Rising mortgage rates signal new battle for homeowners ahead of Budget

Interest rates on some of the most competitive high street mortgage deals have risen in a fresh blow to homeowners and buyers.

HSBC and Halifax are among the lenders that have raised rates on some of their deals amid a “fraught political and economic climate”, with more expected to follow suit. One expert has urged buyers to “grab” any sub-4 per cent deals before they disappear entirely.

It will be seen as a fresh blow to Labour as the government hopes to improve consumer confidence and boost the UK economy ahead of Rachel Reeves’ Budget. The chancellor has vowed to deliver a statement on November 26 which addresses an economy that’s “not working well enough for working people”.

Adam Stiles from Helix Financial said: “HSBC have followed a long line of other lenders who have increased rates over the past week or so. This could be possibly in anticipation of the upcoming Doom Budget, as well as a number of other economic factors.

“We expect to see other lenders continue to raise their rates for the time being in what is a fraught political and economic climate.”

Louis Mason from Oportfolio Mortgages added: “Don’t wait. Act now. If your current deal ends in the next 6 months, your number one job is to secure a new rate today. You can always switch to a cheaper deal later if rates miraculously fall, but you can’t get back a cheap rate that’s gone.

“This isn’t about timing the market, it’s about protecting yourself from it. Lock in a rate you can afford to get that certainty. Speak to a broker now. Every day you wait could cost you.”

Interest rates have been on a downward course for much of 2025 but, with inflation still remaining high around 4 per cent, scope for the Bank of England to make further cuts is diminished. That, in turn, sees swap rates edging higher – which mortgage products are based on.

Almost a quarter of a million people are expected to need to renew five-year deals they initially took out just after Covid, when interest rates were rock bottom. They now face a huge uptick in monthly repayments, with no expectation of incoming mortgage rate cuts.

Peter Stimson, director of mortgages at MPowered, told The Independent: “Not all remortgages will be created equal in the coming months. Borrowers who took out a two-year fixed rate mortgage in 2023 are likely to see their interest rate go down, and a welcome reduction in their monthly repayments.

“But for the 200,000 or so people coming to the end of a five-year fixed rate, remortgaging will be a more bitter pill. Covid-era interest rates were much lower than they are now, so some of these borrowers could see their monthly repayments jump by hundreds of pounds.”

He urged homeowners to snap up any good deals now, because they are unlikely to last.

“Remortgagers tend to own a chunk of equity in their homes, which can help them qualify for the most attractive rates. Many of those remortgaging over the coming months could get a fixed interest rate below 4 per cent, irrespective of whether they want to fix for two, three or five years.

“But there’s a caveat to the good news – the interest rates on fixed-rate mortgages have probably fallen as far as they can. In fact some rates even inched up in recent weeks, as some lenders conceded that they may have got ahead of themselves in the frenzy of rate-cutting.

“Much as we might dream of a return to the days of sub-2 per cent mortgage interest rates, that simply isn’t going to happen. If you get offered a rate of under 4 per cent in the current market, grab it.”

His warning comes as new data from Incomes Data Research shows that average pay growth in the UK dropped to 3 per cent – down from 3.4 per cent – between April and July, marking the slowest pace since late 2021.

Wage growth – just like interest rates affecting both mortgages and savings – can work as two sides of the same see-saw. It can contribute to the overall difficulty in extra spending, including a malaise in house-buying when widespread. But it is also an important measure of future possible inflation – meaning earnings are less likely to contribute to rising inflation further down the line.

Meanwhile, financial expert Rachel Springall from Moneyfacts pointed out that the increased choice on high loan to value (LTV) products – those that give you 90 or 95 per cent of the property value for the mortgage amount – is higher than it has been for almost two decades.

That is a plus for first-time buyers, who remain in a battle amid rising property prices nationally to get on the ladder at all.

“The government has been adamant that they want lenders to do more to boost UK growth, so a rise in mortgage choice is positive,” said Ms Springall. “However, it may be a bit too soon to celebrate, as affordability remains a critical hurdle for buyers, and those who want to secure their repayments for the next five years will find higher LTVs are only dropping by miniscule margins.

“Overall, it does not bode well for borrowers who were hoping for a rate war, but it is worth pointing out that economic unrest typically leads to rising swap rates, which forewarn lenders. As we have seen countless times, lenders can adopt a more cautious approach to pricing their mortgages when swap rates rise.

“First-time buyers may feel it’s not quite the right time to get a mortgage if they are struggling with the cost of living. However, lenders have been relaxing their stress testing over recent weeks by boosting loan-to-income multiples, so some buyers might be surprised to find they could now get their first foot on to the property ladder.

“Affordable housing remains a key issue, so there is always more room to help first-time buyers, who remain the lifeblood of the mortgage market.”

Property market data was mixed recently, with Nationwide figures showing a small drop in the average price of a home in the UK across August. Halifax data showed it rose to record levels, just shy of £300,000.

Prince Harry visits late Queen’s grave on return to UK

Prince Harry has laid flowers at the tomb of his grandmother, the late Queen Elizabeth, on the third anniversary of her death as he visits the UK.

The Duke of Sussex paid his respects privately at St George’s Chapel in Windsor Castle after arriving in the country on Monday.

Harry arrived at the WellChild awards ceremony in London as part of his role as the charity’s patron, a position he has held for more than 15 years.

He is then expected to travel to a community recording studio in Nottingham on Tuesday.

There has been speculation about whether the duke will see his father, the King, during his visit, with the pair not having met face-to-face in over a year-and-a-half.

Harry’s visit follows recent pictures that showed senior aides to both Charles and Harry holding a meeting, which was rumoured to be a step towards rebuilding ties between the duke and the royal family.

Meanwhile, Harry’s estranged brother, the Prince of Wales appeared at a separate engagement at the National Federation of Women’s Institutes to mark the third anniversary of Queen Elizabeth II’s death.

Man City reach settlement over legal challenge with Premier League

Manchester City and the Premier League have reached a settlement over Associated Party Transaction (APT) Rules.

The two parties emphasised that City have now accepted that the current APT Rules are “valid and binding.”

The settlement ends a legal challenge between league and club after the Citizens launched a third case in February.

Though an outcome over the major financial case with City, which concerns more than 100 charges, is still to emerge, with no conclusion expected until at least next month.

A joint-statement from both Manchester City and the Premier League reads: “The Premier League and Manchester City FC have reached a settlement in relation to the arbitration commenced by the club earlier this year concerning the Premier League’s Associated Party Transaction (APT) Rules and as a result the parties have agreed to terminate the proceedings.

“This settlement brings an end to the dispute between the parties regarding the APT Rules. As part of the settlement, Manchester City accepts that the current APT Rules are valid and binding.

“It has been agreed that neither the Premier League nor the club will be making any further comment about the matter.”

Despite the neutral language naturally used in the same statements, insiders believe the fact that a lucrative new Etihad deal stands is a significant victory for City.

The club is not going to challenge the new rules, but the allowance of that deal is seen by some sources as “driving a coach and horses through the rules”.

Trump to discuss new sanctions on Russia this week after largest aerial attack of war

Russia has said no amount of sanctions will be enough to force it to back down in its war against Ukraine amid threats of new measures from US President Donald Trump.

“No sanctions will be able to force the Russian Federation to change the consistent position that our president has repeatedly spoken about,” Kremlin spokesperson Dmitry Petrov told reporters on Monday.

It comes after Trump has said he is ready to push ahead with a new round of sanctions after Russia targeted the main government building in Kyiv for the first time since the Ukraine war began in 2022.

The aerial attack was the largest of the war so far, involving a total of at least 805 drones and 13 missiles fired at cities across Ukraine, killing four people, including a three-month-old baby.

He said European leaders are set to visit the United States this week to discuss ways to end the war in Ukraine, adding he would speak with Russian president Vladimir Putin “soon”.

Trump did not specify what he envisions as the “second stage” of sanctions against Russia, the New York Post reported.

It is the second time Putin has launched a mass Russian drone and missile attack targeting the capital in a span of two weeks, despite claiming to want a peaceful end to the war.

Will Storm Amy hit UK? Met Office announces latest UK weather forecast

Heavy rain, thunderstorms and strong winds are set to batter the UK this week amid questions over whether the Met Office will declare the first named storm of the season.

A week of unsettled weather is forecast to sweep the country, with sunshine and showers expected. Some longer spells of heavy rain are also likely, particularly in the north and west, and strong winds could hit, with warnings of possible thunder and hail in areas.

The Met Office said Monday and Tuesday are expected to be the best days of the week, as conditions then turn wetter and windier from midweek – before a deepening area of low pressure could bring Storm Amy, the first name of the new 2025/26 storm naming list, over the weekend.

Saturday should see sunshine and showers, with a chance of heavier rain moving across southern areas, before the storm could hit the country – although the Met Office said it is still too early to announce the expected arrival of Storm Amy.

Deputy chief meteorologist Tom Crabtree explained: “We are keeping an eye on a deepening area of low-pressure, which will develop over the North Atlantic during the coming days and might bring impactful weather to the UK, most likely on Sunday and Monday.

“At present, it’s too early to say the precise impact this might have on the weather, but it’s likely to bring widespread heavy rain and strong winds, most probably to the north of the UK.

“We are closely monitoring what the various computer models are suggesting and will keep people updated as our forecasts evolve over the next few days.”

Meanwhile, the Met Office said Monday should see showers developing across western areas, while eastern parts remain largely dry with sunny spells. It is predicted to feel cooler than the past weekend, with breezy conditions in the northwest and lighter winds elsewhere.

On Tuesday, a new area of low pressure is set to approach from the west, bringing rain to western areas through the morning. This is forecast to ease to showers later in the day, and away from this, there will be variable cloud and scattered light showers. The weather service said temperatures will remain near average for the time of year.

The Met Office said Wednesday will then bring a broadly wet day for many, with areas of rain and showers gradually spreading east and north-east, perhaps turning heavy in some places. Winds are set to pick up and may be strong around Irish Sea coasts, with the risk of gales on exposed northwestern coasts and hills in the north.

More sunshine and blustery showers are forecast on Thursday, with the chance that some may turn heavy and thundery, particularly in the south and west.

And Friday is predicted to be a similar day to Thursday, with a risk of thunderstorms and small hail in the heaviest showers.

Over the weekend, the weather service forecast: “This period is likely to start out unsettled, with low pressure dominating the pattern. This will mean showers or longer spells of rain will affect most of the UK at times. Some heavy rain or showers are expected in places, most often in the west and north. Thunderstorms and hail are also possible, as are some spells of strong winds, especially if any deep areas of low pressure develop and affect the UK.”

It comes after England experienced its wettest week for seven months, according to the Environment Agency. There have been “notable” amounts of rainfall, particularly in the North West, South East and South West, all of which received more than 35mm of rain between 27 August and 2 September.

But despite the recent showers, total rainfall in England in August was only 42 per cent of the long-term average.

Long spells of dry and hot weather over the past few months have taken their toll on the environment and agriculture, leading to hosepipe bans, drought orders, poor harvests and low water levels in reservoirs. Both spring and summer 2025 were the UK’s warmest on record, while spring was the second driest for England since Met Office rainfall data began in 1836.

The funniest, strangest and best things from this year’s Fringe

The Edinburgh Fringe is a place where British eccentrics take centre stage and the country’s weirdest most wonderful talents get to explore the craziest outreaches of their creativity, whether it’s staging immersive theatre in a bathroom, or performing a show on a treadmill.

For all the silliness, though, there’s a seriousness to the whole thing: the Fringe is the breeding ground for Britain’s comedy trendsetters: The Mighty Boosh and The League of Gentlemen first found audiences here and the international phenomena that are Fleabag and Baby Reindeer got their first outings on the stages of the Fringe.

This year, as ever, the festival’s packed schedule sees Edinburgh veterans rubbing shoulders with dozens of emerging voices on the hunt for an audience, many of them willing to perform anywhere from the backroom of a pub to a book shop, or even a bathtub.

The summer of 2025 is looking like it’s going to be a particularly strong year for established heroes of the Fringe. Winner of the Edinburgh Comedy Award back in 2009, Tim Key returns to the Fringe with a new show Loganberry, likely to be informed, in part, by his recent experiences starring in the film The Ballad of Wallis Island and appearing as pigeon in Bong Joon Ho’s Mickey 17. Expect deadpan poems and much hilarity.

Following the success of her smash hit Channel 4 show The Change, about a menopausal woman rediscovering herself in the Forest of Dean, Fringe-favourite and 2013 winner Bridget Christie returns to Edinburgh with a work in progress at the Monkey Barrel. Also showing a work in progress is Ahir Shah, who has pedigree when it comes to licking a show into shape at the festival – when he did so in 2023, he won the main prize. Television presenter and podcaster Nish Kumar is back on his old stomping ground too with a new show Nish, Don’t Kill My Vibe at the Gordon Aikman Theatre.

For all the tried-and-tested performers who pretty might guarantee laughs, one of the real joys of the Fringe is to be found in taking a risk on an up-and-coming comedian in the hope you stumble across a star of the future.

In some cases that might mean checking out a Fringe first-timer like Toussaint Douglass, who makes his Edinburgh debut with his hotly-tipped show Accessible Pigeon Material, which promises to be joyfully absurd and very pigeon-heavy in terms of content. Or popping in to see if promising young talents can pull off that tricky second album: having scooped a Best Newcomer gong at last year’s Fringe, Joe Kent-Walters is reprising his gloriously demonic working men’s club owner, Frankie Monroe, at the Monkey Barrel Comedy venue (Cabaret Voltaire).

Also keen to build on a promising start will be Leila Navabi, a television writer from South Wales, whose 2023 musical comedy show Composition included a song about having her ears pierced in Claire’s Accessories. This year, she’s back with Relay, which blends jokes and songs to explore her attempts to make a baby with her girlfriend and a sperm donor.

Whether they’re promising young tyros or established names, for many comedians the creative freedom and outright silliness of the Fringe has them coming back time and time again. Take, for example, Ivo Graham whose show this year is called Orange Crush and is described by the man himself as “a show about hats, haters and hometown heroes, from a man who promised everyone he loved that he wouldn’t do Edinburgh in 2025, but then came back anyway, because he simply had to do this show.”

If you are planning to join Ivo in Edinburgh to soak up the comedy chaos in person, don’t forget provisions. The average Fringe day involves walking 15,000 steps, climbing 43 hills and sitting through at least one show in a sauna-like attic with no ventilation. So, pack accordingly: a bottle of water, a sturdy fan and a packet of Maynards Bassetts Wine Gums or Jelly Babies to keep your blood sugar and national pride intact. Nothing says “I’m here for the arts” quite like chuckling through a late-night experimental mime while chewing on a Jelly Baby’s head.

Now you’re in the know, don’t forget to set the juice loose with Maynards Bassetts – grab a bag today!

Great North Run organisers say sorry after medal mix-up

Organisers of the Great North Run have issued a pun-filled apology after mistakenly featuring a map of Sunderland on thousands of finishers’ T-shirts and medals, instead of the event’s traditional Tyneside home.

The error affected more than 60,000 runners who completed the 13.1-mile route from Newcastle to South Shields on Sunday, cheered on by up to 200,000 supporters.

Tyneside loyalists quickly took to social media to voice their shock, as the background map on the finishers’ medal clearly depicted the River Wear snaking through their fierce rival city of Sunderland. Event organisers acknowledged the gaffe, stating: “Wear sorry!”

On Monday, organisers admitted their mistake and dispelled cheeky rumours that it was a hint they plan to take the run further south next year.

They said in a statement: “Wear sorry!

“As the eagle-eyed have already spotted, the shape of the river on this year’s finisher T-shirt & medal is indeed the River Wear.

“To answer the rumours that this was the route reveal for next year…. sorry to disappoint, it’s a mistake.

“Lots of people looked very closely at the designs and none of us picked it up.”

The statement continued: “We had Newcastle United stars on the start line and the Stadium of Light on the medal.

“The Great North Run is truly a celebration of the region, even more so than we had planned.

“For the 60,000 who ran yesterday, you’ve got the most unique T-shirt & medal in Great North Run history, a keepsake that we’ll be talking about in 44 years’ time.”

Founder and president of the Great North Run Sir Brendan Foster said: “I loved the designs for the medal and T-shirt, spent ages marvelling at them, and never spotted the mistake, even when we hung it in Fenwick’s window.

“I’ve lived on the River Tyne my whole life and I should’ve noticed, but if I’d run the Great North Run yesterday, I’d still be wearing my medal with pride.

“Thanks to everyone who took part in an amazing event yesterday, and all the supporters who came out to cheer on the runners.

“It was a fantastic Great North Run, and we’re already looking forward to 2026, after we’ve brushed up on our geography.”

Why is France on the brink of collapse, again?

France is on the brink of losing its third prime minister in 12 months, with incumbent François Bayrou facing a confidence vote that he called but is widely expected to lose.

The minority government’s expected fall threatens to bring more political and economic upheaval, less than a year after former prime minister Michel Barnier’s short-lived administration imploded in December.

If Bayrou and his government do not win the vote on Monday, French president Emmanuel Macron will have to choose his fifth prime minister in less than two years. Macron has come under fire over France’s current crisis, following a snap election that he called last year.

In an effort to secure the 2026 budget, Bayrou called for a confidence vote in the hopes that it would unite politicians in the sharply fragmented National Assembly, France’s lower and more prominent house of parliament.

However, key opposition parties including the National Rally and the Socialist Party have already pledged to vote against him.

“I want to tell you how happy I am that the government will fall today. For many French it’s a relief,” Manuel Bompard, from the left-wing France Unbowed party, told the local radio network France Info .

Bayrou is facing major opposition to his budget plan that includes €44bn (£38bn) of spending cuts and tax hikes, which he argues are needed to rein in the country’s spiralling deficit and debts.

He has also proposed cutting two public holidays as a way to reduce costs, which ignited national anger.

If he loses, Bayrou must submit his resignation to Macron, who will then either name a new head of government or dissolve the lower house and call early elections.

The French president has so far rejected the idea of renewed snap elections and has repeatedly insisted he will not resign.

If Macron names a new premier, questions remain over how the government will pass the unpopular budget.

Bayrou expressed frustration on Sunday that rivals on the opposite ends of the political spectrum in the National Assembly are ganging up against him.

“What’s the point of bringing down the government? These are political groups that not only don’t agree on anything but, far worse than that, are waging open civil war against each other,” he told the French online media outlet Brut.

France, the second largest economy in Europe after Germany, has one of the highest levels of spending in the continent.

Last year, public spending accounted for 57 per cent of the country’s gross domestic product (GDP), on financing healthcare and welfare including its generous pension and unemployment benefits.

This has led to big deficits and rising national debt, which stands at €3.35trn (£2.9trn) as of the financial year ending March 2025, which equates to almost 114 per cent of its GDP. By comparison, the UK’s debt is £2.9trn, representing almost 96 per cent of GDP.