Worldwide Financial Planning

Borrowers have been worried about the new interest rate they will pay on the amount they have borrowed from the government. Around 380,000 people have used the scheme which was introduced in 2013 to help people get on the ‘ladder’. You can borrow up to 20 per cent from the government to get onto the scheme (40 per cent in London).

Bank of England Governor Andrew Bailey gave a strong indication that the UK is approaching the end of interest rate hikes. Bailey has said the UK has moved past the situation where rates clearly needed to rise and the question was just by how much and over what time period.

The reason lenders may be lowering rates is because people are just not borrowing. If they want business, they will have to do better, as borrowers are just sitting tight, and in a shrinking pool, they need to be extra competitive.

An end to the interest rate hiking cycle would be welcomed by US consumers, who have seen new US mortgage rates spend four weeks above 7% for just the third time this century. Despite this, new home loan applications increased by 2.3% in the week ending August 25.

There are reportedly over £20billion in lost pensions sat around in dusty cupboards. It sounds a lot when you try to spend it on a Friday night. Read this column, especially if you haven't looked at your pension in a while.

In this week's FE Commentary, read how house builders came under more pressure after Crest Nicholson issued a profits warning. Recent updates from building firms have been mixed, with many companies reporting falling sales but saying a resilient core of demand remains, despite higher mortgages costs.