HSBC has become the latest lender to cut mortgage rates amid predictions that more banks and building societies will follow suit in the coming weeks.
The high street bank said its new deals will be introduced on Thursday. They will include a two-year fixed remortgage rate of 4.49% and a five-year deal of 3.94%.
First Direct, a division of HSBC, is also set to announce mortgage rate cuts on Friday.
A HSBC spokesperson said: “Our new fixed mortgage rates will see significant cuts across the board which will be a welcomed move.
“Specifically, for customers wishing to remortgage, our rates will start from 3.94% for a five-year deal at 60% LTV [loan-to-value] with a £999 fee.”
It comes after Halifax, the UK’s largest mortgage provider, reduced its rates by up to 0.83 percentage points on Tuesday, including a two-year deal of 4.68% with a £999 fee.
Lloyds Banking Group, which owns Halifax, said its Club Lloyds division had also cut its rates by the same amount.
Meanwhile Leeds Building Society announced it had “decided to start strong in 2024” by reducing rates across its mortgage range by up to 0.49 percentage points.
Matt Bartle, the building society’s director of products, said: “In 2023 the mortgage market was constrained due to the ongoing pressure of the increasing cost of living, but as a lender we want to play our part to try to overcome the hurdles people face and help more people into homeownership.”
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The UK’s average two-year fixed mortgage rate was 5.92% on Wednesday, down from 5.93% the day before, according to figures from Moneyfacts. It said the average five-year rate also dipped to 5.53%.
It comes amid expectations the Bank of England will cut interest rates this year as inflation falls.
Several other lenders cut their rates just before Christmas – including Barclays, which reduced its deals by up to 0.43 percentage points.
Nationwide said its mortgage rates were under “regular review”, while Virgin Money told Sky News it “monitor[s] the market closely”.
David Hollingworth, associate director at L&C Mortgages, said: “These cuts are just the latest salvo in an increasingly fast-moving market…
“These cuts follow hot on the heels of new year improvements by Halifax and others will be bound to follow suit. We thought the new year would start with a bang and that’s proving to be the case.”
Aaron Strutt, product director at Trinity Financial, said: “The lenders will want to have the strongest possible start to the year.
“It seems highly likely that more banks and building societies will improve their rates over the coming weeks and fight it out to offer the cheapest deals.”
Simon Bridgland, director of mortgage broker Release Freedom, also told The Times that Halifax’s move could be the “start of a manic week” of rate cuts.
A crew member remains missing after an oil tanker and cargo ship collided in the North Sea off the coast of East Yorkshire.
Dozens of people abandoned the vessels after the crash just before 9.50am, with the Coastguard rescuing 36 people.
All 23 on board the oil tanker Stena Immaculate are accounted for – but one of the 14 crew members of the Solong cargo ship is still missing.
A Coastguard search was called off around 9.40pm, while both vessels were both still on fire.
One of the 36 people rescued was taken to hospital.
Sky News understands there is a five-mile air and sea exclusion zone around the location of the incident, which may be widened to 10 miles if later required.
Image: Both ships are on fire following the collision
The Stena Immaculate was carrying jet fuel and was on a short-term charter to the US Navy at the time of the incident.
The cargo ship was reportedly carrying 15 containers of sodium cyanide and an unknown quantity of alcohol.
Two maritime security sources told Reuters there was “no indication” of any malicious activity or other actors involved in the incident.
Image: Ambulances leaving the scene
‘Multiple explosions onboard’
US logistics group Crowley, which manages oil tanker Stena Immaculate, confirmed the vessel had released some jet fuel after sustaining a ruptured cargo tank.
The firm said it initiated its emergency vessel response plan and is “actively working with public agencies to contain the fire and secure the vessel”.
Crowley added: “Our first priority is the safety of the people and environment. We will provide more updates as information becomes available.”
The prime minister’s official spokesman said it was an “extremely concerning situation”.
He said: “We thank the emergency services for their rapid response. I understand the Department for Transport is working closely with the coastguard to help support the response to the incident.
“We’re obviously monitoring the situation, we’ll continue to coordinate the response and we’re grateful to emergency personnel for their continued efforts.”
Meanwhile, Hull City Council leader Mike Ross has called for the UK government to set out a rapid response plan in response to the events.
Transport Secretary Heidi Alexander later praised the work of the emergency services, adding: “The Maritime Accident Investigation Branch has begun a preliminary assessment and I am working closely with the MCA (Maritime and Coastguard Agency) as they conduct an assessment of any counter pollution response which may be required over the coming days.”
Coastguard’s emergency message
Moments after the collision, a message broadcast by the Coastguard warned other ships to stay away from the area.
In audio shared on social media, the Coastguard can be heard warning Solong “has collided” with Stena Immaculate.
“Both vessels are abandoning,” the message continued.
“Vessels who have firefighting equipment or can assist with search and rescue, contact Humber Coastguard.
“Stena is carrying Jet-A1 fuel, which is on fire and in the water. Vessels – remain at safe distance.”
Image: East Midlands Ambulance Service sent an incident response unit
‘Inspectors are gathering evidence’
The Marine Accident Investigation Branch is now investigating the collision.
A spokesperson said: “Our team of inspectors and support staff are gathering evidence and undertaking a preliminary assessment of the accident to determine our next steps.”
The oil tanker was sailing under a US flag, while the Solong cargo ship was Portuguese-flagged, according to Marinetraffic.com.
The Solong had been due to travel to Rotterdam in the Netherlands after departing from Grangemouth in Scotland on Monday morning, Marinetraffic.com shows.
Image: A map from Marinetraffic.com shows the oil tanker (red) and the cargo ship before the crash
Moving images on the tracking site suggest the oil tanker had remained stationary as the Solong headed straight towards it before the collision.
It is believed the Stena Immaculate, which was travelling from Greece to the UK, was anchored at the time.
David McFarlane, director Maritime Risk and Safety Consultants, told Sky News it can take up to an hour to raise an anchor – meaning the tanker might not have had time to get out of the way.
It comes as Martyn Boyers, chief executive of the Port of Grimsby East, said the container ship may have been on autopilot at the time of the crash.
“Autopilot just steers a course, they don’t deviate, there’s no bend in the sea,” he added.
Image: The Portuguese-flagged vessel Solong. File pic: NAC
Image: The US flagged Stena Immaculate. File pic: Kees Torn
Image: Video shows smoke billowing from the ships. Pic: North Yorkshire Weather Updates
Visibility in the area had been poor before the collision this morning, according to the Met Office.
“Areas of fog and low cloud lifting as winds increase through the morning, with some warm, if rather hazy sunny spells expected in places for a time,” it said on Monday morning.
The crash involving a cargo ship and oil tanker off the East Yorkshire coast is bad news for the sea, fish and air in the area. What we don’t know yet is quite how bad it will be.
That depends on a few things – but the speed of the collision, clouds of filthy black smoke from the fires and the leaked fuel are certainly worrying.
Analytics firm Vortexa estimates the 183m-long tanker was carrying about 130,000 barrels of jet fuel (kerosene), which is now leaking into the sea.
Jet fuel is not as sticky or viscous as heavier types of oil, thankfully, so it’s less likely to clog the feathers and fur of birds and seals. It can also be broken down by natural bacteria.
But it can still poison fish and kill animals and plants on the shoreline if it makes its way into the soil there.
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The Marine Conservation Society has pointed out the site in the Humber estuary is close to some protected areas and is important for seabirds and harbour porpoises.
And both ships will have been powered by a dirtier, heavier kind of oil – likely marine gas oil or heavy fuel oil, though we don’t know the details yet.
Heavy fuel oil is nasty stuff.
Image: Pic: Bartek Smialek/PA
Cheap, thick and tar-like, it can smother animals and is very dangerous if they consume it, and is extremely difficult to clean up. Let’s hope this isn’t creeping around the North Sea already.
We don’t know how much of either the jet fuel or the oil powering the ships has leaked, or how much will be burned off in the violent fires – which themselves are ploughing black smoke and filthy air pollution into the surrounding atmosphere.
And we don’t know for sure what was on the Solong cargo ship and if, or what, will go into the sea.
Cargo ship ‘had sodium cyanide on board’
It was carrying 15 containers of sodium cyanide among other cargo, according to a report from maritime data provider Lloyd’s List Intelligence.
The container vessel was also transporting an unknown quantity of alcohol, said the casualty report – an assessment of incidents at sea – citing a message from the local coastguard.
Plastic takes hundreds of years to break down, and potentially can choke or trap animals.
Many of us have seen that uncomfortable viral video of a turtle having a straw yanked out of its nose. Previous accidents on cargo ships have seen plastic Lego pieces wash up in Cornwall 25 years later.
Secondly, the impact depends on the sea and weather conditions around it.
Things like the wind and currents affect how an oil spill spreads in the sea. Scientists can draw up computer models to simulate how the oil could behave.
Thirdly, it matters how quickly this is all tackled and then cleaned up, if necessary, and if it can be.
Usually the slower the response, the worse the impact.
The coastguard has said the incident “remains ongoing” and it has started assessing the “likely counter pollution response” that will be required.
Such a response might need the help of numerous public bodies: the government environment department, the transport department, the Environment Agency and the Maritime and Coastguard Agency.
So for now the best we can hope for – aside from the welfare of the people involved – is that not all the oil is spilled or burnt, that conditions are calm and that rescuers and those cleaning up can work swiftly.
Passengers travelling to Heathrow Airport are facing delays on the road after a vehicle caught fire in a tunnel.
“Due to an earlier vehicle fire, road access to Terminals 2 and 3 is partially restricted,” the airport said in a post on X shortly before 7am.
“Passengers are advised to leave more time travelling to the airport and use public transport where possible.
“We apologise for the disruption caused.”
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AA Roadwatch said one lane was closed and there was “queueing traffic” due to a vehicle fire on Tunnel Road “both ways from Terminals 2 and 3 to M4 Spur Road (Emirates roundabout)”.
“Congestion to the M4 back along the M4 Spur, and both sides on the A4. Down to one lane each way through one tunnel…,” it added.
National Highways: East said in an update: “Traffic officers have advised that the M4 southbound spur Heathrow in Greater London between the J4 and J4A has now been reopened.”
The agency warned of “severe delays on the approach” to the airport, recommended allowing extra time to get there and thanked travellers for their patience.
The London Fire Brigade said in a post on X just before at 7.51am it was called “just before 3am” to a car fire in a tunnel near HeathrowAirport.
“Firefighters attended and extinguished the fire, which involved a diesel-powered vehicle. No one was hurt and the airport has now confirmed the tunnel has re-opened.”
Travellers writing on social media reported constrasting experiences, with @ashleyark calling it “complete chaos on all surrounding roads”, but @ClaraCouchCASA said she “went to T5 and got the express to T3”, describing the journey as “very easy and no time delay at all. 7am this morning. Hope this helps others”.
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