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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.

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Start of mortgage price war?

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.”

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”.

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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.

Mortgage rates have gradually eased in recent weeks and in December the average two-year deal dipped below 6% for the first time in nearly six months.

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Sir Keir Starmer will need honest answers to convince voters to trust him

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Sir Keir Starmer will need honest answers to convince voters to trust him

The location for Sir Keir Starmer’s first big campaign speech was a parish hall in Lancing, West Sussex.

There was Union Jack bunting, Formica tables and endless cups of tea. Quintessentially English, familiar, and relatable.

This is the Starmer his team wanted voters to see as they took the Labour leader back to his roots in the South East of England

Politics live: PM defends ‘bold’ national service policy

It was, his aides tell me, a deliberately personal speech with no new policy, designed to try to convey who Starmer is and what drives him.

Because it’s fair to say that how the Labour leader might appear to who he actually is, are quite different things.

You might remember how Boris Johnson used to goad him as a “lefty Islington London lawyer” and use his title, Sir Keir, to paint him as elite and out of touch.

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Part of this election campaign is about trying to define him in the minds of voters.

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His is the story of a small-town boy, growing up on the Sussex-Kent border, from a working-class background in which the annual family holiday was a trip to the Lake District.

His father was a toolmaker and his mum a nurse, with a debilitating illness that shaped all their lives.

But that isn’t, say his team, very well known beyond the bubble of Westminster.

While I have heard Starmer talk about his tool-making late dad Rodney Starmer countless times, only 11% of the public knows that was what he did for a living, points out one of his team.

“We know the Tories’ strategy in a large part is going after Keir Starmer personally and we want to ensure voters can see who he is, where he comes from and he intends to fight for them,” they said.

“This was a deliberately personal speech that answers the questions of who he is and what motivates him, so it is right to kick off the first full week saying, ‘this is our candidate for prime minister’ when we know people are only starting to tune into the campaign.”

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National service plan ‘desperate’

Starmer says what motivates him is a sense of injustice and an anger within him that politics is no longer in the service of people.

If you want to boil his pitch down to one sentence it is this: “I changed the Labour Party to put it back into the service of British people and now I want to put Britain back into the service of working people.”

The foundation of that, he says, is economic security, border security and national security.

But there is, as the leader acknowledged in this speech, a gap between his Labour and voters.

“I know there are countless people who haven’t decide how to vote in this election,” he noted in his speech. “Do I trust Labour with my money, our borders, our security? My answer is yes, you can.”

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But the question of trust is one that haunts Starmer – the trust gap between him and voters.

When I asked him in a short interview to acknowledge that, he ran through his record as head of the Crown Prosecution Service as evidence that he delivers on promises.

But in politics, he has U-turned many times, most notably on the pledges he made when he was trying to become Labour leader.

When I put it to him that he has a trust issue because of promises broken, he told me he “totally disagreed” with that.

“I think it’s more important to stand in front of the electorate and say, ‘I’m sorry, I can’t now afford what I said before because of the damage being done to the economy.’,” he said.

“What I am saying to the electorate is this, ‘I’m going to tell you in advance of the election what I don’t think we can afford to do, I’m not going to tell you you can have everything and then break a promise’… I think that is basic honesty with the electorate.”

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There are still questions about how honest Starmer is really being. While he will not make big commitments on public services beyond his six “first steps” towards delivering his missions for government by the end of the parliament – on economic growth, NHS waiting lists, teachers in schools, dealing with illegal boat crossings, safer streets and all electricity from renewables by 2030 – he has over the weekend ruled out any national insurance and income tax rises in the next parliament.

It all, given what independent forecasters such as the IMF are saying about the state of public finances, points to spending cuts in the next parliament – but this is something Labour will not be drawn on, saying only it will swiftly conduct a spending review should it win the election.

But as we get beyond the framing – Labour’s “change” message versus the Conservatives’ “choice” one – and into the nuts and bolts of what these two leaders will do, Starmer is going to face more questions on his tax policies and spending plans.

And he will need honest answers if he really wants to convince the public he is a politician worthy of their trust.

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Inflation in UK shops now back at ‘normal levels’ – as prices for some items fall

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Inflation in UK shops now back at 'normal levels' - as prices for some items fall

The rate of price rises in UK shops has returned to “normal levels”, according to new industry figures.

Overall annual shop price inflation eased to 0.6% in May, down from 0.8% in April, the British Retail Consortium (BRC) and NielsenIQ said.

The figure is the lowest since November 2021.

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What does the fall in inflation mean?

Non-food products remained in deflation – at -0.8% in May – a fall from -0.6% in the previous month.

Researchers say shops have been cutting prices in an attempt to revive “subdued” demand for big-ticket items such as furniture and TVs ahead of Euro 2024.

Food prices continued to rise but at a slower rate, with inflation here decelerating slightly from 3.4% in April to 3.2% in May.

The cost of ambient foods that can be stored at room temperature – such as biscuits – has remained stubbornly sticky because of higher global sugar prices.

It follows a sharp fall in retail sales in April, according to official figures released on Friday.

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Why are we still paying more?

The Office for National Statistics (ONS) reported that the number of goods and services bought by households dropped 2.3% during the month, with higher-than-average rainfall partly to blame.

BRC chief executive Helen Dickinson said further action via “future government policy” was needed to support retailers to keep inflation low.

“With an election in a matter of weeks, it is vital that parties detail their support for customers and retailers in their upcoming manifestos,” she added.

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‘I hope it’s good news’

Mike Watkins, from NielsenIQ, said: “After a number of months of falling input prices, we are now seeing food inflation stabilise and retailers continue to pass on price cuts to shoppers.

“Across the industry, whilst inflationary pressure has eased and there is some improvement in shopper sentiment, the unseasonable weather has dampened retail sales, so lower prices look set to continue and promotional activity is likely to increase drive demand.”

It comes after official figures revealed last week that the overall rate of inflation eased to 2.3% in April – its lowest level in nearly three years.

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Bournemouth stabbing: Teen ‘eliminated from inquiries’ after death of woman on Durley Chine Beach

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Bournemouth stabbing: Teen 'eliminated from inquiries' after death of woman on Durley Chine Beach

A 17-year-old boy who was arrested on suspicion of murder after the fatal stabbing of a woman on a Bournemouth beach has been “eliminated from inquiries,” police have said.

The teenager from Lancashire was arrested on Sunday after Amie Gray, 34, was pronounced dead on Durley Chine Beach at around 11.45pm on Friday.

Another woman, 38, who sustained serious injuries is still in hospital receiving treatment.

In an update on Monday, Dorset Police said: “Following fast-time inquiries over the weekend, [the teenager] has now been released without charge and eliminated from inquiries in relation to the incident.”

The force also released CCTV images of a suspect who is wearing dark clothing with his hood pulled over his head.

Police released CCTV images of a suspect after a woman was stabbed to death on a beach in Bournemouth. Pic: Dorset Police
Image:
Police released CCTV images of the believed suspect. Pic: Dorset Police

They believe there was only one offender involved and the CCTV images are of the suspect at the scene, with inquiries continuing to confirm his identity, the PA news agency reported.

Detective Superintendent Richard Dixey appealed for the public’s help in identifying the suspect.

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Woman stabbed to death on beach in Bournemouth

“If you recognise him or have any information, no matter how small, that may lead us to his identity please get in touch immediately,” he said in a statement.

DSI Dixey continued: “Our thoughts remain with the loved ones of the woman who tragically lost her life and the surviving victim as we drive forward our investigation.

“If you were on Durley Chine beach during the night from Friday 24 May to Saturday 25 May 2024 and saw the man pictured or any suspicious activity, we need to hear from you.”

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Bournemouth

He said officers and police staff will be in the town “conducting extensive enquiries, including detailed house-to-house visits”.

‘Truly devastating news’

Dorset Futsal Club, where Ms Gray was a member, paid tribute to the local from nearby Poole in a statement on Facebook.

“The club has received some truly devastating news,” it read.

Flowers left on the beach were two women were stabbed
Image:
Flowers left on the beach where two women were stabbed

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“We cannot put this into words at this time and as a mark of respect to all those affected, we will not be posting anything new for the foreseeable future.”

The club also changed its profile pictures to a plain black background.

A police cordon still remains at the section of the beach where Ms Gray was killed, and the force said the public will “see a very overt and planned police presence in and around the Bournemouth area”.

The beach where the stabbing took place is one of Bournemouth’s most popular, according to Visit Dorset, and is located west of the pier.

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