Base rate rise, energy cap soars and inflation predicted to surpass 7%

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 4 February 2022

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

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Summary

Thursday marked a big day for the pound in our pocket. First of all, it was announced the energy price cap was to rise 54 per cent.

Georgie Frost, Lee Boyce and Helen Crane take a look at what that means, what support has been made available and what happens next.

Hot on the heels of that bombshell we had another rate rise from the Bank of England - piling pressure on borrowers.

What will it mean for mortgages and will we finally seeing savings rates begin to head higher?

With rates on the rise, would you fix your mortgage for a decade? Halifax and Lloyds unveil 10 year deals.

And Helen launches her Crane on the Case consumer column – the first saw a remortgage mix-up land our reader with a bill of nearly £4,000.

Transcript

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0:00.0	Welcome to This Is Money Podcast. I'm Georgie Frost and join me and Deputy Editor Lee Boyce is personal finance editor Helen Crane. And what an hour we had this week for our finances. First, at 11, it was announced that to no one's great surprise, but to everyone's horror, the energy price gap was to go up 54% to just under two grand come April. Hot on the heels of that, bombshell, we got another rate rise from the Bank of England, pining pressure on borrowers. The government did announce some help, but does it go far enough? Also today, with rates on the rise, would you fix for a decade? Halifax and Lloyd's launched Best Buy 10-Tenier deals. Plus, Crane is on the case, solving your problems,
0:38.4	and today it's remorgeting, renovating and overpayments. Don't forget to do it up to date.
0:42.5	With all the latest breaking money news, just go to this ismoney.co.uk or download the app.
0:48.0	But first, I am going to go in the order that we got the news on Thursday, Helen and Leap,
0:53.7	because if you are an average
0:55.3	household, on a default energy tariff, and with an SVR mortgage, it was a pretty awful hour
1:02.1	that started around 11 o'clock that effectively made you about a grand worse off, give or take,
1:08.7	come April. First up, the regulator of GM announced a 54% hike in
1:13.8	energy bills from £1,277 to £1,9171. More for those on prepayment metres. That is almost
1:23.1	£700 you are going to have to find down the back of your sofa. Helen, I should also
1:30.5	point out because this figure is somewhat misleading, I think, because it is average usage. So the
1:37.6	cap is on the energy units, not on your bills. So if you're a big family in a drafty old home,
1:43.0	you can expect to pay a lot more.
1:44.9	But this is huge. This is going to really put some people over the edge.
1:51.2	Yeah, absolutely. It's £700 a year or more is a huge amount. And you have to think that it's not,
1:59.0	you know, this isn't the only area where prices are going up.
2:03.0	It's, you know, it's everything.
2:04.1	It's the price of a weekly shop, probably now the price of your mortgage if you have one, even rent prices are going up.
2:10.1	So it's not just your energy bills going up.
2:13.2	It's in the context of many, many other expenses also going up. So yeah, it's absolutely huge.
2:19.9	I mean, Lee, we're hearing a lot about heating and eating. Do you think it's really going to come down to
2:25.9	that? I think it will, Georgie. I mean, you know, I think we were talking about this last week,
	...

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