Vicky Shaw

Average two- and five-year fixed mortgage rates in the UK rose slightly after recent declines as renewed conflict in the Middle East increased financial market uncertainty and raised lenders’ funding costs. Several lenders have begun raising fixed-rate deals, prompting warnings that borrowers waiting for further reductions may need to act quickly to secure lower rates.

Average asking rents in Britain reached record levels in the second quarter, with £1,397 outside London and £2,791 in the capital. Supply remains slightly lower than last year, though tenant competition has eased since 2022. Regional disparities persist, with northern areas showing stronger growth. Andy Burnham has pledged broader cost-of-living action and long-term increases in council housebuilding, while analysts note that falling mortgage rates may encourage landlords to continue renting rather than selling, helping moderate further supply pressures.

New rules place buy now pay later services under Financial Conduct Authority oversight, requiring affordability checks, clearer information and stronger consumer protections. Customers can now take complaints to the Financial Ombudsman Service, which expects around 2,000 cases this year. Industry experts and debt advisers support the changes, noting they should prevent unaffordable borrowing while still allowing BNPL to be used responsibly. Companies including Klarna and Clearpay welcomed the regulation, which formalises existing practices such as reporting to credit reference agencies and pausing accounts after missed payments.

Buy now pay later services will come under Financial Conduct Authority regulation from July 15, requiring lenders to provide clear agreement terms, conduct affordability checks and support customers in financial difficulty. BNPL usage may begin influencing credit decisions. Customers will be able to take complaints about regulated agreements made from July 2026 to the Financial Ombudsman Service after first contacting their lender. Debt advice charities encourage monitoring spending, noting repayment terms and seeking support from organisations such as StepChange, Citizens Advice and National Debtline if struggling with repayments.

ATM network Link expects cash withdrawals to rise by up to £15 million on Saturday as fans prepare for England’s World Cup quarter-final against Norway, with potential additional increases if England win. Hot weather usually reduces ATM use, but the match is expected to offset this trend, according to Link’s strategy director Graham Mott.

A sharp rise in holiday‑related scams stole more than £42,000 from Santander UK customers between April and June, up 32% from the previous quarter. Fraudsters used tactics such as fake holiday packages and bogus rental listings. Santander advised verifying bookings with providers directly and being cautious of pressure‑driven deals. Overall scam losses tracked by the bank fell significantly to £13.35 million, driven by a notable decrease among customers aged 55 and older. Chris Ainsley of Santander warned that scammers continue to adapt their methods despite recent progress.

Estimated annual authorised push payment fraud losses have fallen by £73 million following the introduction of mandatory reimbursement rules requiring banks to compensate victims. Frontier Economics found a net consumer benefit from improved reimbursement processes and reduced fraud, while the Payment Systems Regulator said firms are investing more in prevention. UK Finance reported higher total losses last year due to differing data-collection methods, noting lengthy delays in reporting romance and investment scams. Industry figures warn that despite reimbursement, the underlying drivers of large-scale fraud remain insufficiently addressed.