Connect with us

Money

Sub 3% mortgages ‘possible’ as Bank of England hints at more ‘aggressive’ interest rate cuts and lenders make reductions

Published

on

Sub 3% mortgages 'possible' as Bank of England hints at more 'aggressive' interest rate cuts and lenders make reductions

SUB 3% mortgages could be on the cards as the Bank of England hints at more “aggressive” rate cuts.

It comes after a host of major lenders have made reductions to rates.

Sub-3% mortgages could be on the cards

1

Sub-3% mortgages could be on the cards

The news follows Governor Andrew Bailey stating the Bank of England could be “more aggressive” in cutting interest rates.

Advertisement

Mr Bailey said that if inflation remains in check the Bank might be able to be “more activist” over reducing borrowing costs.

The comments have led several experts to bring forward predictions for interest rate cuts.

British interest rates currently sit at 5%. The rate – which is used by banks to determine the interest on mortgages and loans – was reduced from 5.25% in August.

READ MORE ON BANK OF ENGLAND

Members of the Bank’s Monetary Policy Committee (MPC) voted to keep rates at 5% at the latest vote in September, but economists are currently pricing in another reduction at next month’s meeting.

Advertisement

Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments said: “Governor Bailey’s bombshell comments have opened the floodgates to more aggressive rate cuts, with the prospect of sub-3% mortgages, once dismissed as a pipe dream, now emerging as a tantalising possibility for homeowners.

“These views significantly depart from earlier comments advocating for gradual rate reductions, leading swap rates to fall sharply.

Markets are now pricing in an all but certain chance of a rate cut at the Bank’s next meeting in November.”

He added that the prospect of reduced borrowing costs and increased competition in the mortgage market should help drive the rate-slashing momentum towards the end of 2024.

Advertisement

Elsewhere, Adam Stiles managing director at Helix Financial Partners pointed out that Skipton Building Society is already offering a sub-3% product transfer mortgage at 2.89% – although it comes with a hefty 3% fee and is up to 60% loan-to-value.

Best schemes for first-time buyers

Mr Stiles told The Sun: “If the Bank of England delivers one more rate cut, which seems likely after Andrew Bailey’s hints this week, that could quickly feed through into swap rates, which determine lenders’ fixed rates.

“However, we are only likely to see sub-3% rates at lower loan-to-values. We don’t expect to see them widespread at higher loan-to-values until we have a few more rate cuts, which is possible by mid-2025.”

Dariusz Karpowicz, who is director at Albion Financial Advice, said that it’s not “unrealistic” that we’ll see rates drop below 3%.

Advertisement

He said: “All the signs point to it – some rates below 3%! Swap rates are falling, and Andrew Bailey is hinting at a potential decrease. The economic outlook is improving, and lenders are already trimming rates almost every week.

“It’s not unrealistic to see rates dipping below 3% for lower LTVs before year’s end. Of course, only an unexpected ‘black swan’ event could derail this positive momentum.”

What is happening to swap rates?

A swap rate is a rate based on what the markets think interest rates will be in the future.

If the rates rise, then mortgage lenders will look to increase their rates so that they don’t lose out. 

Advertisement

The BoE comments have had a “positive” impact on swap rates.

A number of lenders have already announced repricing and more are expected to follow suit, according to mortgage broker SPF Private Clients.

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “A more aggressive approach to rate reductions has been welcomed by the markets, with swaps falling on the back of the Governor’s comments, which should feed through to even lower mortgage pricing.

“A number of lenders are already in the process of repricing – Coventry [building society]’s two and five-year fixes which top the best buy tables at 3.89 and 3.69% respectively are being pulled tonight, while HSBC is repricing downwards today and NatWest and Barclays are repricing tomorrow.

Advertisement

“Santander is also repricing tomorrow and is likely to top the ‘best buys’ with its new deals – a two-year purchase option at 3.84% for those borrowing 60% loan-to-value and a five-year fix at 3.68%, also at 60% LTV.”

He said the ongoing rate war among lenders is “great news” for borrowers as there are some “really compelling” deals being launched, which will go some way to helping affordability.

Different types of mortgages

We break down all you need to know about mortgages and what categories they fall into.

A fixed rate mortgage provides an interest rate that remains the same for an agreed period such as two, five or even 10 years.

Advertisement

Your monthly repayments would remain the same for the whole deal period.

There are a few different types of variable mortgages and, as the name suggests, the rates can change.

A tracker mortgage sets your rate a certain percentage above or below an external benchmark.

This is usually the Bank of England base rate or a bank may have its figure.

Advertisement

If the base rate rises, so will your mortgage but if it drops then your monthly repayments will be reduced.

A standard variable rate (SVR) is a default rate offered by banks. You usually revert to this at the end of a fixed deal term, unless you get a new one.

SVRs are generally higher than other types of mortgage, so if you’re on one then you’re likely to be paying more than you need to.

Variable rate mortgages often don’t have exit fees while a fixed rate could do.

Advertisement

What are lenders doing?

This week five more mortgage lenders have announced cuts to mortgage rates.

Barclays, HSBC, Halifax, Santander and NatWest are all making several rate reductions across a range of mortgage deals.

It follows a recurring theme of cuts over the past few months.

Since the beginning of July, the lowest five-year fixed rate mortgage has fallen from 4.28% to 3.69%.

Advertisement

Elsewhere, the lowest two-year fix has fallen from 4.68% to 3.89%.

Barclays was first off the bat, announcing cuts that mainly affect first-time buyers and home movers, including some sub-4% deals for borrowers with the biggest deposits.

Its lowest two-year fix for buyers with a 40% deposit or more fell to 3.99% from today.

HSBC has implemented another wave of mortgage rate cuts.

Advertisement

It says all its residential and buy-to-let deals have now been reduced by up to 0.16 percentage points.

HSBC confirmed its two-year and five-year fixed mortgages for both home movers and first-time-buyers have been cut by up to 0.25 percentage points.

Its lowest five-year fix for those remortgaging with at least a 40% equity is now priced at 3.83%.

Halifax was next up to announce a cut taking place from today.

Advertisement

The UK’s biggest lender cut mortgage rates on selected products by up to 0.11 percentage points for home movers and first-time buyers.

Halifax also confirmed reductions of up to 0.24 percentage points for homeowners due to remortgage.

Santander and NatWest also announced a wide range of range cuts for today.

Santander’s fixed-rate deals dropped by 0.29 percentage points for home buyers and those remortgaging.

Advertisement

It means Santander now offers the lowest five-year fix on the market for home buyers purchasing with the biggest deposits.

All its mortgage rates for new build purchases are also reducing by up to 0.19% alongside all its buy-to-let fixed rates, which are dropping by up to 0.17%

Meanwhile, NatWest is also executing some healthy cuts across fixed-rate deals aimed at home buyers and remortgagers.

How to get the best deal on your mortgage

Advertisement

IF you’re looking for a traditional type of mortgage, getting the best rates depends entirely on what’s available at any given time.

There are several ways to land the best deal.

Usually the larger the deposit you have the lower the rate you can get.

If you’re remortgaging and your loan-to-value ratio (LTV) has changed, you’ll get access to better rates than before.

Advertisement

Your LTV will go down if your outstanding mortgage is lower and/or your home’s value is higher.

A change to your credit score or a better salary could also help you access better rates.

And if you’re nearing the end of a fixed deal soon it’s worth looking for new deals now.

You can lock in current deals sometimes up to six months before your current deal ends.

Advertisement

Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.

But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal – but compare the costs first.

To find the best deal use a mortgage comparison tool to see what’s available.

You can also go to a mortgage broker who can compare a much larger range of deals for you.

Advertisement

Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.

You’ll also need to factor in fees for the mortgage, though some have no fees at all.

You can add the fee – sometimes more than £1,000 – to the cost of the mortgage, but be aware that means you’ll pay interest on it and so will cost more in the long term.

You can use a mortgage calculator to see how much you could borrow.

Advertisement

Remember you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks and looking at your credit file.

You may also need to provide documents such as utility bills, proof of benefits, your last three month’s payslips, passports and bank statements.

Does everyone agree sub-3% deals are looming?

In short, no. Not everyone agrees that these -3% deals are on the way.

This is largely due to positive moves being scuppered by global events and the fact that interest rates are notoriously hard to predict.

Advertisement

Not to mention that Labour’s first Budget is just a few weeks away.

Jack Tutton, director at SJ Mortgages told us: “If the pace of rate reductions that we are currently enjoying continues until the end of the year, sub-3% rates would be a real possibility.

“However, there are many things that could derail this optimism. The Autumn Budget will be the biggest hurdle. The decisions that the Chancellor takes will be a make-or-break moment for interest rates.”

Meanwhile, Elliott Culley, who is the director at Switch Mortgage Finance, says he believes there is a “slim” chance of rates hitting below 3%.

Advertisement

He said: “It would be a huge turnaround if mortgage rates were to fall below 3% by the end of the year.

“However, I would expect the chances of this happening being slim based on current domestic and world events.”

Others are pretty certain this will not be the case.

“With all the uncertainty ahead of the upcoming Budget, there is more chance of Bruno Fernandes getting Player of the Month than rates returning to sub-3%,” David Stirling Independent Financial Advisor at Mint Mortgages & Protection said.

Advertisement

“With Middle East issues escalating and causing volatility in oil prices as we enter winter, added to the potential tax hardships to come, it’s hard to see rates normalising below 3% this year.”

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Source link

Advertisement
Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Money

Major cinema chain to shut 3 sites for good IN DAYS leaving film buffs bemoaning ‘major loss’ – and more will follow

Published

on

Major cinema chain to shut 3 sites for good IN DAYS leaving film buffs bemoaning 'major loss' - and more will follow

A POPULAR cinema chain is set to shutter three sites for good in just days – and more will follow.

Film fans were devastated to hear their local movie theatres were waving goodbye permanently on October 6.

Several Cineworld sites will be axed

1

Several Cineworld sites will be axedCredit: Getty

 It comes as Cineworld made the tough decision to axe their branches in Glasgow, Bedford, and Swindon.

Advertisement

Meanwhile, other locations in Bedford, Loughborough, and Yate are also set to close in a matter of weeks.

The sites will shut for good on these exact dates:

  • Glasgow Parkhead (closing October 6)
  • Bedford (closing October 6)
  • Swindon Regent Circus (closing October 6)
  • Loughborough (closing October 13)
  • Yate (closing October 13)

It forms part of a major restructuring plan to help the company survive mid troubling times.

A judge recently gave the green light for £16million to be pumped into Cineworld’s four companies which form the business.

The cash came from the business’s parent company, with an extra £35million to also be made available.

Advertisement

Its four companies. Cine-UK Ltd, Cineworld Cinemas Ltd, Cineworld Cinema Properties Ltd and Cineworld Estates Ltd, will also negotiate leases for each of their 101 sites across the UK.

It comes as the chain is also said to be renegotiating rent agreements for around 50 of its sites.

But, 25 cinemas are set to be unscathed by the restructuring plans and will remain open for the foreseeable future.

A spokesperson for the chain said the plan would enable the business for “the long-term and ensure a sustainable future for Cineworld in the UK.”

Advertisement

However, news of the five closures has devasted locals in the affected areas.

One cinema-goer in Glasgow Parkhead, where Cineworld is set to close on October 6, described the move as “brutal”.

While another said: “I’ve got so many childhood memories of Parkhead Cineworld! Such a major loss.”

It comes after the huge cinema chain revealed it expects to come out of bankruptcy protection in July, after receiving backing from lenders.

Advertisement

The chain filed for Chapter 11 bankruptcy in the US last year due to giant debts and loss of revenue.

Meanwhile, another UK cinema chain has fallen into administration and will close multiple sites immediately.

Empire Cinemas operates 14 locations across the country with 129 screens.

A total of six sites will close with immediate effect, including two under the Tivoli brand.

Advertisement

Plus, major cinema chain Odeon has also been forced to shut down several branches.

The movie giant is bringing the curtain down on five of its cinemas forever.

What is happening across hospitality and the cinema sector?

CINEWORLD isn’t the only chain that’s struggling.

Advertisement

Source link

Continue Reading

Money

British Gas to slash energy prices for thousands of customers this weekend – see if you can save

Published

on

British Gas to slash energy prices for thousands of customers this weekend - see if you can save

THOUSANDS of lucky customers will have their electricity slashed by 50 per cent this weekend.

British Gas will be be offering customers half price electricity at 11:30 and 1:30 on Saturday and Sunday with its Green Flex event.

British Gas will be be offering customers half price electricity this weekend

1

British Gas will be be offering customers half price electricity this weekendCredit: Alamy

With Green Flex events, customers get half-price electricity when it is very sunny or windy and there is lots of renewable energy available.

Advertisement

This is in addition to its usual half price electricity on Sunday between 11am and 4pm for qualifying customers.

The scheme first launched in December 2022 but has been extended multiple times since.

British Gas uses its own forecasting to set the events to test the potential savings and impact on the grid with this scheme.

The discount is available to new and existing PeakSave customers, and all savings will appear as a credit on customers’ energy bills.

Advertisement

So far, British Gas has paid over £13 million to more than 650,000 customers taking part in the scheme.

Crucially, you can only sign up to the scheme if you have a smart meter that can send half-hourly meter readings.

Smart meters come with a display that shows your gas and electricity use in pounds and pence in real-time.

Their major advantage is that they let you more accurately track how your household habits affect your energy usage.

Advertisement

British Gas says if you don’t have a smart meter, it will install one for free in your home.

Other help to pay for energy bills

If you’re not with British Gas, Ovo Energy has a similar scheme which rewards customers for reducing their energy consumption during peak times.

Power Move offers customers up to £10 a month if they cut their usage between 6-9pm, Monday to Friday.

For example, by using the dishwasher in the morning or waiting until after 9pm in the evening to catch up on TV.

Advertisement

You might be able to get free home insulation or have other energy-saving measures installed in your property through the Energy Company Obligation.

The scheme is designed to help low-income households on certain benefits such as Universal CreditChild Benefit and Housing Benefit.

The Government previously told The Sun households eligible for the scheme save around £600 to £700 on their bills each year after having energy-saving measures put in place.

You can find out more on the scheme via the Government’s website.

Advertisement

You might also be able to get help via the Household Support Fund which has been extended by six months until the end of September.

The fund has been shared between councils in England who then allocate their portion to those in need.

That means what you can get depends on where you live and can be a bit of a postcode lottery.

However, the help is usually dished out to those on a low income or benefits.

Advertisement

You should contact your local council to see what help is available.

You can find your nearest council by using the Government’s council locator tool.

Are you missing out on benefits?

YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to

Advertisement

Charity Turn2Us’ benefits calculator works out what you could get.

Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.

MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.

You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.

Advertisement

Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.

Source link

Continue Reading

Money

‘Another bites the dust’, iconic high street chain with 1,400 UK stores to close seaside town centre shop

Published

on

'Another bites the dust', iconic high street chain with 1,400 UK stores to close seaside town centre shop

AN iconic high street retailer with 1,400 UK stores is set to close its shop in a seaside town centre.

WHSmith is preparing to shut its Bournemouth town centre location early next year as shoppers cried “another bites the dust”.

WH Smith will be closing its Bournemouth branch (stock picture)

2

WH Smith will be closing its Bournemouth branch (stock picture)Credit: Alamy
It is understood that the Old Christchurch Road branch could close as soon as January

2

Advertisement
It is understood that the Old Christchurch Road branch could close as soon as JanuaryCredit: Getty

Sources close to the business have revealed that WHSmith is set to close its Old Christchurch Road branch, possibly as soon as January.

While the company has not officially confirmed the closure, a spokesperson hinted at the possibility, The Bournemouth Echo reports.

They said: “We keep our store lease agreements under regular review, including at our Old Christchurch Road store in Bournemouth and will share updates on any changes to the store in future.”

In another setback for Bournemouth’s town centre, the soon-to-be-vacant unit is already being advertised by estate agents Goadsby.

Advertisement

The shop is available for rent at £150,000 per annum, with terms open to negotiation.

The Post Office inside the store, however, will remain operational for now, though its future is uncertain.

A Post Office spokesperson confirmed they have not yet received any closure notice from WH Smith.

Bournemouth residents have reacted to the closure on Facebook, with one user commenting: “Another shop of Bournemouth bites the dust!! Shame.”

Advertisement

Another added: “Honestly not surprised, know one really shops in Bournemouth, there’s more shops in Poole, Bournemouth is mainly coffee shops and restaurants then places to actually do any shopping.

“I’d rather go to Poole or Southampton if I need anything.”

A third replied: “Omg soon [there will] be nothing left. Dead town.”

While another person wrote: “WHSmiths has failed to update with the times, it will only get worse.”

Advertisement

WHSmith is closing a number of branches across the UK as it looks to extend its arm into the travel sector.

The retail giant, which runs over 1,100 stores, has shuttered eight stores since March 2023, including in Manchester and Bicester, England.

Meanwhile, the stationer has waved goodbye to branches in Oban, Scotland, and Ramsgate, Kent.

But it also comes amid a time of expansion for the chain, which is opening 15 branches at airports and train stations in 2024 in a boost for shoppers.

Advertisement

Source link

Continue Reading

Money

Drinks brand once stocked in Sainsbury’s supermarkets plunges into administration

Published

on

Drinks brand once stocked in Sainsbury's supermarkets plunges into administration

A POPULAR drinks brand once stocked in Sainsbury’s and Amazon has been plunged administration.

Natural soft drink company Square Root Drinks appointed and administrator on October 3.

Square Root was once stocked on Sainsbury's and Amazon

1

Square Root was once stocked on Sainsbury’s and AmazonCredit: Square Root

It comes as the website link has been taken down, while stock is unavailable on Amazon.

Advertisement

The announcement was made on X (formally Twitter) by James Beeson, drinks editor at The Grocer.

He said: “Deeply saddened to hear Square Root London has gone into administration.

“I enjoyed my time working for Ed and Robyn – two people who put everything into the brand – tremendously, and owe them a great deal professionally and personally.

“My heart goes out to them both today.”

Advertisement

Square Root made its retail debut in February 2021, launching into Sainsbury’s through the retailer’s Future Brands initiative.

At the time, the company said it was “exciting to be recognised” by the supermarket as a “bold and authentic brand”.

The brand smashed a £250k crowdfunding drive, overfunding by 230 per cent to hit £577,444 from 570 investors in 2021.

Square Root offered a selection of alcohol-free mocktails and natural soft drink flavours, including Ginger Beer, Cola, non-alcoholic gin and tonic, lemonade, and more.

Advertisement

The company was founded in 2012 by Ed Taylor and Robyn Simms in East London.

Administration is when all control of a company is passed to an appointed licensed insolvency practitioner.

It doesn’t necessarily mean the end of the business.

Administration is when all control of a company is passed to an appointed licensed insolvency practitioner.

Advertisement

It doesn’t necessarily mean the end of the business.

But if the administration process can’t rescue the company or find a new owner, this can lead to liquidation.

Liquidation is the process of selling all assets and then dissolving the company completely.

COST OF LIVING PRESSURES

The number of craft breweries in the UK fell from 1,828 at the start of 2023 to 1,815 at the start of the year.

Advertisement

That now stands at 1,748 according to the latest figures up to June from the Society of Independent Brewers and Associates (SIBA).

The SIBA UK Brewery Tracker takes into account all brewery openings and closures to give an accurate picture of the number of active brewing businesses.

Craft breweries have been hit hard by the cost of living crisis and the pandemic.

While many producers pivoted to home deliveries during covid lockdowns, they were then hit by rising costs combined with people reigning ion their spending.

Advertisement

The prices of energy, rents and ingredients have all shot up. They have also faced higher interest rates when borrowing money to grow the business.

SIBA chief executive Andy Slee said when the latest figures on closures were published in July: “Independent brewers are reporting good sales growth and strong consumer demand, yet breweries continue to close.

“For most breweries the challenge is financial pressures from rising costs and market access, as well as lingering Covid debt – something SIBA has strongly lobbied Government for help on.”

UK BREWERY NUMBERS

Advertisement

The SIBA UK Brewery Tracker shows there are 1,748 breweries across the country

It covers the period from April 1 to June 30 this year and the net change compared to March 31, 2023.

  • Scotland 133 (-3)
  • Northern Ireland 29 (-)
  • East 187 (-4)
  • North East 248 (-3)
  • North West 189 (-1)
  • Wales 96 (-)
  • South West 203 (-4)
  • South East 331 (-3)
  • Midlands 334 (-11)
  • UK: 1,748 (-29)

Source link

Continue Reading

Money

McDonald’s customers hail return of ‘greatest burger of all time’ and beg for it to be made permanent

Published

on

McDonald’s customers hail return of ‘greatest burger of all time’ and beg for it to be made permanent

THE RETURN of a McDonald’s burger has caused a wild frenzy among its loyal fans, with many calling for its permanent addition to the menu.

The McRib burger will be back on the Golden Arches menu from October 16 to the joy of many hungry diners who are begging for it to stay.

The McRib burger will be back on the Golden Arches menu from October 16

3

The McRib burger will be back on the Golden Arches menu from October 16Credit: Getty
One user called it "the Greatest McDonalds burger of all time" .

3

Advertisement
One user called it “the Greatest McDonalds burger of all time” .Credit: Gary Stone
Another commenter said: "My absolute favourite, welcome back Ribby. Please don't leave us again".

3

Another commenter said: “My absolute favourite, welcome back Ribby. Please don’t leave us again”.Credit: Getty

Taking to social media, many expressed their enthusiasm for the burger’s return with one user calling it “the Greatest McDonalds burger of all time” .

Another commenter said: “My absolute favourite, welcome back Ribby. Please don’t leave us again”.

Whilst others wrote: “It’s what dreams are made of” and “cannot wait, it’s been way too long”.

Advertisement

Another user added: “I’m so getting one I loved them back in the day”

The pork-based patty, which is lathered in smoky BBQ sauce, pickles and onions and encased in a homestyle bun, is back on menus for a limited time from mid October.

The burger first launched in the UK in 1981 and has been hailed as one of the best Mcdonald’s burgers of all time by some fans.

Thomas O’Neill, head of menu at McDonald’s UK, said: “We have heard our fans loud and clear – the fan petitions and pleas on social – and after almost a decade of anticipation, we are thrilled to bring back this iconic menu item.

Advertisement

“Knowing how well-loved the McRib is, we had very little choice – we had to make it happen.”

Though the fast-food chain’s owners have not revealed how long the popular burger will be on the menu for, limited edition foods are usually around for about six weeks.

It will be on sale for £4.49 as an individual item or £6.19 as part of a medium extra-value meal deal, which means it comes with fries and a medium drink.

McDonald’s worker reveals how McRibs are made and stored in messy trays in ‘nasty’ video

At 509 calories, the burger is more calorific than a Double Cheeseburger, McChicken and Bacon Double Cheeseburger as well.

Advertisement

Despite most diners excitement some have not been so keen, with one social media user likening the product to “gas station food”.

“I must be the only one that thinks it’s horrible,” said another.

Whilst another commenter wrote: “Yay, another reason for me to stay away from McDonald’s” .

One user even joked: “How about the McHeartAttack or the McBigBelly?”

Advertisement

According to one of our Sun reporters who tried it ahead of its launch, despite the burger looking visually unimpressive, the pork patty is super tender and “better than other burgers” .

But, he added, the burger felt quite sickly because of the abundance of BBQ sauce, which he felt was too sweet.

McRib’s addition comes after McDonald’s confirmed the arrival of a pack of mini hash browns, which will come in a portion of five or 15, with prices starting from £1.49.

These will roll out from October 16 but it is unclear whether or not the snack will become a permanent feature on the menu.

Advertisement

Source link

Continue Reading

Money

Wetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good

Published

on

Wetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good

WETHERSPOONS has confirmed that 26 of its pubs have closed for good since July 2023, with five more at risk.

Pubs have closed in locations across the UK, including Stafford, London, Halifax and Penarth.

Wetherspoons revealed the scale of site disposals in its annual report

1

Wetherspoons revealed the scale of site disposals in its annual reportCredit: Getty

A further five pubs have also been put up for sale, four of which are already under offer.

Advertisement

The Ivor Davies in Cardiff is up for sale, while the four pubs under offer are the Sir Daniel Arms in Swindon, the Hain Line in St Ives, the Foot of the Walk in Leith and the Quay in Poole.

Under offer may mean that a bid is being considered or has been accepted.

But as the sale has not been finalised the pub remains on the market.

Wetherspoons regularly reviews the branches it has up for sale and has often taken venues off the market to continue operating as part of the pub chain.

Advertisement

In its annual report published today the pub giant said the disposal of the 27 pubs it has closed gave rise to a cash inflow of £8.9 million.

Wetherspoons has sold the freehold of premises it owned outright and returned others to their landlords.

The pub sites sold may reopen to welcome drinkers under their new owners.

Landlords could also find new tenants, so Wetherspoons’ departure doesn’t necessarily mean the loss of a pub for locals.

Advertisement

The sites closed are:

  • The Saltoun Inn, Fraserburgh – sold
  • Widow Frost, Mansfield – sold
  • General Sir Redvers Buller, Crediton – sold
  • Butler’s Bell, Stafford – sold
  • Coronet, Holloway Road, London – sold
  • White Hart, Todmorden – sold
  • Asparagus, Battersea – sold
  • Mock Beggar Hall, Moreton – sold
  • Sir Norman Rae, Shipley – sold
  • Lord Arthur Lee, Fareham – sold
  • Market Cross, Holywell – sold
  • The Cross Keys, Peebles – sold
  • The Regent, Kirkby in Ashfield – sold
  • An Geata Arundel, Waterford – sold
  • Jolly Sailor, Hanham – sold
  • Millers Well, Purley, Halifax – sold
  • The London & Rye in Rushey Green, Catford – sold
  • Bankers Draft, Eltham – returned to landlord
  • Sir John Arderne, Newark – returned to landlord
  • Night Jar, Ferndown – returned to landlord
  • Moon and Bell, Loughborough – returned to landlord
  • Capitol, Forest Hill – returned to landlord
  • Hart and Spool, Borehamwood – returned to landlord
  • Alfred Herring, Palmers Green – returned to landlord
  • Tichenham Inn, Ickenham – returned to landlord
  • Bears Head, Penarth – returned to landlord
Major UK pub chain announces sweeping closures & job losses

Wetherspoons has also opened two new sites in the last 12 months – The Captain Flinders near Euston Station and the Star Light at Heathrow Airport, and The Grand Assembly in Marlow.

A number of sites have also been expanded including the Red Lion,
Skegness; the Talk of the Town, Paignton; the Albany Palace, Trowbridge and the Mile Castle, Newcastle.

Wetherspoons, which has around 800 pubs across the UK, continues to draw crowds with ambitions openings.

A huge new £3.5million pub opened in the countryside town of Marlow, in Buckinghamshire, on September 24.

Advertisement

Plus, Wetherspoon opened its first pub at a holiday park at Haven’s Primrose Valley in Filey, North Yorkshire in March.

In an exclusive interview with The Sun, Wetherspoons boss Sir Tim Martin he is planning to ramp up plans to launch “Super Spoons” pubs – making existing sites even bigger.

It has recently made a big bet on giant pubs, such as its one in Ramsgate which can cater up to 1,400 punters.

And work on its “Super Spoons” in Newcastle is now underway which will include a 26-bedroom hotel and 3,000 sq ft beer garden.

Advertisement

Martin also exclusively revealed to The Sun that he would not be putting up prices this year in good news for drinkers.

In its annual report to for FY24 Wetherspoons reported sales of £2,036million – an increase of 5.7% on the previous year.

Like-for-like sales were up 7.6%, driven by an 8.9% increase in bar sales and a 5.6% increase in food sales.

Profit before tax saw a dramatic uptick from £42.6m in FY23 to £73.9, in FY24.

Advertisement

Martin has previously said he aims to have 1,000 pubs.

What is happening to the hospitality industry?

Many food and drink chains have been struggling in recent years as the cost of living has led to fewer people eating out.

Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.

Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.

Advertisement

Some chains have not survived. Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.

Pizza giant Papa Johns is shutting down 43 of its stores soon.

Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans.

How can I save money at Wetherspoons?

Advertisement

FREE refills – Buy a £1.50 tea, coffee or hot chocolate and you can get free refills. The deal is available all day, every day.

Check a map – Prices can vary from one location the next, even those close to each other.

So if you’re planning a pint at a Spoons, it’s worth popping in nearby pubs to see if you’re settling in at the cheapest.

Choose your day – Each night the pub chain runs certain food theme nights.

For instance, every Thursday night is curry club, where diners can get a main meal and a drink for a set price cheaper than usual.

Advertisement

Pick-up vouchers – Students can often pick up voucher books in their local near universities, which offer discounts on food and drink, so keep your eyes peeled.

Get appy – The Wetherspoons app allows you to order and pay for your drink and food from your table – but you don’t need to be in the pub to use it. 

Taking full advantage of this, cheeky customers have used social media to ask their friends and family to order them drinks. The app is free to download on the App Store or Google Play.

Check the date – Every year, Spoons holds its Tax Equality Day to highlight the benefits of a permanently reduced tax bill for the pub industry.

Advertisement

It usually takes place in September, and last year it fell on Thursday, September 14.

As well as its 12-day Real Ale Festival every Autumn, Wetherspoons also holds a Spring Festival.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Advertisement

Source link

Continue Reading

Trending

Copyright © 2024 WordupNews.com