restrictions, will be paying in the region of 3.8 per cent to 3.9 per cent with the best fixed rates around 4 per cent to 4.1 per cent for one year.' What should savers do now? People should keep a close eye on their savings, whether they are stashed in an easy-access account, fixed-rate account or an Isa. If your money is not working hard enough for you or earning interest at a rate of less than the rate of consumer price inflation, 3.6 per cent, you should consider moving it to an account paying a better rate. Rachel Springall says: 'It is essential that savers do not wait around for too long to snap up the top rates on the market, particularly if they use their pots to supplement their monthly income. 'Cash Isas remain an attractive choice for savers, but in bad news the rates have taken a hit over the past year, with the average easy access Isa rate falling by 0.46 per cent, a similar drop to its non-Isa counterpart.' While Andrew Hagger says: 'If you've got some spare cash that you don't need for a year or two, then locking some away in a fixed rate bond makes sense as fixed rates are unlikely to increase from their current levels for a good while yet.' Best savings rates and how to find them The best easy-access savings accounts with no restrictions pay around 4.6 per cent. Atom Bank is offering a market-leading easy-access deal paying 4.6 per cent. Someone putting £10,000 in this account could expect to earn £460 in interest after a year, if the rate remains the same. Those with cash they won't immediately need over the next year or two should consider fixed-rate savings. The best one-year deal is offered by Vanquis Bank paying 4.5 per cent. A saver putting £10,000 in this account will earn a guaranteed £450 interest over one year. It comes with full protection under the Financial Services Compensation Scheme up to £85,000 per person. Union Bank of India is offering 4.47 per cent, while Stream Bank if paying 4.41 per cent. All offer FSCS protection. The best two-year bond pays 4.48 per cent and comes from JN Bank. This provider also offers the best three and five-year bonds which both pay 4.45 and 4.52 per cent espectively. Savers should also strongly consider using a cash Isa to protect the interest they earn from being taxed. Trading 212* is now offering a market-leading 4.89 per cent on its easy-access cash Isa for new customers. How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
The Independent
an hour ago
- The Independent
Interest rates live: Rate cut expected by Bank of England despite inflation and Trump tariffs
The Bank of England (BoE) is expected to cut interest rates today down to 4 per cent, despite concerns over still-high inflation and Trump tariffs coming into force. The move would mark a third cut overall this year, and the fifth since the interest rates peaked at 5.25 per cent in August 2024. Members on the Monetary Policy Committee (MPC) are likely to be divided on whether to cut the rate, with divisions over both holding until later in the year - to combat the rate of inflation - and giving a double cut now, which could boost business productivity and employment. Any cut would also be a potential longer-term boost to homeowners, as the mortgage market may price in future lower rates, but would give concerns to savers as the rate at which their money earns interest would decrease. Elsewhere, Halifax released its latest UK house price data showing where property fees have risen fastest, while stock markets including the FTSE 100 are reacting to Trump tariffs coming into effect. Interest rates chart: The fall and rise in the UK Here's a more graphic representation of just how high interest rates rose as inflation spiralled under the last government - and how rates are still only slowly coming back down under this one. For over a decade, borrowing money was super cheap, very nearly free. Anyone with repayments to make between 2020 and 2023 got a bit of a shock to the system if their deal was tracking the base rate, that's for sure. But we are, as the right side of the chart shows, on a steady path downwards in the past year or so. 'Gradual and careful,' the BoE calls it. Plenty say that even this is too fast though, with inflation having been rising once more of late. 7 August 2025 11:47 Supermarket wars continue with new cheapest store The UK has a new cheapest supermarket, if you've not already heard - Aldi lost the title for the first time in two years. You can read more about that here including how loyalty cards impact (or don't!), and you can vote in our poll below to tell us where you shop too! Karl Matchett7 August 2025 11:40 Households still cautious over future tax burdens - expert Aside from being a negative for savers, most households will generally see an interest rate cut as a positive. However, the savings it makes them on bills and borrowing may not feed through to spending immediately, says one expert - because of fears about what lies ahead. That's particularly prevalent given talk of more taxes in the Budget this autumn. 'Investors are primed for an interest rate cut from the Bank of England later today, given the highly sluggish nature of the economy, and the rising unemployment rate,' said Susannah Streeter, head of money and markets, Hargreaves Lansdown. 'There will be hopes that if loans become cheaper, it will help boost consumer and business confidence but there's a long way to go. In the meantime, speculation over potential tax rises in the Autumn Budget may keep households and companies cautious, given the uncertainty over where extra burdens may land. 'There will be a lot of focus on the voting split on the Monetary Policy Committee, given that the views are highly unlikely to be unanimous, and the leaning of members could help indicate the speed of future rate cuts.' Karl Matchett7 August 2025 11:30 Interest rates and mortgages: Saving money, or overpay the difference? If you're on a tracker mortgage rate (or if you're soon to negotiate down a deal from a couple of years ago) then an interest rate cut today could be to your benefit, saving a bit of outgoing money. However, if you still put that into paying off your property (if your terms allow - always check!) then it can save you way more in the long run. Jinesh Vohra, CEO of mortgage app Sprive, said: 'Around one in five (17 per cent) mortgage holders are currently on variable rate mortgages, and if the Bank of England cuts the base rate today, their mortgage rate will drop as a result. 'For example, someone with a £150,000 mortgage at 4.25% over 25 years currently pays around £812 a month. If the rate is cut by 0.25%, their monthly payment would fall to £791 — a saving of £21 a month, or £252 a year. 'While it might be tempting to enjoy that saving, those who can afford to should consider maintaining their current payment level and using the £21 saving to overpay their mortgage instead. Doing so could save them £4,280 in interest and help clear their mortgage 1 year and 1 month earlier. 'Overpaying is one of the most powerful ways to become mortgage-free faster. Even small, regular overpayments can knock years off the term and save thousands in interest — helping mortgage holders reach financial freedom sooner, without stretching their budget.' Karl Matchett7 August 2025 11:20 Companies latest: Deliveroo, WPP, InterContinental Here's a quick wrap of the latest companies announcements and financials this morning: Deliveroo saw sales increase in the first half of the year with more people ordering takeaways, but the company swung to a loss even so. It is set for a takeover by DoorDash later this year in a £2.9bn deal. Advertising firm WPP has cut 7,000 jobs and saw profits drop from £338m a year ago to £98m this year as a tough year continues. Shares were down 2.7 per cent this morning and have dropped by more than half this year. And Holiday Inn's owner, InterContinental Hotels, said a key metric in revenue per available room has slowed - but overall pre-tax profits rose 13 per cent from last year. Karl Matchett7 August 2025 11:07 Mortgage market facing a reckoning as super-cheap deals come to an end Aside from the questions of inflation and economic growth, there's one additional big reason why lots of people hope for interest rate cuts, now and in the coming months. Many thousands of homeowners are set to see their five-year fixed term mortgage deals expire in the second half of 2025 - and given interest rates were 0.1 per cent for most of 2020, it's fair to say the increased payments they face will be a big shock to the system. One mortgage broker suggests the fall-out will dampen down house prices and many need to reassess their financial positions. Ranald Mitchell, from Charwin Mortgages, said: 'For many borrowers, 2025 will prove the hangover after the house party. Millions are waking up to find their cheap-as-chips pandemic mortgage deals have vanished, replaced with monthly payments that bite. "For five-year fixers coming off sub-2% rates, some are facing £300–£500 extra a month. It's not just a shock, it's a financial slap. This won't crash the market, but it will chill it. Potential movers may pause and reflect on their new monthly financials. The days of borrowing big and breezing through affordability checks are over.' Karl Matchett7 August 2025 10:40 FTSE 100 an outlier as global stock markets rise Across most global markets, shares were on the up overnight and today despite those tariffs coming into effect - the UK's FTSE 100 is very much an outlier there, as AJ Bell's Danni Hewson explains. 'The FTSE 100 is struggling to make meaningful progress this week, running to stand still as investors weigh the latest economic, geopolitical and corporate developments,' says Ms Hewson. 'Not helping today was several heavyweight names trading without the rights to their dividend. This held the index back despite gains on Wall Street and across Asia. Investors are largely greeting widespread tariffs taking effect with a shrug. 'The exception again was India, with the Trump administration ordering a big increase in tariffs to punish the country for buying and selling Russian oil.' Karl Matchett7 August 2025 10:20 UK not facing threat of stagflation - bank expert With economic growth still a struggle to find, you may hear the term 'stagflation' being used. That shouldn't the case, says one industry expert - it's not the situation the UK faces right now. Will Hobbs, from Barclays private bank and wealth management, said current indicators do not suggest the UK is any more at risk of that than previously. 'Given the current margins for error in the UK's economic dataset, it remains possible to tell almost any story you want on the UK's economic outlook. Our optimistic [view] rests in part [with] household balance sheet and rising real incomes, both of which provide a buffer against broader uncertainty. 'Of course, there are multiple factors to consider. We, like the consensus, expect the Bank of England to cut rates, likely following a fairly even vote split. 'We would resist overuse of the term 'stagflation' to describe the UK's position. The misery indices (unemployment plus inflation), looks unremarkable today relative to the experience of the last century.' Karl Matchett7 August 2025 10:00 How interest rates impact on your money, savings and bills If you have money in a savings account, it's the other side of the see-saw to mortgages: rates going down mean you'll earn less interest. As there's still a bit of a fierce battle raging among banks and building societies for customers, it's still possible to get good deals if you are happy to lock in money for a fixed period of time or contribute regular amounts, with several offering around 4.5 per cent or even more. There are always terms and conditions to be met, so ensure it suits your circumstances, but the opportunity remains there to save and earn money at a better rate than inflation, which currently sits around 3.5 per cent. Do be aware of the amount of interest you can earn without being taxed, though. If your savings account interest rate isn't fixed, banks can always change the rate you get up or down. A tax-efficient way of saving is to use a Cash ISA, where everyone has a £20,000 personal allowance each year. Credit card repayments and bank or car loans are of course also affected by interest rates, as the amount they all charge for borrowing will be altered. For credit card users, it's always ideal to pay off the full amount each month if you are able to, to avoid interest being charged at all - depending on your circumstance and the account type, they can be one of the more costly ways to borrow. Karl Matchett7 August 2025 09:40 What do interest rate cuts mean for mortgages? Broadly speaking, as increasing interest rates over the last few years have meant mortgage repayments going up, then the reverse should also hold true: lower rates, lower repayments. However, there are several important things to note. Firstly, that it's only the interest on the repayments which should change — your capital repayments will naturally decrease the more you pay off your mortgage. Secondly, the base rate isn't the rate you are necessarily charged by your bank or lender for the mortgage — they'll base theirs off the BoE rate but it doesn't have to be the same. More than half a million people do, however, have a mortgage which tracks the BoE interest rate and those will see an immediate change. Far more have fixed term deals which expire each year and need renegotiating. Additionally, if you've got a fixed term on a mortgage plan, you won't see a change in any case until that comes to an end. Karl Matchett7 August 2025 09:20
Reuters
2 hours ago
- Reuters
FTSE 100 slips ahead of BoE rate decision, mixed earnings weigh on sentiment
Aug 7 (Reuters) - British benchmark index FTSE 100 slipped on Thursday, as investors weighed a mixed bag of corporate results and awaited the Bank of England's rate decision due later in the day. The blue-chip FTSE 100 (.FTSE), opens new tab was down 0.2% as of 0927 GMT. The BoE looks poised to cut interest rates for the fifth time in 12 months on Thursday, but lingering inflation concerns could divide policymakers and impact future rate decisions. Investors will closely watch if the central bank maintains its "gradual and careful" tone on policy easing. In the market, aerospace and defence stocks (.FTNMX502010), opens new tab led the sectoral decline, down 2.6%, after German defence company Rheinmetall ( opens new tab missed quarterly results expectations, dragging down European peers. Britain's BAE Systems (BAES.L), opens new tab and Babcock (BAB.L), opens new tab were among the top losers in the FTSE 100, down 4.4% and 4.5% respectively. Hikma Pharmaceuticals (HIK.L), opens new tab fell the most in the benchmark index, down 6.7%, after a strong euro prompted the group to lower its margin outlook for its injectables unit. Healthcare stocks (.FTNMX201030), opens new tab fell 1.1%, with AstraZeneca down (AZN.L), opens new tab 1.5%. Adding to the sector's woes, U.S. President Donald Trump said on Tuesday that Washington would initially place a "small tariff" on pharmaceutical imports, eventually increasing it to 250%. Additionally, sterling rose against a weakening dollar, which further pressured the export-oriented companies. On trade, Trump's higher tariffs of 10% to 50% on dozens of trading partners kicked in on Thursday, testing his bid to shrink U.S. trade deficits without triggering inflation, supply chain disruptions or retaliation from trading partners. Meanwhile, the domestically focused midcap FTSE 250 (.FTMC), opens new tab rose 0.3%, with Harbour Energy's (HBR.L), opens new tab 12.6% jump after the oil and gas producer raised its annual forecast. Among other individual stocks, InterContinental Hotels Group (IHG) (IHG.L), opens new tab rose 6.7% following the Holiday Inn owner reported a jump in first-half profit. WPP (WPP.L), opens new tab fell 2.7%, touching its lowest since July 2009, after the British ad group halved its interim dividend.
