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Daily Mirror
5 days ago
- Business
- Daily Mirror
Anyone with £10,000 savings given £300 warning to act today over Bank of England change
The Bank of England is expected to cut interest rates to four per cent tomorrow - and it could make a big difference anyone with savings Financial gurus have urged individuals to act immediately as the Bank of England is anticipated to slash interest rates to four per cent tomorrow (Thursday), suggesting it could result in a £300 difference for savers. A finance specialist has cautioned that those who don't move swiftly may find themselves shut out from the competitive rates currently available on savings accounts for months or even years. Some analysts predict that the Bank of England might further decrease interest rates to 3.5 per cent by the end of 2025. One expert warns that failing to transfer £10,000 today could lead to an annual loss of £300. Antonia Medlicott, Managing Director of financial education specialists Investing Insiders, stated: ''Savers risk missing out on hundreds a year in interest if they delay. We're at a tipping point where savings accounts still offer rates above 5.5 per cent, but those deals are likely to vanish fast. ""In fact, recent analysis by Moneyfacts has revealed that switching £10,000 into an account with a top interest rate now, could earn the saver more than £300 extra a year compared to the average rate within an ISA, which currently stands at just 2.7 per cent. "Savers currently earning under 4.5 per cent are urged to switch now to prevent leaving money on the table, with economists currently predicting further cuts in November, possibly reaching as low as 3.5 per cent by the end of this year. " While all savers should shop around for the best deals, Antonia cautions that procrastination could lead to missed opportunities. She also highlighted the top accounts currently available. Antonia stated: "Banks are quick to adjust interest rates on savings accounts downwards, usually much faster than they increase. Most people are unaware of how quickly savings rates change. "She further advised: "The public should act quickly. The top interest rate outside of a Cash ISA is currently six per cent at Santander; however, this is a bonus rate with restrictions that savers should make themselves aware of. ''. "Within a Cash ISA, the top rate is currently 5.44 per cent with CMC Invest, which is still excellent, and the advantage with this account is that any gains are sheltered from tax. ISA uptake and switching rates are lowest in parts of the North West, Wales, and East Midlands, leaving Brits in these areas particularly vulnerable to falling rates this week." Lastly, Antonia emphasised the significance of utilising an ISA allowance to help individuals save more effectively. She added: "Remember to utilise ISA allowances as cuts to Capital Gains Tax allowance will mean more and more people are pulled into paying tax. This is especially true for higher-rate taxpayers who are urged to prioritise ISAs over standard savings accounts due to the reduced rate on the personal allowance." In anticipation of the Monetary Policy Committee's base rate decision tomorrow, Investec Save has forecast a reduction in the Bank of England base rate, which is expected to prompt savers to opt for fixed rate products to secure the most favourable returns . Further rate cuts are also predicted to persist into the second half of this year and through to 2026. Economists at Investec Bank project that the Bank of England base rate, currently at 4.25%, will drop to 3.75% by the end of 2025. They foresee a continued decline in rates, with expectations set for a dip to 3% by summer 2026. Research from Investec Save indicates that nearly two-fifths of savers (37%) are planning to transfer their funds to fixed rate savings accounts this year in reaction to potential cuts to the Bank of England base rate. On average, those intending to move their money into fixed rate accounts are looking to shift £15,800 into such savings. Phil Shaw, Chief Economist at Investec, commented: "We predict a higher number of savers to move their money into fixed rate products as they look to secure attractive returns before anticipated further cuts to the Bank of England base rate. "The base rate has already been cut four times since last summer, and we anticipate that it will fall further still in the second half of 2025 and into 2026. Savers are looking to act now to secure a higher rate and the peace of mind that their money is working hard for them."
The Sun
20-07-2025
- Business
- The Sun
Cheapest areas to live in the UK including town with £120k homes and £599 rents – does your city make the list?
THE cheapest places to live in the UK have been revealed - with the winner boasting homes for an average of £120k and rents for less than £600. The cost of buying and renting has risen dramatically across the country in recent years, with wages failing to keep pace. 1 A new nationwide study now shows the cheapest areas to live in the UK compared to salaries, so you can find out if where you live is actually affordable - or whether it may be time to move. Burnley, Lancashire, is Britain's most affordable place to live, according to Investing Insiders' cost of living index. Its average house price is £120,719, while the average monthly cost of rent is £599. The median weekly salary of the town's residents is £530, meaning the average house price is just under 4.5 times the amount the average person earns in a year there (£27,565.20). It also takes locals just over a week to cover the average rent price on the median salary. Kingston-upon-Hull came in second place, with the East Yorkshire city having higher weekly wages than Burnley at an average of £575.50. However, house prices are more expensive at an average of £131,374, while average monthly rents are £642. Nine out of the 10 cheapest places to live are located in Wales or the North of England, while the 10 most expensive places are all found in and around London. Taking the third spot was Hartlepool, with the cheapest average monthly rent out of the top 10 at £546, while average house prices are £136,148. But it also has the lowest weekly wage at £523.20. 5 things to check before applying for a mortgage Cumberland came in fourth place, in part thanks to its weekly wages of £612.30, which were the highest out of the top 10. Average house prices in the North West town are £165,099, and rent is £618 a month, which are both higher than in the other most affordable places. Neath Port Talbot in South Wales is in fifth place, with wages averaging £601.90 per week, but house prices are also higher than most in the top 10 at £161,605. Blaenau Gwent is in sixth place, ahead of Hyndburn and then County Durham. Stoke-on-Trent came in ninth, and Sunderland rounds off the top 10. The study also looked at the most expensive places to live in the UK, with the top 10 least affordable all in the capital. The Royal Borough of Kensington and Chelsea is the most expensive place to live, with average house prices of £1,345,813 and average monthly private rent of £3,663, compared to a median weekly salary of £703.70. Westminster, Camden, Hammersmith and Fulham, and Richmond upon Thames make up the bottom five, as each has an average house price of at least £750,000. Investing Insiders founder Antonia Medlicott said: "These figures lay bare the widening gap between the UK's most and least affordable housing markets. "It's shocking that a young professional in Westminster needs over twenty years of net income to buy a typical flat, while someone in Sunderland can do the same in under five. "Whether you're saving for a first home or debating a relocation, these numbers prove there are realistic paths to ownership, if you know where to look and how to play the system." Lifetime ISA 'still in good working order' The study also revealed that the Lifetime ISA cap - which means savers can only buy a house up to the value of £450,000 - still covers 85 per cent of areas in the UK. It found that house prices in 54 out of 350 local authorities exceed the limit, including Westminster, Oxford, and Cambridge. There have been calls to reform Lifetime ISAs in recent years, with experts and campaigners arguing that the current cap has not kept up with rising house prices and has led to thousands missing out on buying their first home. The £450,000 limit has not changed since the LISA was first introduced in 2017. 'It's great to see that the Lifetime ISA is still in good working order for 85 per cent of the UK, and first-time buyers should look to maximise their usage of the £4,000 a year allowance," Ms Medlicott adds. 'However, for those who have reached that limit, already own a home, or are in an area where the house will exceed the £450,000 limit, it can be confusing what to do. "Whilst there are many options available, a Stocks & Shares ISA can be hugely beneficial, as it is most useful when used for the long term, like owning a home. 'The historical performance shows that these investments are great when aiming for larger life goals such as saving for a home, and can allow you to achieve the necessary funds much quicker for a deposit.' How to save for a home deposit IT can be overwhelming to know where to even start when it comes to saving for a home deposit Our Senior Consumer Reporter Blathnaid Corless shares some tips on how you can save to get on the housing ladder. The first thing you'll need to do is set a savings target. A house deposit is typically 5-10% of the property value, so take a look at the average house prices in the areas you want to live and calculate how much you'll need to save. From there, you should analyse your monthly or weekly spending to find areas where you could cut costs, such as eating out and takeaways, or any subscriptions you don't use. You could cut the costs of your household bills by comparing providers for energy, internet and other utilities. Price comparison sites such as USwitch and MoneySuperMarket can compare prices for you to help you find the best deal. Make sure you have the right savings account to maximise your money. A Lifetime ISA allows you to save up to £4,000 per year and receive a 25% government bonus. However, you can only use this to buy a house worth up to £450,000, so it may not be the best option if you live in an expensive area or you want to buy a bigger property. Some banks offer fixed-term or regular savings accounts with competitive rates which could also help you save. If you're renting, you could also consider moving back in with parents or other family on a temporary basis to help you save. .
Daily Mirror
18-07-2025
- Business
- Daily Mirror
Boost income by £330 annually with little-known government scheme
It currently costs around £43,900 a year for a comfortable retirement. And with the full new state pension covering £11,973, savers will need to make up the difference themselves. Finance expert Antonia Medlicott has revealed a savvy tip for those eyeing a comfortable retirement, with the current annual cost estimated at about £43,900. With the full new state pension providing just £11,973, Brits are left to bridge the gap themselves. Antonia, MD of Investing Insiders, is pointing savers towards a "little-known government scheme" known as Specific Adult Childcare Credits that could bolster your state pension to the maximum if you're short on qualifying years. The investment expert said: "When a parent gets child benefit, they also get national insurance credits, but if they're working and someone else is doing the childcare, like a grandparent, then those credits can be transferred, which increases your retirement income if you don't have enough national insurance contributions. "Each year of credit can be worth up to £330 in extra pension income. Over a 20-year retirement, that equates to £6,600. Even better, you can backdate credits to 2011 in the application." Should have no effect on state pension entitlement And there's no need to worry about the parents' state pension entitlement – it remains unaffected as long as they're clocking up qualifying years through other means, such as employment. Royal London's analysis shows just over half of the 3.4 million people on the new state pension snag the full amount, reports Lancs Live. The remainder receive amounts proportional to the number of qualifying years they possess. To secure the full sum, you need 35 qualifying years where you either contributed National Insurance or obtained credits such as the Specific Adult Childcare entitlement. To qualify for the credits, you must be aged over 16 but below state pension age, the child's parent or primary carer must consent to transferring their credit to you, and they must verify that you have cared for their child. You must also be an 'eligible family member' - this encompasses aunts, uncles, siblings irrespective of blood ties, grandparents, great-grandparents or great-great-grandparents. Check your pension Antonia also encouraged individuals to monitor their pensions even if retirement is years away. She said: "A staggering 55% of workplace pensions underperform against industry standards, which could leave workers with an income shortfall when they retire. "It's vital to take an active interest in a workplace pension to make sure it's on track for a comfortable retirement. Simply checking a pension regularly (at least once a year) will help workers identify any disappointing returns and take action if they need to change their investment strategy." Antonia highlighted that a mere 10% of the UK population have taken advantage of a Self-Invested Personal Pension (SIPP), which offers the same tax benefits as workplace pension schemes but with greater control over investment choices. She recommended considering a SIPP for several reasons beyond merely enhancing retirement income. She said: "There is a lot of flexibility when it comes to this pension; you can contribute as much or as little as you want. It is also very effective when it comes to estate planning. "You can pass on your pension savings to nominated beneficiaries very easily, which gives good peace of mind to know that your money will end up with loved ones." The finance guru also pointed out a common costly mistake regarding pensions: delaying the start of saving. She elaborated: "If you invest £200 a month from the age of 25, by 65 you could have a pot of over £459,000 at an average return rate of 7.5 per cent. "But if you start at 35, that pot will be £223,000, and it will be just £98,600 if you start at 45." It's important to remember that investments carry risk, and it's advised not to invest more than you can afford to lose at any point in life or when planning for retirement.
Scotsman
15-07-2025
- Business
- Scotsman
Expert provides five finance tips that could add £367,000 to Scots pension pots
Scots are losing money from their pension pots because of simple mistakes like failing to apply for government credits and low-performing pensions, but new tips from a finance expert explain how you can get your money in check. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scots are losing money from their pension pots because of simple mistakes like failing to apply for government credits and low-performing pensions, but new tips from a finance expert explain how you can get your money in check. Recent data shows that £43,100 is needed annually for a comfortable retirement in Scotland, yet more than a fifth feel unprepared for their later years. Fortunately, to help prepare yourself, finance expert Antonia Medlicott, Managing Director of Investing Insiders, has revealed five things you should do to give yourself a more comfortable retirement. Advertisement Hide Ad Advertisement Hide Ad 41 per cent of workers are not currently contributing to a private pension, but Antonia's guidance shows there are simple changes that can provide huge gains in retirement pots. Start thinking about your pension now. Apply for Specific Adult Childcare Credits When a parent gets child benefit, they also get national insurance credits, but if they're working and someone else is doing the childcare, like a grandparent, then those credits can be transferred, which increases your retirement income if you don't have enough national insurance contributions. This little-known government scheme is called Specific Adult Childcare Credits, and each year of credit can be worth up to £330 in extra pension income. Over a 20-year retirement, that equates to £6,600. Even better, you can backdate credits to 2011 in the application. The scheme leaves parents worried and asking questions such as 'will this negatively impact my own pension entitlement?', but the great news is that it doesn't, as they are working, which provides them with the national insurance credit anyway. Check your workplace pension Advertisement Hide Ad Advertisement Hide Ad A staggering 55 per cent of workplace pensions underperform against industry standards, which could leave workers with an income shortfall when they retire. It's vital to take an active interest in a workplace pension to make sure it's on track for a comfortable retirement. This issue is particularly acute for women, as only 28 per cent know where their pension is invested compared to over half of men (51 per cent). And recent government estimates show that women have 35 per cent less private pension wealth than men. Advertisement Hide Ad Advertisement Hide Ad Simply checking a pension regularly (at least once a year) will help workers identify any disappointing returns and take action if they need to change their investment strategy. Open a Self-Invested Personal Pension A Self-Invested Personal Pension allows you to have more control over how your money is invested and is popular due to its tax efficiency; all contributions are tax-deductible, and all growth is entirely tax-free. Making it an effective way to save for retirement. Around 10 per cent of Scotland's adult population currently hold a SIPP. Statistics over the last decade show that the average self-interest personal pension returns 5.2 per cent per year, compared to a standard default pension, which is between 3-4 per cent. There is a lot of flexibility when it comes to this pension; you can contribute as much or as little as you want. It is also very effective when it comes to estate planning. You can pass on your pension savings to nominated beneficiaries very easily, which gives good peace of mind to know that your money will end up with loved ones. Diversify income sources Advertisement Hide Ad Advertisement Hide Ad It's crucial that when you get to your retirement age, you diversify your income sources. Having this will help protect you from pension shortfalls and market volatility. This can be through state pensions, workplace pensions, investments, and personal savings. Each income source gives you an extra level of financial protection, as well as comfort during your retirement. If you combine this with being debt-free, then there's no reason you can't enjoy a stress-free and work-free later life. If you invest £200 a month from the age of 25, by 65 you could have a pot of over £459,000 at an average return rate of 7.5 per cent. But if you start at 35, that pot will be £223,000, and it will be just £98,600 if you start at 45. Debt-free living One of your main aims before retirement should be eradicating or minimising your debt. Particularly debt with high interest, as having to make regular payments on this could take a considerable amount out of your budget. Advertisement Hide Ad Advertisement Hide Ad It's also essential to think about your mortgage. If this is paid off before your retirement, then you won't have to worry about accommodation. On average, the Scottish population spends 36.7 per cent of its annual income on rent or mortgages alone. This will improve your financial flexibility, with that money instead going towards essentials like bills, food, and clothing. Whilst still having enough left over to treat yourself in your later years. Finally, Antonia commented: 'We often don't want to think about ourselves reaching retirement age. However, assessing the situation now and making small changes, such as checking for childcare credits or how your workplace pension performs, will leave you better prepared when you approach the end of your working life in Scotland. 'Deciding to start investing a small portion of your monthly income now could leave you with a lot more in your pension pot. That money will allow you to have a more comfortable retirement, or even let you retire earlier than planned.'
Scotsman
15-07-2025
- Business
- Scotsman
Expert provides five finance tips that could add £367,000 to Scots pension pots
Scots are losing money from their pension pots because of simple mistakes like failing to apply for government credits and low-performing pensions, but new tips from a finance expert explain how you can get your money in check. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Recent data shows that £43,100 is needed annually for a comfortable retirement in Scotland, yet more than a fifth feel unprepared for their later years. Fortunately, to help prepare yourself, finance expert Antonia Medlicott, Managing Director of Investing Insiders, has revealed five things you should do to give yourself a more comfortable retirement. 41 per cent of workers are not currently contributing to a private pension, but Antonia's guidance shows there are simple changes that can provide huge gains in retirement pots. Apply for Specific Adult Childcare Credits Advertisement Hide Ad Advertisement Hide Ad Start thinking about your pension now. When a parent gets child benefit, they also get national insurance credits, but if they're working and someone else is doing the childcare, like a grandparent, then those credits can be transferred, which increases your retirement income if you don't have enough national insurance contributions. This little-known government scheme is called Specific Adult Childcare Credits, and each year of credit can be worth up to £330 in extra pension income. Over a 20-year retirement, that equates to £6,600. Even better, you can backdate credits to 2011 in the application. The scheme leaves parents worried and asking questions such as 'will this negatively impact my own pension entitlement?', but the great news is that it doesn't, as they are working, which provides them with the national insurance credit anyway. Check your workplace pension A staggering 55 per cent of workplace pensions underperform against industry standards, which could leave workers with an income shortfall when they retire. Advertisement Hide Ad Advertisement Hide Ad It's vital to take an active interest in a workplace pension to make sure it's on track for a comfortable retirement. This issue is particularly acute for women, as only 28 per cent know where their pension is invested compared to over half of men (51 per cent). And recent government estimates show that women have 35 per cent less private pension wealth than men. Simply checking a pension regularly (at least once a year) will help workers identify any disappointing returns and take action if they need to change their investment strategy. Open a Self-Invested Personal Pension Advertisement Hide Ad Advertisement Hide Ad A Self-Invested Personal Pension allows you to have more control over how your money is invested and is popular due to its tax efficiency; all contributions are tax-deductible, and all growth is entirely tax-free. Making it an effective way to save for retirement. Around 10 per cent of Scotland's adult population currently hold a SIPP. Statistics over the last decade show that the average self-interest personal pension returns 5.2 per cent per year, compared to a standard default pension, which is between 3-4 per cent. There is a lot of flexibility when it comes to this pension; you can contribute as much or as little as you want. It is also very effective when it comes to estate planning. You can pass on your pension savings to nominated beneficiaries very easily, which gives good peace of mind to know that your money will end up with loved ones. Diversify income sources It's crucial that when you get to your retirement age, you diversify your income sources. Having this will help protect you from pension shortfalls and market volatility. This can be through state pensions, workplace pensions, investments, and personal savings. Advertisement Hide Ad Advertisement Hide Ad Each income source gives you an extra level of financial protection, as well as comfort during your retirement. If you combine this with being debt-free, then there's no reason you can't enjoy a stress-free and work-free later life. If you invest £200 a month from the age of 25, by 65 you could have a pot of over £459,000 at an average return rate of 7.5 per cent. But if you start at 35, that pot will be £223,000, and it will be just £98,600 if you start at 45. Debt-free living One of your main aims before retirement should be eradicating or minimising your debt. Particularly debt with high interest, as having to make regular payments on this could take a considerable amount out of your budget. It's also essential to think about your mortgage. If this is paid off before your retirement, then you won't have to worry about accommodation. On average, the Scottish population spends 36.7 per cent of its annual income on rent or mortgages alone. Advertisement Hide Ad Advertisement Hide Ad This will improve your financial flexibility, with that money instead going towards essentials like bills, food, and clothing. Whilst still having enough left over to treat yourself in your later years. Finally, Antonia commented: 'We often don't want to think about ourselves reaching retirement age. However, assessing the situation now and making small changes, such as checking for childcare credits or how your workplace pension performs, will leave you better prepared when you approach the end of your working life in Scotland. 'Deciding to start investing a small portion of your monthly income now could leave you with a lot more in your pension pot. That money will allow you to have a more comfortable retirement, or even let you retire earlier than planned.'
