Photo by Roberto Catarinicchia on Unsplash
Property asking prices rise despite higher mortgage rates, carmakers face £3bn shortfall for loan scandal payouts, plus warning on marathon scams.
Photo by Roberto Catarinicchia on Unsplash
Saturday brought a mixed bag of UK finance news, from surprising property market resilience to billion-pound industry reckonings. Here are the key developments affecting your money.
Meanwhile, fraudsters are targeting disappointed London Marathon hopefuls with fake race place sales, highlighting the need for extra vigilance when making online payments.
Property asking prices have risen in April despite higher UK mortgage rates, according to new data reported by the Financial Times. This increase suggests remarkable resilience in the housing market, even as the Iran war has led to a surge in energy costs that many expected would dampen buyer appetite.
The price rise comes as a surprise to many analysts who predicted the property market would cool significantly under pressure from elevated borrowing costs. For prospective homebuyers, this means competition remains fierce and prices aren't falling as quickly as some had hoped. If you're looking to buy or remortgage, it's worth speaking to a mortgage adviser about locking in rates sooner rather than later, as the market shows little sign of immediate price corrections.
Current homeowners may find this news reassuring for their property values, though those looking to move up the ladder still face the challenge of higher mortgage rates. Our remortgage guide can help you understand your options if your current deal is ending soon.
Major car manufacturers are under severe financial pressure after massively underestimating the costs of compensating UK motor finance scandal victims. Company filings reveal that lending arms of household names including Ford, BMW, Stellantis and Volkswagen may face a combined £3bn shortfall to cover the Financial Conduct Authority's £9.1bn redress scheme, which is due to begin this summer.
If you've taken out car finance in recent years, particularly through dealer arrangements, you may be entitled to compensation under this scheme. The scale of the underestimation by major manufacturers suggests the scandal's impact was far more widespread than initially anticipated, potentially meaning more consumers were affected by unfair lending practices.
The scramble to find £3bn in additional funding could impact these companies' other operations and potentially affect future car financing deals. For consumers currently considering car finance, it's worth being extra diligent about understanding all terms and charges, and consider seeking independent financial advice before signing any agreements.
As excitement builds for the London Marathon on 26 April, fraudsters are exploiting disappointed hopefuls by offering fake race places for sale. The Guardian Money reports that scammers are using running app discussion groups and WhatsApp to convince victims they can buy transferred places for around £79, requesting bank transfers along with personal details.
This scam is particularly cruel as it targets people's genuine sporting ambitions while stealing their money and potentially their personal data. Official London Marathon places cannot be transferred or sold, and any offer to do so should be treated as fraudulent.
Red flags to watch for: Anyone offering to sell or transfer marathon places via social media, requests for bank transfers to unknown individuals, and promises that seem too good to be true after the official ballot has closed.
If you've been targeted by these scams or have already fallen victim, report it to Action Fraud immediately. The incident serves as a broader reminder to be suspicious of unsolicited offers on social media, especially those requiring upfront payments or personal information.
Property prices continue to defy expectations despite higher mortgage costs, so don't delay if you're planning to buy or remortgage. If you've had car finance, check whether you're eligible for compensation under the FCA's redress scheme. Most importantly, stay vigilant against scams – legitimate race places, financial products, or investment opportunities won't require rushed bank transfers to strangers on social media.
For personalised advice on mortgages, pensions, or protection planning, consider speaking to an FCA-regulated adviser who can help you navigate these complex financial decisions.
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