Welcome to the Money blog, Sky News’ consumer and personal finance hub. Today, we take an overview of the mortgage market and ask whether rate improvements could stall – and we have a travel expert’s tip for stress-free entry into the US.
Friday 22 August 2025 06:14, UK
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Travel expert Simon Calder has a tip for people travelling to the US under Donald Trump.
One of the dozens of executive orders signed by the US president at the start of his second term tightened up security checks for travellers arriving in the country.
Britons heading stateside might find themselves undergoing longer security checks and there have been reports of more people being refused entry, social media checks and high-profile deportations.
Calder has a tip for those concerned about a stress-free entry: fly via Ireland.
US-bound passengers heading through Dublin and Shannon airports are “pre-cleared” by officials.
After checking-in in the usual way and undergoing a security check and a separate enhanced inspection, Calder says travellers are examined at what is “effectively the US frontier”.
This means any and all problems are addressed and surmounted there, instead of when you land.
Calder says then when you land, you’re then treated like a domestic arrival, with no wait and no long queues.
Every Friday, we take an overview of the mortgage market with industry experts and round up the best rates with Moneyfactscompare.co.uk.
Typical two and five-year fixed rate deals are sitting at less than 5% for the first time in more than two years – but borrowers have been warned that recent falls could start to go into reverse.
The average rate for a two-year fix is now 4.97%. For a five-year deal, it’s 4.99%.
Rates have been edging down slowly over recent months, marking positive news for borrowers coming off high two-year fixes, and first time buyers.
But they’re still higher than they were five years ago, meaning those coming off longer term fixed deals are likely to face more expensive bills.
Those thinking that they’ll get a lower rate if they wait a little longer might want to reconsider after reading what several experts had to say.
While economists are still expecting the Bank of England to cut the base rate again in November, brokers are anticipating mortgage rate cuts to slow or stall completely due to higher-than-expected inflation.
Is now the time to fix?
“Reductions have tended to come in small increments, but we could see that slow further or even reverse in some cases if the market reacts badly to the threat of higher inflation than was previously expected,” said David Hollingworth, associate director at L&C Mortgages.
“It does therefore look as though taking a fix now could be a good move. It will secure the rate and avoid losing out if they do tick back up a little, but should still give the chance to switch to a lower rate if further reductions feed through before the new deal completes.”
He said most borrowers opt for a fixed deal, but with the difference between the average two and five year rates being so close, the key issue is deciding how long to fix for.
The reason they are so close, he said, is due to expectations that the base rate may have a little further to fall, and could ultimately bottom out and remain pretty stable for the medium term.
“Rather than be drawn to the lowest monthly payment it’s always worth considering whether additional security could suit your circumstances better,” he said.
“No one knows what will happen to interest rates so it could give greater peace of mind and remove concern over fluctuating payments. It also avoids the need to review the deal every couple of years and any fees that could come with that.”
Peter Stimson, director of mortgages at lender MPowered, said the jump in inflation would “slam the door” on the chance of any meaningful reductions in the coming weeks.
“Competition between lenders is intense, but mortgage rates may well have fallen as far as they can for now. They may even creep up over the next month or so as lenders recalibrate in response to rising swap rates.”
Ranald Mitchell, director at brokerage Charwin Mortgages, said lenders have been keeping the market competitive, but stubborn inflation means they can only go so far.
“For millions of homeowners, that means remortgage deals won’t be getting much cheaper anytime soon,” he said.
Barclays was one of those lenders heating up the rate war this week, reducing rates for borrowers with large deposits to as low as 3.79%.
In the buy-to-let market, cuts to fixed rate deals were made by a handful of lenders, with many of the larger reductions coming from challengers and mutuals.
Coventry Building Society reduced fixed rate mortgages by up to 0.38% and the Mortgage Lender by up to 0.5%.
While the average two year buy-to-let deal has fallen to less than 5%, the five-year rate is still sitting above that threshold at 5.21%.
Adam French, head of news at Moneyfacts, said: “It is promising for landlords to see mortgage costs falling. However, the latest CPI inflation reading of 3.8% has effectively shut the door on the chances of another base rate cut this year.
“As a result, a few modest mortgage rate reductions are the best they can probably hope for in the short term as lenders adjust to the prospect of higher rates for longer.”
Here’s a look at the lowest rates currently on the market for landlords…
For those looking to save on the upfront cost of a deal, a best buy deal might be a good option.
Moneyfacts rounds up the best ones here…
Almost 80% of pubs and restaurants have upped prices as a “direct result” of cost increases enforced in April, according to an industry survey.
Employer national insurance contributions and the minimum wage were raised by the government in the last budget, leaving hospitality grappling with higher costs.
The survey of members of the British Institute of Innkeeping, the British Beer and Pub Association, UKHospitality and Hospitality Ulster found more than half had cut staff to cope with the increases.
It found 73% of members had less than six months of cash reserves – and one in five had none at all.
In a joint statement, the trade bodies said: “Unsustainable tax increases are squeezing businesses, stifling growth and investment, and threatening local employment, especially for young people.
“It is forcing businesses across the sector to make impossible decisions to cut jobs, put up prices, reduce opening hours and sadly limit the support they desperately want to give their communities.”
It urged the government to reduce VAT, amend April’s changes to employer national insurance contributions and introduce lower business rates in the sector at the next budget this autumn.
Estee Lauder ‘cutting prices’ to boost sales
Estee Lauder is reportedly lowering prices on some of its items in an attempt to boost sales.
The beauty powerhouse’s CEO, Stephane de La Faverie, told Bloomberg it was “decreasing prices in some geographies and some products to be able to capture more demand”.
“The minute we do it, a lot more consumers are gravitating toward the lower-priced products,” he said.
Some of the items that it was reducing in price are Clinque’s Dramatically Different Moisturizing Lotion in Europe, the Middle East and Africa; MAC’s Studio Fix foundations in the US and other MAC products in India, the report said.
It comes as Estee Lauder warned that a $100m hit from US tariffs would weigh on its annual profit forecast.
To reduce the impact of US-China tit-for-tat tariffs on its margins, the company said in May it would sell fewer cosmetics
in China that were sourced from its US factories.
Money has contacted Estee Lauder for comment.
Two major US airlines sued over ‘window’ seats with no view
Two major US airlines are being sued by passengers who say they paid extra for “window” seats, only to find themselves given seats next to a blank wall.
Delta Air Lines and United Airlines each face proposed class action lawsuits representing more than a million passengers each.
The damages being sought number in the millions of dollars.
Passengers said Delta and United do not flag these non-window seats during the booking process, unlike rivals such as Alaska Airlines and American Airlines, even when charging tens or occasionally hundreds of dollars for them.
Neither Delta nor United immediately responded to requests for comment by the Reuters news agency.
Labubu maker’s profits soar by nearly 400%
The makers of Labubu dolls – popular with celebrities including Rihanna, David Beckham and Paris Hilton – reported a near 400% increase in profits in the first half of this year after demand for the ugly-cute toys soared.
The dolls’ makers, Pop Mart, has released its half-year results as shares in the company have risen more than 230% since the beginning of 2025.
The Chinese toy company’s sales tripled to 13.9bn yuan (£1.4bn), while net profit soared almost 400% to 4.6bn yuan (£474m) during the first six months of the year, according to the Financial Times.
Around 40% of the sales are said to have come from outside China.
Watch our video on why everyone wants a Labubu below…
The number of people taking out mortgages with a term of 35 years or more has jumped significantly in the last five years, data from the Financial Conduct Authority has shown.
There has been a 251% surge in the number of people aged 36 and over taking out longer terms since 2019, analysis of the data by wealth management firm Quilter found.
A total of 30,338 mortgages with a 35-year term or more were sold to people in that age category between January and September last year, compared with 21,289 the year before.
Lengthy loans have become more popular with people aged 31 to 35 as well, increasing by 56% since 2019, with 98,370 sold in 2024.
High property prices and increased interest rates have prompted some people to extend their mortgage terms to reduce their monthly repayments.
But Quilter said the trend towards longer terms for older borrowers highlights “deeper structural issues”, such as delayed homeownership, limited housing supply and a growing gap between income and costs.
“The jump in older borrowers opting for ultra-long mortgage terms highlights just how stretched affordability has become but doesn’t necessarily need to be viewed negatively,” said Zara Bray, the company’s mortgage expert.
“Given the majority of mortgages are supported by a mortgage adviser, this is a positive example of advice enabling customers to remain in their homes during difficult macroeconomic conditions.
“Extending your mortgage past retirement age may be a sensible lever to pull in the short term, allowing other assets to remain invested.
“However, the key to avoiding challenges with a long-term mortgage later in life is to regularly speak to your adviser, as they will be actively scanning the market for improved rates or new innovative products that address the affordability strain – providing more options at the end of your fixed term.”
Hundreds of thousands of teenagers have got their GCSE results today, and if you’re planning to celebrate tonight, don’t forget to enjoy all the freebies on offer.
We’ve rounded up all the restaurants where that slip of paper will get you free food or discounts…
Nando’s
You’ll be able to get a free quarter chicken or starter when you show your student ID and results at the till.
You’ll need to spend a minimum of £7 to claim the deal.
Ask Italian
You can get a free dessert when showing your results and ordering a main.
You can get up to six desserts for free per adult main you pay for.
You can claim this offer today and tomorrow.
Frankie and Benny’s
You’ll be able to claim a free margherita pizza, which usually costs £11.75, as long as you buy a soft drink.
You’ll need to show proof of your results to a server and they might need to see your ID.
You can’t use this offer with takeaway or delivery orders.
Not all restaurants are taking part in the deal, so it’s worth checking before you go.
TGI Fridays
Between Sunday and Thursday throughout August, you’ll get a main for free when you purchase one.
You need to show your results and say the password GRADSEATFREE.
Zizzi
For today and tomorrow, showing your results will get you an envelope with a mystery freebie inside.
It might be free mozzarella and garlic bombes, starters, desserts, drinks or a meal worth up to £150.
You cannot claim the prize in conjunction with another offer.
Banana Tree
You can get a free katsu curry when ordering a soft drink – even if it’s just a tap water.
You need a voucher to claim the deal, which you can get here by using your email address.
You’ll need to show your results, and tell your server you want to use the voucher when you order.
Bill’s
Show your physical results to a server when you order a main course and you’ll get a free dessert.
You can only claim this deal in person.
Côte Brasserie
You can get a free dessert when you order a main meal and show your results to a server.
You’ll also get a £10 voucher to use at your next visit.
If you’ve got a GCSE in French, you’ll also be able to get free steak frites or a vegan burger.
Byron
Celebrate with a mate with Byron’s 2-for-1 deal.
Order a burger and show your results and you’ll get a second burger for free.
Las Iguanas
You’ll be able to enjoy a free portion of churros without spending a penny.
You just need to show your results, or a photo of them, to your server and let them know that you would like to claim the deal when you order.
Bella Italia
You’ll get a free starter and dessert when you order a main and show your results.
Your family can join in with the celebrations as well because the deal can be claimed for up to six people per table.
Pensioners who rent need £398,000 to cover their living costs in retirement, analysis shows.
That’s £7,000 more than the amount needed in 2024, pensions and savings company Standard Life found.
It used Office for National Statistics data to make a projection of rental prices over a 20-year retirement, but noted that this will vary due to several factors such as supply, interest rates and inflation.
It also uncovered clear regional disparities for renting pensioners, with those in southern regions urged to consider early financial planning to avoid falling short of cash.
Those renting in London will need £833,000 in savings to afford rent over their retirement, while those in the North East will need £269,000.
While the research shows homeownership remains a key goal, one in 10 adults still expect to be renting when they retire.
“While saving more for retirement is increasingly essential, regardless of whether someone plans to rent or own, the reality is that for many, homeownership may no longer be feasible,” said Claire Altman, managing director at Standard Life.
“For those who do expect to be renting in retirement, it will be important to start planning how they will meet these housing costs, especially if rent prices continue to increase, as seen in recent years.”
She stressed that if being mortgage-free is not an option, products like annuities, which offer a guaranteed income for life, may help ensure ongoing costs such as rent and essential bills are met.
By Sarah Taaffe-Maguire, business and economics reporter
WHSmith has declared an accounting error that is “nothing short of a disaster” and a “huge embarrassment to management”, according to a retail investment platform.
The books, stationery and travel chain said it overstated its North America trading profit in profit by around £30m, “largely due to the accelerated recognition of supplier income”.
Headline yearly profit is said to be £25m for North America, down from the £55m it previously expected before the error was identified.
Its share price fell a whopping 39.8% after the news.
While the UK high-street wing of the business had not been as lucrative as the travel side of the company, and has been sold, AJ Bell’s investment analyst Dan Coatsworth said “the North American business is crucial to the company’s growth ambitions”.
He added: “The loose thread of an accounting error in this part of the group will create concern about a potential greater unravelling to come.”
As a constituent of the FTSE 250, the index of the 101st to 350th most valuable London Stock Exchange companies, WHSmith’s share price drop was part of the index’s 0.45% fall.
The UK’s benchmark FTSE 100 shed 0.25% as tech stocks are sold in Europe and the US.
Those looking to book an autumn getaway could benefit from cheaper deals thanks to “shoulder season”, a major travel agency says.
Shoulder season covers the period between busy summer and winter holidays when demand dips, leading to lower prices, Expedia says.
Some stays at the end of September are up to 50% cheaper than peak summer rates.
“Autumn is the sweet spot for savvy travellers,” says Melanie Fish, head of public relations for Expedia Group Brands. “Not only are airfares dropping during the shoulder season, but hotel and holiday rental prices are as well.”
Using average daily rate changes and ticket prices, Expedia has worked out the cheapest days to fly domestically and internationally in autumn:
The most expensive days are:
If you’re willing to pay more for a quieter airport experience, Expedia also worked out the least busy days to fly:
The busiest days are:
By Sarah Taaffe-Maguire, business and economics reporter
The average five-year mortgage rate has fallen below 5% for the first time in more than two years.
The interest rate charged on a typical five-year fixed mortgage deal is now 4.99%, according to financial information company Moneyfacts.
This is a low not seen since 3 May 2023.
That date was just a week before the interest-rate setters at the Bank of England raised their rate to 4.5%. The current rate is 4%.
All this is good news – though yesterday’s inflation data for July has the potential to make the path to lower rates a little bumpier.
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