• Skipton Building Society has announced that in March it will raise its standard mortgage rate from 3.5% to 4.95%. The building society has scrapped the ceiling on its standard variable rate, which in effect guaranteed that customers would not pay more than 3% over the base rate. The move has been blamed on “unprecedented market conditions” – the building society has said the ceiling rate will be introduced when market conditions improve.
• New proposals from the Financial Services Authority (FSA) will give homeowners who fall into arrears on their mortgage repayments greater protection. Excessive charges will be limited. The FSA also wants lenders to stop monthly arrears charges when customers have already agreed on a plan to clear missed payments. And whatever borrowers do pay will have to go towards clearing missed payments and not charges, which should be paid later, says the FSA. Around 400,000 homeowners were in arrears in the three months up to September, according to The Times.
• The Financial Services Authority (FSA) has also fined Standard Life Assurance £2.45m for misleading 98,000 customers about the risks of investing in its Pension Sterling Fund.
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• Tesco has launched its ‘Buy One, Get One Free – Later’ deal. The idea is to cut food waste on two for the price of one deals. Instead of taking both items on the day, you can collect the second one later, using a voucher.
• 2010 Isa season is “starting to hot up”, says Michelle Slade in The Daily Telegraph. Several new deals have been announced, including Newcastle Building Society’s Balance Building Isa, which pays 3.4%. This includes a bonus of 1.4% – provided you make at least nine monthly deposits of between £100 and £500 over a year.
• The Post Office has launched a new issue of its Fixed Rate Cash Isa, paying 3% over one-year. Leeds Building Society offers 3.5% over three years.