Money blog: These major retailers under scrutiny over questionable Black Friday 'deals' (2024)

A "surprising" reduction in mortgage rates by Barclays could encourage others to follow suit, brokers have said.

The high street bank has announced cuts of up to 0.2 percentage points on some of its residential mortgage deals from tomorrow.

They include:

• Two-year fixed deal at 75% loan-to-value (LTV) with a fixed £899 product fee - reducing from 4.46% to 4.36%
• Two-year fixed, 85% LTV, £899 product fee - reducing from 4.94% to 4.84%
• Two-year-fixed, 90% LTV, no fee - reducing from 5.49% to 5.39%
• Five-year fixed remortgage deal at 60% LTV, £999 product fee - reducing from 4.37% to 4.17%
• Five-year fixed remortgage deal at 85% LTV, £999 product fee - reducing from 5.27% to 5.07%

Mortgage rates have been on an upward curve in the last month or two on the expectation base rate cuts from the Bank of England will be more gradual than previously expected - as it waits to see if October's budget proves inflationary.

Industry insiders therefore welcomed Barclays' decision.

Justin Moy, managing director at EHF Mortgages, told Newspage: "This is a somewhat surprising announcement from Barclays, as the mortgage market showed little scope for any form of rate cuts before Christmas.

"Whilst these reductions are not going to be enough to tip the economy back on an even keel, they will be encouraging to borrowers and suggest that improvements may be on the horizon."

Meanwhile,Mike Staton, directorat StatonMortgages,said: "They won't be the only lender that reduces rates before the end of this year. Christmas always seems to be a good time in the industry with rate reductions not uncommon," he said.

Transport for London has come under fire after controversial campaign adverts supporting assisted dying appeared on the Tube network.

Author and lecturer Adrian Hilton posted a picture of one of the adverts which shows a woman dancing a smiling next to the words: "My dying wish is my family won't see me suffer. And I won't have to."

He described the advert from campaign group Dignity in Dying as "grotesque", due to it being displayed in a place "where suicides aren't uncommon".

"I'm aghast that Global, TfL, mayor of London think it's at all appropriate when cake, bacon and bikinis are banned," he wrote.

Mr Hilton's post has been viewed nearly two million times and has attracted a host of critical responses.

One user said it made them feel "sick", while others branded it "disgusting" and one person said they were "speechless" over the decision.

"These adverts are stupid, insensitive, dangerous and offensive," said another user.

The adverts come ahead of the first debate on the proposed assisted dying bill in the Commons on Friday.

The bill, put forward by Labour MP Kim Leadbeater, proposes legalising assisted dying for people with six months left to live, on the approval of two doctors and a High Court judge.

A TfL spokesperson told Money: "We reviewed this advertising campaign against both our advertising policy and the Committee of Advertising Practice code, and it was found to be compliant."

A spokesperson for Dignity in Dying said its campaign "features real people who want a change in law" because they want the choice for themselves or loved ones.

"The campaign uses positive imagery of these people living life on their own terms, alongside messages about why they are campaigning for greater choice. It is fully compliant with the Committee of Advertising Practice code," they said.

The spokesperson added that it was "disappointing" to see some posters had been "vandalised".

Seventeen months of falling shop prices came to an end this month - as retailers warn higher costs will "inevitably" lead to price rises for customers.

British Retail Consortium (BRC) figures show that though shop prices are down 0.6% compared to a year ago, that's a rise from 0.8% lower in October.

The figures may signal the end of falling inflation given cost pressures being placed on big businesses, according to BRC chief executive Helen Dickinson.

Retailers face a barrage of costs which the BRC forecasts will amount to an extra £7bn for retail businesses next year.

Budget measures such as the increase in employers' national insurance contributions and a higher minimum wage form part of those costs, as does the forthcoming packaging tax to fund recycling efforts.

"Retail already operates on slim margins, so these new costs will inevitably lead to higher prices," Ms Dickinson said.

ByJames Sillars, business reporter

There has been a muted reaction in financial markets to Donald Trump's latest trade tariff threats.

He pledged tariffs on all imports from Canada and Mexico, and additional tariffs on China, from his first day back in office.

That announcement overnight helped send the dollar sharply higher.

Stock market declines, however, were limited, with the Shanghai composite down by just 0.1%.

The Hang Seng in Hong Kong was actually up on the previous day.

The trade tariff talk cast a shadow over Europe, however, with sentiment hit widely.

The FTSE 100, along with its counterparts in Frankfurt and Paris, were down at the open - by 0.3% in London.

The pound was 0.2% down versus the dollar at $1.25.

US stock market futures signalled a flat opening for all the major indices on Wall St.

How do you get millions of people off benefits and back into work?

The government is attemptingto solve this age-old problem today as it launches a new white paper to "get Britain working".

But how robust is its plan? And does the government hold the key to successfulwelfare reform?

Also - Donald Trumphas said he plans to introduce tariffs on US imports from Mexico, Canadaand China on his first day in office.

What does this mean for world trade, and for the UK?

Sky News' deputy political editor Sam Coates and Politico's Jack Blanchard share their daily guide to the day ahead in under 20 minutes.

👉 Listen to Politics At Jack And Sam's on your podcast app👈

Jobcentre reform will be at the centre of the Labour government's plans to "get Britain working again".

Tackling the increasing number of people out of work and relying on the state for income has become a major priority of the state, with welfare costs taking up a sizeable portion of government spending.

According to the government, more than nine million people are economically inactive, with 2.8 million on long-term sickness - a number which has risen significantly since the pandemic.

The government will today be publishing its plans to get more people into employment in the form of the Get Britain Working white paper.

It says its main aim is "to target and tackle the root causes of unemployment and inactivity, and better join up health skills and employment support based on the unique needs of local communities".

Nine in 10 Black Friday offers are cheaper or the same price at other times of the year, a Which? investigation has found.

For the first time, the consumer champion examined the pre-sale price on products, which is displayed by retailers to show the scale of the supposed saving.

It looked at deals on 227 products in last year's Black Friday fortnight to analyse the validity of the savings.

It discovered that for 60% of deals, the product had been available for a higher price for less than half the time it was stocked on shop shelves, suggesting it was common for the item to be discounted.

In one of the worst examples, a Remington Shea Soft Hair Dryer at Boots was £18.99 on Black Friday, claiming to be reduced from £49.99 - a huge 62% off.

But it hadn't been £49.99 at Boots for at least a year.

A spokesperson for Boots said: "Which? reviewed a very small number of our Black Friday deals from last year and in all cases, the items were at a lower price whilst on promotion or when price matched against competitors.

"We remain committed to offering great prices and value for money for our customers all year round, and offer a packed programme of promotions and deals as well as constantly reviewing our pricing to ensure it remains competitive."

At John Lewis, Which? found the retailer's offer on a Sage Nespresso Creatista Pro coffee machine was higher than the deal available 32 days in the six months before Black Friday.

A John Lewis spokesperson said: "In a highly competitive and dynamic market, our customers can find brilliant offers with us all year round. But the recent return of our reimagined Never Knowingly Undersold brand promise - which matches prices with 25 leading retailers - gives customers absolute confidence that they are getting fantastic value.”

At Richer Sounds, a Toshiba 24WK3C63DB TV was advertised as an "inflation busting mega deal" for £139.

In fact, it had been £139 for 80 days straight before Black Friday, and before that it was £10 less.

A Richer Sounds spokesperson said the retailer made it clear that anything marked as "Fantastic Black Friday Value" may have been at a lower price previously and "inflation-busting mega deals" were separate to the promotional day.

At Boots, the ORAL-B iO4Electric Toothbrush (and case) was £89 with a claimed previous price of £240. But it had been £240 for just one day in the previous 12 months. Otherwise, the highest price was £95.

At Currys, the Hisense 43-inch Smart 4K TV with Amazon Alexa was £249 on Black Friday, reduced from £429.

But just 15 days later it was reduced yet further, to £229.

A spokesperson for the brand said this year it has committed to making sure none of its products included in Black Friday events had been cheaper in the previous six months.

More than half of its deals will see products at the lowest price it has ever offered, and Black Friday will be followed by a seven-day price match promise, they added.

Which? has called on retailers to be more transparent on their pricing by only quoting savings against the most recent previous price.

It urged shoppers not to feel pressured into making purchases. Instead, it is worth shoppers taking the time to research deals before parting with their cash.

Basically, negative equity is when your property is worth less than the amount left to pay on your mortgage.

For example: you buy a house worth £200,000 with a £20,000 deposit and a mortgage of £180,000.

After two years in the property, you pay off £10,000 of your mortgage - but another valuation of the house finds that it is now worth only £160,000.

You still owe £170,000 on the mortgage, meaning you have negative equity of £10,000.

Falling house prices, large loan-to-value ratios and being on an interest-only agreement increase the risk of negative equity.

(If you're wondering exactly what equity is, we've got a handy explainer here from another in our Basically... series):

How does negative equity occur?

The housing market can be unpredictable, and a price crash could put even the most financially savvy homeowners in trouble.

A major negative equity crisis hasn't happened since the early 1990s, when it's thought somewhere between one and two million households were left in negative equity due to falling house prices.

But having a low or even no-deposit mortgage puts you more at risk of falling into negative equity as you haven't built up a significant amount of equity in your home.

Similarly, if you're on an interest-only mortgage, you're more at risk because you are only ever paying the interest on the amount you owe, rather than the mortgage sum.

Because you're not paying off the mortgage, you are again not building up equity, meaning a price fall could put you at risk.

What are the consequences?

If you still have a bit of time left on your mortgage term and aren't planning to move, you don't necessarily need to worry about negative equity immediately - you can try and increase your equity or see if house prices rise again.

If you wanted to sell your property, however, it's unlikely that you'd make enough to repay your outstanding loan to the bank, meaning you'd still owe them money.

Unless you have savings, you'd have to find a way to cover the shortfall.

Negative equity can also make it tricky when it comes to remortgaging, as lenders may choose not to take you on as a new customer. If they do, they may only lend against the current value of your home, leaving you with a shortfall and reducing your property options.

How can it be avoided?

There are several ways you can put yourself in a good position to avoid negative equity when going through the house-buying process.

Firstly, do some research. Make sure the asking price is fair for the location and don't be lured into paying over the odds.

Buying at the right time can also help - understanding when prices are high or low can improve your chances of getting a good deal and avoiding a major house price downturn.

If you can afford to, pay a bigger deposit. The larger the amount you put down initially, the more equity you have in your property. With moreinvested, the less chance you'll ever need to worry about negative equity.

And lastly, avoid interest-only deals unless you really need one, to ensure you're building up equity through paying off the mortgage over time.

Read other entries in our Basically series...

Tourists visiting Wales could soon face a tax ofup to £1.25 per person a night.

That would mean a family of four holidaying in Wales for a week would face a bill of £35.

The levy could generate up to £33m, the Welsh government said, which would be used to support local tourism activity and infrastructure.

The bill, introduced by the Welsh finance secretaryMark Drakeford, gives local authorities the option to introduce a levy of 75p per person per night to stay in hostels or on campsite pitches, and £1.25 for any other accommodation.

The earliestthe billmay be fully enacted is 2027, the government said, after local authorities consult their communities.

Read more here:

Tesco is planning to open 150 Express convenience stores in the next three years.

The expansion would see the supermarket giant's estate grow to 2,224 sites and create more than 2,000 jobs across the UK.

Several supermarkets have announced similar plans to expand their convenience empire as they attempt to cater to customers' need for hassle-free shopping.

Asda is hoping to operate 500 Express stores by the end of the year, while Waitrose has set out plans to open 100 convenience shops in the next five years.

Earlier this year, Sainsbury's announced it was expecting to open around 75 Local stores over the next three years.

Morrisons also has plans to unveil 400 locations by the end of 2025.