Business

The Bank of England has just announced a base rate rise from 0.1% to 0.25%. It’s the first rise in the base rate for three years. So what does the rise mean for house prices? Will house prices crash or will they continue to rise in the new year?

Here I take a look at what the interest rate rise means for house prices and mortgages, and what the wider impact on our finances might be.

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Why has the Bank of England raised interest rates?

Interest rates and inflation are closely tied together. Banks, businesses and individuals all rely on borrowing to help them spend money. And lower interest rates tend to encourage higher inflation.

The cost of living rose by 5.1% in the year to November, and inflation is well above the government’s target of 2%. The Bank of England has come under pressure to raise interest rates … Read more

Flutter Entertainment (LSE:FLTR) has struggled over the past couple of months. This has been reflected in a downward move in the share price. Even though the shares are down around 26% over one year, most of this move (24% of it) has come in just the past three months. Yet with a potentially promising outlook for next year, I think that Flutter Entertainment shares could be a good discount buy for me right now.

Short-term struggles

It hasn’t been easy going for Flutter of late. Q3 results released in early November did show some good growth, but it also saw the business cut its full-year guidance.

For example, adjusted EBITDA was cut from previous projections of £1.27bn-£1.37bn to £1.24bn-£1.28bn for the group, excluding the US. In the US, Flutter now expects a loss for the year at the higher end of the previous guidance. It spoke of unfavourable sports results … Read more

In the 1987 movie Wall Street, Gordon Gekko famously says that “money never sleeps”. I’m not sure if Gekko was thinking about passive income when he said that, but these words certainly ring true for me.

My portfolio of dividend shares continues to produce income through the year, even if I ignore it altogether. I’ve been following this approach for years. But today, I want to explain how I’d start a passive income fund from scratch with just £150 a month.

How I’d invest

To invest a small amount each month, I’d use a regular investment service. Many popular brokers now allow monthly investments as small as £25. If I was investing £150 each month, I could theoretically buy six shares at £25. In reality though, I might not do this, as I’d want to minimise the fees I was paying.

For example, if I was paying a … Read more

A number of UK stocks started 2021 well. But somewhere along the way, many have seen their share price rally peter out. So when I came across one that has seen a near consistent increase through the year, I had to update myself on its story. The stock in question is the FTSE 250 sporting goods retailer Frasers (LSE: FRAS). 

The rise and rise of Frasers

The stock’s price crashed, like all others, in last year’s market meltdown. But notably, it started rising from there in fits and starts even before the broad-based stock market rally of November 2020. But come last November, and it really took off. By December of last year, it had reached its pre-pandemic levels and recently, it reached highs not seen since late 2015. Through the year, the the Frasers’ stock has been reaching new five-year highs and yesterday was yet another day when … Read more

The average Brit moves house 5.5 times over the course of their lifetime. And while moves come with their own stresses related to organising mortgages, arranging surveys, packing and unpacking, there is also an additional type of stress many ignore: high costs. Here’s a look at the costs involved and what you can do to reduce them.

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Moving isn’t cheap

According to MoneySuperMarket, Brits spend an average of £748 each time they move house. For those moving the average 5.5 times, that means £4,116 in costs that include buying new furniture (55%), purchasing new household items, such as bedding and kitchen utensils (53%), paying for the post to be re-directed (42%), and changing bill providers (36%). This is 12% more expensive than it was last year when lifetime moving costs averaged £3,417. 

The research also shows that there could be costs to consider when moving house than many … Read more