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Nationwide Offers Sub-4% Mortgage Rate Amid Growing Competition
Nationwide Building Society, the UK’s largest building society, is now offering a mortgage with an interest rate below 4% as lenders intensify competition ahead of the Bank of England’s upcoming rate decision. Starting Wednesday, Nationwide will reduce its five-year fixed mortgage rate for new homebuyers with a 40% deposit to 3.99%.
This move by Nationwide marks the first time since February that they have offered rates below 4%. Other lenders are also lowering their rates, anticipating a potential central bank rate cut in August. Mortgage analyst Kylie-Ann Gatecliffe suggests this could signal the beginning of a “rate war” among major banks.
Sarah Tucker, founder of The Mortgage Mum, expressed optimism, stating, “Although this is only available for purchases right now, we hope that the re-mortgage market will follow.” The high borrowing costs, driven by the central bank’s rate currently at a 16-year high of 5.25%, have been challenging for homeowners.
There is hope among some analysts that the Bank of England will cut rates at its next meeting on 1 August, given the current trend of falling inflation. Central banks typically adjust borrowing costs based on inflation rates and economic conditions.
With around 1.6 million borrowers needing to re-mortgage as their current fixed-rate deals expire, many are facing significantly higher repayments compared to their previous rates, which were often below 2%. Tucker highlighted Nationwide’s new rate as a “hugely positive sign for the mortgage market” during these turbulent times, marked by high living costs and borrowing rates.
The average five-year fixed homeowner mortgage rate has decreased to 5.40% from 5.47%, and the average two-year fixed homeowner mortgage rate is now 5.81%, down from 5.88% on Monday, according to data from Moneyfacts.
Finance expert Rachel Springall from Moneyfactscompare.co.uk commented, “Mortgage rates could fall further, but it is difficult to tell how quickly and by what margins.” She added that while some are hopeful for an August rate cut by the Bank of England, opinions among economists are mixed, with some predicting a potential cut not until September due to persistent service inflation.
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Over 60 Injured in Drone Strike on Northern Israel
More than 60 people have been injured following a drone strike in northern Israel’s Binyamina region, according to emergency response organization United Hatzalah. The attack, claimed by Hezbollah, targeted a training camp of the Israeli Defence Forces (IDF) Golani Brigade, located between Tel Aviv and Haifa.
The victims, whose conditions range from critical to mild, were evacuated to five regional hospitals via ambulances and helicopters. Israeli media reported that 67 people were injured in total, with four in critical condition and five others seriously wounded.
Hezbollah’s media office said the strike was in retaliation for Israeli airstrikes in southern Lebanon and Beirut earlier this week. The group used a “swarm of drones” in the attack, and reports suggest the low-level drones launched from Lebanon did not trigger Israel’s early warning alarms.
Footage showed wounded individuals being rushed into emergency vehicles, including helicopters, as medical teams worked swiftly to provide care. The injured were taken to hospitals in Hadera, Tel Hashomer, Haifa, Afula, and Netanya, where medical teams are working to stabilize those in critical condition.
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Officials Urge Caution in Aftermath of Hurricane Milton: ‘Don’t Go Sightseeing’
Although Hurricane Milton has passed, officials are warning residents across Florida to remain cautious as the storm’s lingering effects, including severe flooding, continue to pose risks. In Hillsborough County, where Tampa is located, rescue teams have been hard at work after the river overflowed, causing over 6 feet (1.8 meters) of flooding. The Hillsborough County Sheriff’s Office, traveling by boat, has been ensuring the safety of residents in the flood-affected areas.
While multiple Florida ports have reopened, including Key West, Port Everglades, and Miami, several remain closed, such as those in St. Petersburg, Fort Myers, and Jacksonville. Georgia and South Carolina have also seen some port reopenings, but many areas still face closures and flooding risks.
President Biden provided an update on the storm’s damage, estimating the total cost to be around $50 billion. He emphasized that more financial aid would be necessary and called on Congress to approve additional funds as the true extent of the damage is assessed.
Officials are also urging people to stay off the roads and avoid “sightseeing” in affected areas to prevent further accidents or fatalities. “We’re going to need a lot of help,” Biden said, stressing the long recovery ahead after Milton and Hurricane Helene, which struck the region just weeks earlier.
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Florida Reels as Hurricane Milton Leaves Six Dead and Destruction in its Wake
At least six people have died after Hurricane Milton tore through Florida, leaving behind a trail of destruction. As emergency responders navigate floodwaters and clear debris from fallen trees and power lines, the full extent of the storm’s toll remains unclear.
In St. Lucie County, four people lost their lives after multiple tornadoes struck the region. In central Florida’s St. Petersburg, police chief Anthony Halloway confirmed two more deaths.
President Joe Biden addressed the nation, acknowledging the uncertain scope of the damage and the dangers that remain. He emphasized that while the storm has passed, the aftermath can often bring additional fatalities. “There’s still very dangerous conditions in the state,” Biden warned.
He also stressed the need for substantial financial aid to support the state’s recovery. Biden called on Congress, currently in recess, to return and address the urgent emergency funding needs, underscoring that Florida’s recovery will be a “long haul” requiring billions of dollars in aid.
The president assured that immediate relief efforts are underway, ensuring that residents affected by the storm receive the support they need.
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