Money latest: Five big lenders hike mortgage rates amid interest rate uncertainty (2024)

Tesla - owned by billionaire Elon Musk - has cut the price of some of its electric car models after reporting a fall in sales.

The revamped Model 3 car fell by 14,000 yuan (£1,500) in China, putting the price tag at just under £26,000 for the car that upgrades the interior and exterior styling of the original 2017 model.

It comes as Tesla grapples with competition from China, the world's largest automobile market, which is rolling out cheaper electric car models.

"Tesla prices must change frequently in order to match production with demand," Musk posted on X this weekend.

There have also been price cuts in Europe, the Middle East and Africa, a Tesla spokesperson said.

In Germany, the price of the Model 3 rear-wheel-drive is now showing as €40,990 (£35,357), down from €42,990 (£37,000), where the price had been since February.

It follows cuts in the US of the Model Y, Model X, Model S and the full self-driving driver assistant software.

Earlier, this month, the company reported a decline in its global quarterly deliveries for the first time in nearly four years.

Musk also announced that more than 10% of the company's global workforce will be laid off as it braces for its first annual drop in deliveries.

A council that oversees many popular tourist towns on the Kent coast has said it is considering implementing a tourism tax as a way of maximising income from visitors.

A new report by Thanet District Council - which includes the towns of Margate, Broadstairs and Ramsgate - highlights the negative impact of tourism in the area and puts forward a number of recommendations to help with this.

One of those recommendations is levying what it calls a "modest tourism tax" on those staying overnight.

The report also proposes levying additional council tax on second homes that may be being rented out as short-term holiday lets.

Justifying the recommendations, the report says: "We want a booming visitor economy but we areacutely aware of the additional costs visitors bring, so we need to make every effort tosecure income for the council to set against those costs."

Conservative district councillor John Davis welcomed the proposed changes during a meeting of the overview and scrutiny panel on 16 April.

"It's an important initiative," he said.

"I would like to welcome costs on Airbnbs and the like, because in Ramsgate we have 866 homes for short-term let and 21 flats.

"This is absolutely obscene."

Thanet has seen the biggest growth of tourism enterprises over the last five years.

According to 2024 analysis by Kent County Council, 4.4% of these enterprises are accommodation for visitors.

Train drivers who are members of the Aslef union at 16 companies have announced fresh strike dates as part of their long-running dispute over pay.

Drivers at different companies will walk out on various dates between 7 May and 9 May.

They will also refuse to work non-contractual overtime from 6 May to 11 May.

Read the full story here...

NatWest, Barclays, Accord, Leeds Building Society and HSBC have all announced rate increases today - amid concern interest rates may not fall as much as expected this year.

Swap rates - which dictate how much it costs lenders to lend - have increased in the past week after US inflation came in higher than expected. Economists are divided about what this means for UK interest rates - with some pointing out that the UK economy is struggling far more, and therefore cuts are still imminent.

The London Stock Exchange Group is still pricing in a June cut and two further cuts before the end of the year. Analysts at Morgan Stanley, Goldman Sachs Group, Capital Economics and Bloomberg Economics all concur.

However, some economists have suggested we may have to wait until November for a first cut from the 16-year high of 5.25%.

Lenders, it seems, are growing more cautious.

Responding to today's hikes, Elliott Culley, director at Switch Mortgage Finance, told Newspage: "The rate rollercoaster rolls on.

"Just when the market appears to be picking up some momentum, there is a sharp change of direction.

"We are now seeing the spike in swap rates last week filtering through to the public as lenders raise their rates in response.

"The volatility we are experiencing currently really amplifies how important it is to secure a rate as soon as possible, as this could save you hundreds of pounds, especially for existing homeowners."

Simon Bridgland, broker/director at Release Freedom, added: "This morning, I have been calling clients who have been sitting on the fence urging them to proceed as this increase is potentially going to be with us for several months.

"Inaction will weigh heavily on household purses so don't delay, there is a finite amount of hours left to get deals done before the increases take effect, pick up the phone to your broker immediately or you will be paying more money for years to come."

BySarah Taaffe-Maguire, business reporter

The UK's biggest water company has put forward an investment offer that could increase customer bills even more than the 40% rise it already requested.

Thames Water, which serves 16 million customers in the south of England, has suggested an additional £19 a year bill increase on top of its plan for bill payers to becharged 40% more.

The optional extra increase could fund £1.9bn in environmental protection investment, Thames Water said, if approved by regulator Ofwat.

Under the utility's proposed business plan, for the five years to 2030 bills will rise to £608 a year - a 40% rise.

The average bill is currently £432.60 a year.

But if the extra investment takes place customers will have to pay 44% more instead - £627 a year by 2030.

An investment of £18.7bn had already been proposed but under revised plans, an extra £1.1bn has been offered to go into "projects benefiting the environment", Thames Water said.

Regulatory approval is required for the plans and Ofwat is due to publish its draft view on 12 June.

By Sarah Taaffe-Maguire, business reporter

Despite the retaliatory strikes between Israel and Iran, the oil price has fallen to $86, down from the $91 dollar highs seen earlier this month.

A barrel of the benchmark Brent crude oil now costs $86.41, down from $88 on Friday.

It's a good day for the hundred most valuable companies that make up the Financial Times Stock Exchange (FTSE) 100.

The index is up 1.31%, led by grocers Ocado, Sainsbury's and Marks and Spencer.

It's also a big day for Asda as it reported profits rose 23%. As the company is privately owned, its share price is not tracked on the London Stock Exchange.

The larger FTSE 250 index is also up, just a smaller 0.87%.

A pound buys $1.2359 and €1.1591.

Read the full story on Asda here...

Ryanair has hit back after a study suggested it often may not be the low-cost option.

A study conducted by Which? found thatwhile budget airlines like Ryanair and Wizz Air often had the cheapest headline fares, both failed to return the lowest price when cabin bags and seat selection were added on.

One of three routes analysed - return flights from London to Naples - foundBritish Airways offered the lowest total price at £120.

This compared with £185 with Wizz Air, £132 with Ryanair and £126 with easyJet.

For return flights to Malaga, easyJet came out as cheapest, with British Airways in second.

Rory Boland, editor of magazine Which? Travel, warned passengers to "look beyond the headline fare and factor in the cost of extras you need, before you book".

Reacting, a spokesperson for Ryanair said:"This is more fake news from Which?.

"Ryanair has the lowest fares of any airline in Europe and additional ancillary products, such as extra luggage, are entirely optional for customers."

A Wizz Air spokesperson added that its "average price" for cabin baggageand priority boarding was "much lower" than the one found by Which?

They said the "ultra-low-cost" airline allowed passengers to choose which services they wished to purchase so that they could offer the "most affordable travel opportunities".

Every Monday we put your financial dilemmas or consumer disputes to industry experts. You can find out how to submit yours at the bottom of this post.

This week, a Sky News reader who left their name as "Dangerous Trees"asks...

"My neighbour's trees are damaging my wall. Can't close the gate, starting to take up the pavement. Gutter is full of pines off the trees, they go up the roof, branches are hanging over the house and garden. They think they are bigger than the law and refuse to do anything saying it's green belt. Is there any way to get them to pay for repairs?"

George Harrison, solicitor at The Jonathan Lea Network, says this...

Dealing with troublesome neighbours can be challenging and we often advise on these disputes. Usually, the starting point is to have a polite and respectful conversation with the neighbours to explain the issues caused by their trees and express your concerns. However, it seems that constructive communication with these neighbours has broken down.

You have indicated that the trees are damaging your property, namely your wall and pavement and you also cannot close your gate, preventing enjoyment of your property. Consider a couple of issues as a starting point:

• If the property is in the green belt (which is a government policy for controlling urban growth in some areas), you can check any restrictions with your local council or planning authority. They can provide information about green belt regulations and any restrictions related to tree maintenance. If the trees are indeed causing damage, the council may also be able to intervene directly; and...
• You should find out if the trees are protected by a Tree Preservation Order. TPOs are legal orders that prevent the cutting down, uprooting, or damaging of certain trees without permission. If the trees have TPOs, your neighbours will need consent (ie from the local council) to carry out any work. You can check with your district or borough council's planning department or tree officer to see if there is a TPO in place.

You may potentially have a claim against your neighbours for trespass (because the trees are trespassing on your land) and/or private nuisance if the trees are causing a continuous, unlawful and indirect interference with the use or enjoyment of land, or some right in connection with the land.

If there is also trespass and/or encroachment of the trees and the roots cause damage, compensation can be claimed for this damage.

If you have a mortgage, your lender may wish to get involved as they will be interested in protecting their security which is at risk of damage. Furthermore,you should checkany insurance policies you may have for the property which may include legal expense insurance coverage as this may assist with any claim you need to makeand/or protect you from your neighbour's poor behaviour.If you do have an insurance policy for your property, it may be the case that as a condition of this insurance, the insurer may have the right to take up the claim on your behalf, so this is also something to investigate.

Also, consider having the properties assessed by an expert surveyor to obtain estimates for repair and keep all receipts for any repairs as evidence. You could even consider jointly instructing an expert surveyor with your neighbour.

If you choose to take court action, you should make sure you follow the pre-action protocol.

If you choose to take matters into your own hands, you can lop the trees only to the extent of the overhanging branches trespassing on your land, but you should offer any prunings back to the neighbour as these remain their property.

Before you do this, you should also warn your neighbour of the action you will take in advance. You must not trespass onto the neighbour's property at any time, although you could climb into the tree to undertake the necessary work.

It goes without saying you should also check for any TPO or other conservation area restrictions before carrying out the work. You cannot cut back further than the relevant boundary, and you could be liable for any damage to your neighbours' trees if, for example, the branch removals cause tree failure due to disease, a change in the balance of the trees, or different wind loading which causes the trees to blow over.

Therefore, it may be wise to employ a competent tree surgeon to ensure that any risk is minimised and they would take on liability for the work (check they have suitable public liability insurance before engaging their services).

This featureis not intended as financial advice - the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute, leaving your name and where in the country you are, in the form above or by emailing news@skynews.com with the subject line "Money blog". Alternatively,WhatsApp ushere.

Iceland has dropped its famous "That's why mums go to Iceland" tagline as part of a drive to be more inclusive.

The frozen foods giant historically advertised with "mums love it" when it first opened in 1970.

It adopted its classic slogan in 2004, with pop star Kerry Katona fronting its advertising campaigns.

But the chain, which opened its first store in Oswestry, Shropshire, in 1970, has now changed its strapline to a more neutral "that's whywego to Iceland" - which bosses say reflects its "growing customer base".

TV personality and Big Brother winner Josie Gibson, the company's new ambassador, said the new tagline was "great".

"Even though mums love it, Iceland is for everybody," the mother-of-one said.

Executive chair of Iceland, Richard Walker, said: "Iceland's always been number one with mums and our new campaign celebrates our growing customer base, from across all aspects of the great British public."