Podcast Summary
Sleep Number Smart Bed for better sleep for couples and historic low loan rates in UK's housing market: The Sleep Number Smart Bed enhances sleep quality for couples, while historic low loan rates in the UK's housing market offer opportunities for existing homeowners with substantial equity to refinance or purchase properties at record-low rates.
Quality sleep is crucial, and the Sleep Number Smart Bed offers customized comfort for better sleep for couples. Meanwhile, in the world of finance, historic low loan rates are being offered to low-risk borrowers in the UK's housing market. The Bank of England reported a decrease in mortgage approvals and house price falls, but for existing homeowners with substantial equity, these low rates present an opportunity. This week, Nationwide Building Society and RBS introduced 2.89% and 2.95% fixed-rate mortgages, respectively. Keep an eye out for more potential record-low rates in the coming weeks.
UK Government's Funding for Lending Scheme Launched: The UK government's new scheme aims to incentivize banks to lend more to households and small businesses by offering them cheaper funding costs, potentially boosting the economy and the housing market.
The UK government's Funding for Lending scheme was launched this week with the goal of encouraging banks and building societies to lend more to households and small businesses. The scheme aims to incentivize banks to lend by offering them cheaper funding costs than what they can get in the wholesale markets. The hope is that this will boost the economy by increasing lending and encouraging people to remortgage or buy homes, which in turn will have a positive impact on the economy. However, there are concerns that the banks may still focus on lending to low-risk borrowers rather than reducing their own capital costs. The Bank of England maintained the base rate at 0.5% and may wait to see the impact of the Funding for Lending scheme before considering a reduction. While house prices are generally falling across the UK, there are exceptions, particularly in London where prices remain high. This could make it an opportune time for those with large deposits or equity to secure a mortgage. Some lenders, such as Lloyds Banking Group, have pledged to increase lending to first-time buyers. The success of the scheme and its impact on the housing market remain to be seen.
Currency funds' struggles in the past year: Currency funds, which deal with buying and selling currencies without underlying assets, lost an average of 6% in the past year due to unpredictable markets and central bank interventions. Only 10 out of 35 investment sectors made any money, making this a larger market trend.
Currency funds, which involve buying and selling one currency against another without buying or selling any underlying asset, have experienced poor performance in the past year, with an average loss of 6%. This is due to the unpredictability of currency markets, with central banks intervening frequently to weaken their currencies. While currency funds offer liquidity, they may not be suitable for retail investors due to the difficulty of gauging currency markets. Overall, only 10 out of 35 investment sectors made any money in the past year, making currency funds' struggles part of a larger market trend. For those interested in learning more, tune in for Tanya's article on low mortgage rates for low-risk borrowers and check out ft.com/forward/money.
Considering Currency ETFs as an Alternative to Traditional Fund Managers: Currency markets can be unpredictable, consider ETFs for investing, Sterling's conflicting forces, no currency is truly safe, all funds are losing money, read Alice's article for more on currency funds and PPI
Currency markets can be unpredictable and even the most convinced investors can be caught off guard by sudden shifts in central bank policies or economic conditions. For those looking to invest in currencies, Alice suggests considering currency ETFs as an alternative to traditional currency fund managers. She points to Sterling as an example of a currency that's been experiencing conflicting forces, with its status as a haven currency in Europe keeping it supported despite economic concerns. However, she cautions that no currency is truly safe these days as central banks try to weaken their currencies to prevent them from becoming too strong due to demand. Alice plans to cover some currency funds in her upcoming article in The Feet, but she warns that all funds are currently losing money. To learn more about the returns offered by currency funds, investors are encouraged to read Alice's article in the money section of this weekend's Feet and online at ft.com/forward/money. Additionally, Alice mentions that they have been discussing PPI (Payment Protection Insurance) in the program.
Lloyds sets aside £700m more for PPI compensation: Lloyds Banking Group added £700m to its PPI compensation fund, bringing the total to £4.3bn. Consumers can claim back compensation directly or use claims management companies, but should be aware of fees.
The PPI (Payment Protection Insurance) mis-selling scandal continues to grow, with Lloyds Banking Group setting aside an additional £700,000,000 for compensation. This brings the total provision to a staggering £4,300,000,000. The scandal has led to a surge in texts and phone calls from claims management companies offering to help consumers claim back their compensation. However, consumers should be aware that these companies may charge significant fees, taking a large percentage of the compensation. It's important to note that pursuing a PPI claim directly with the bank is a viable option and can save consumers money. Consumer groups argue that banks could make the process easier, but resources such as Money Saving Expert and Which offer step-by-step guides to help consumers make a claim. To make a claim, consumers should consider why they believe they were mis-sold PPI. If they didn't realize they were taking it out at the point of sale, or were pressured into buying it, these are valid reasons. Consumers should also be wary of unsolicited texts and calls from claims management companies, as they may not have any information about who has had PPI. Overall, it's important for consumers to be informed and proactive in pursuing any potential PPI compensation they may be entitled to.
Mis-sold PPI claims: If mis-sold PPI, claim compensation directly or beware of unsolicited offers from claims management companies.
If you've been sold PPI (Payment Protection Insurance) and believe you were mis-sold, you may be able to claim some of the £10 billion pounds set aside by banks for such cases. However, be wary of unsolicited calls or texts from claims management companies as they may pass on your details to others for a referral fee. Instead, consider handling the claim yourself. For more information on this topic and other financial matters, check out Lucy's article in the money section of the Financial Times. Remember, it's important to stay informed and protect yourself from potential scams.
