Money blog: 'I bought a new car but it's been back to dealership six times with same fault - what can I do?' (2024)

Princess Diana's family home has gone on the market for the first time in 22 years - but interested buyers should note it comes with a £10.95m price tag.

The four-story property in Mayfair, London, has a reception hall, a drawing room, a library, two bedroom suits with walk-in wardrobes and ensuite bathrooms, and private underground parking.

If you're worried about the stairs inside such a tall house, don't be - it also comes with a lift connecting all levels.

The top floor is a self-contained suite, with a bedroom, sitting room, terrace, dressing room and bathroom.

There's also two bedrooms on the lower ground floor, accompanied by two bathrooms, another dressing room and a kitchen.

The house is where Princess Diana was first introduced to the al Fayed family at a lunch party in 1996.

Her stepmother, Raine Spencer, had encouraged her to get to know the family, including Dodi al Fayed, who she had a brief relationship with until they died in a car crash in Paris in 1997.

Mrs Spencer was at 24 Farm Street when she was told about Diana's death.

Since the early 2000s, the house has belonged to the founders of Pyms Gallery in Mayfair, Alan and Mary Hobart.

But after Mr Hobart's death in 2021 and Mrs Hobart's death earlier this year, it is now being sold on the instructions of their executors.

"With its aristocratic and royal connections, we anticipate significant interest in this house from discerning buyers around the world. It is a trophy home with an illustrious history," said Danish Arif, head of Mayfair sales at estate agents Chestertons.

By James Sillars, business news reporter

Let's start the new week by looking at the prospects for oil prices.

They're up by around 14% since 4 June - by 3% since last week alone - and standing at levels last seen in April.

It has left Brent crude at $85 a barrel.

If sustained, this level could prompt small rises at the fuel pumps in the coming weeks.

The outlook for Brent is currently coloured by a multitude of factors.

In support is the wealth of global hostilities, such as the war in Ukraine and the conflict between Israel and Hamas.

Worries about demand, particularly in China, are providing some kind of check.

We'll have a clearer idea of the path for oil later this week, with analysts noting that it could go either way.

The FTSE 100 is starting the week on the back foot after a 0.4% decline on Friday.

It is trading at 8,234 - down three points.

Some of the negative sentiment has been linked to continuing worries about a delayed US interest rate cut and the snap parliamentary election in France.

The latest polls give the National Rally party of Marine Le Pen a clear lead ahead of the first round of voting on Sunday.

Upwards pressure on the FTSE is coming from consumer-facing stocks amid evidence that spending is picking up after a spring dominated by foul weather.

Typical first-time buyers are paying around £400 more per month for their mortgage than five years ago, Rightmove has found.

The average mortgage payment for those who have just stepped on the property ladder has risen by 61% since 2019, from £667 to £1,075 per month.

The property website calculated the monthly amount based on first-time buyers having a 20% deposit, a 25-year mortgage term and five-year fixed deal at an average rate, which by its calculation is currently about 5.04%.

Asking prices for a typical first home, with two bedrooms or fewer, has also increased to £227,757 - 19% more than 2019.

The North West had seen the biggest jump at 33% since 2019, while London has seen the smallest percentage rise of just 6%, Rightmove found.

"As rates have increased over the last five years, the amount that a typical first-time buyer is paying each month on a mortgage has outstripped the pace of earning growth," said Tim Bannister, Rightmove's property expert.

"Some first-time buyers are looking at extending their mortgage terms to 30 or 35 years to lower monthly payments, or looking at cheaper homes for sale so that they need to borrow less."

Our Money team reporter Katie Williamsexplored this issue last week. You can read her piece below...

Amazon is planning a major revamp of its loss-making Alexa - but the new tech could come with a monthly fee.

Dubbed "Remarkable Alexa", according to insider sources, the updated device would use conversational artificial intelligence technology.

The tech upgrade would mean the speaker could order you a takeaway from Uber Eats, write an email and perform other more complex tasks.

It could also eliminate the need to repeatedly say "Alexa" during a conversation, offering more personalisation, the sources told Reuters.

But a more powerful Alexa could mean people will have to pay a $5 (£3) monthly fee to access it.

The sources said there was currently no plan to introduce the service as part of the Prime membership, which customers already have to pay for.

Amazon's chief executive, Andy Jassy, has taken a personal interest in seeing Alexa revamped, promising a more "intelligent and capable" device to shareholders back in April.

An update may also be critical for Amazon tokeep up with rivals such as Google, Microsoft and OpenAI, which have all seen a positive reaction from their recently released AI chatbots.

However, the sources cautioned the plans for Alexa, including price and release date, could be altered or cancelled altogether.

That wouldn't be unusual. Amazon has been plagued by false starts in developing AI.

The company had reportedly been working on several devices last year, such as Alexa-enabled homeenergy consumption trackers and a carbon monoxide detector, which still haven't come to market.

We're back for another week of consumer news, personal finance tipsand all the latest on the economy.

This is how the week in the Money blog is shaping up...

Monday: This week's Money Problemfocuses on a repeatedly faulty new car.

Tuesday: We're continuing our eight-partWomen in Businessfeature - interviewing women who are bossing their industry. And this week'sBasically...explains everything you need to know about guarantors.

Wednesday: This week's Cheap Eats is with a Michelin-starred chef from North Yorkshire.

Thursday: Savings Championfounder Anna Bowes will be back with her weekly insight into the savings market.

Friday: We'll have everything you need to know about the mortgage market this week with the guys from Moneyfacts.

Running every weekday, Money features a morning markets round-up from theSky News business teamand regular updates and analysis from our business, City and economic correspondents, editors and presenters -Ed Conway,Mark Kleinman,Ian King,Paul KelsoandAdele Robinson.

You'll also be able to streamBusiness Live with Ian King onweekdays at 11.30am and 4.30pm.

Bookmarknews.sky.com/moneyand check back from 8am, and through the day, each weekday.

The Money team is Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young, Ollie Cooper and Mark Wyatt, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

By Katie Williams, Money team

Many of us envisage retirement as a peaceful winding down after several decades of hard work.

But an increasing number of mortgage holders face having to put their relaxation on ice as they're left with no choice but to work past their pension age to pay off long-term mortgages.

Homeowners are still reeling from painful interest rate increases by the Bank of England (BoE) that pushed high street mortgage rates as high as 6.8%. Those who have taken out or renewed their mortgage in the past year have likely had their monthly payments rocket.

A recent BoE report revealed nearly half of all mortgages issued in the last three months of 2023 were for 30 years or longer, while two in five were issued to borrowers who would be past state pension age at the end of their mortgage term.

Different figures from UK Finance show 41,580 first-time buyers took out mortgages with terms of 30 years or more in the last quarter of 2023, of which around 15,700 (38%) were longer than 35 years.

'I'll be paying until I'm 75'

One single homeowner from Hove, who asked not to give her name, said even though she had a "healthy deposit" for the flat she bought a year and a half ago, the mortgage was still a "big stretch" and she will be paying it off until she is 75.

"I can't get it down, I need to keep working," she said.

"When I'm older I will have no other source of guaranteed income other than company pension and state pension, they won't cover my mortgage and other expenses."

Stephen Eblet's mortgage is set to run until he is 68 - one year past his pension age. He says he has enough in his private pension to pay it off, but doing so will impact his finances in retirement.

The 62-year-old self-employed plumber, who lives in Gristhorpe, near Scarborough, suffers with musculoskeletal pain and is worried about "making the finish line" at 67, a retirement age he says is "far too high" for manual labourers.

"My anxiety levels are rocketing," he said. "I'm terribly worried about having to finish work early because of back problems and where that will leave me with a mortgage and how it will impact my lifestyle should I have to retire."

Inheritance, downsizing and interest rate falls - how Britons are planning to make their mortgages shorter

Taking out a long-term mortgage doesn't necessarily mean you're locked in.

There is the option to shorten the term at the end of your fixed-rate period or move to a less expensive home to cut off some of the debt.

This is the case for Danielle Steele, 39, from Swindon, who has a mortgage with her husband that is currently set to end when they are 71.

They plan to downsize once their two daughters leave home in around a decade or so, meaning they're not too concerned at this point.

Father-of-four David Clarkson, 41, who lives in Flintshire, said he and his wife recently opted for a mortgage that will take them to 75, with a rate fixed for three years. It kept his payments within £150 of what they were paying before.

He is hoping interest rates will drop in the next three to six years to allow them to pay it off in time.

"So far we've not had to change too many aspects of daily life, but this will change in the coming years if wages don't go up or prices continue to rise," he said.

Steve, 51, from Scotland, said his mortgage goes three years past his pension age - but it's a "calculated risk".

"We hope we'll get inheritance to pay off our mortgage sooner. Not that you want older relatives to die, but it seems a lot of people need to rely on that these days," he said.

Long-term means high interest

Gerard Boon, managing director of online mortgage broker Boon Brokers, says staff have seen a rise in clients reporting that they'll have to worker longer and later in life to settle their bills.

"We always ask how long people are willing to work. Five or six years ago or even just pre-COVID… people would normally say their retirement age [is] 66 or 67 years old and that was fairly standard. But now, more often than not, people are saying [they'll] have to work until 70 or maybe 75," he said.

He noted that some lenders have "cottoned on" to this fact and are raising the age cap on their mortgages as a result. Others remain more cautious, such as Halifax, which recently cut the cap from 75 to 70 years for some of its products.

Mr Boon said his advice to clients is always to opt for a shorter term if possible, as they will pay "far more" interest over the course of a longer-term deal - but for many it's just not feasible.

"I would say the vast majority of applications, especially for first-time buyers in the age range of 20 to 25, they've opted for the longest time period," he said.

"People are trying to get their costs down... I think a lot of people are taking these longer mortgage terms with the hopes that they'll be able to refinance at a later date to shorten the term."

What are lenders' rules around retirement age?

UK lenders will have age limits for mortgage lending - one being a cap on the maximum age you can take one out, and another for paying them off.

Different lenders will have different rules on what age they require the debt to be paid by.

The upper age limit for paying off a mortgage typically ranges between 70 and 85, while most will not let you enter a new deal past the age of 80.

Individual circ*mstances, such as income, employment status and credit history, will also affect eligibility as they would for any borrower.

Holidaymakers are being urged to avoid a car hire company ranked last in a customer satisfaction survey.

Goldcar, which operates in countries like Spain, Portugal, France and the US, achieved an overall score of 52% in the annual report by consumer group Which?.

It was awarded two stars out of a possible five for value for money, car description matching reality, record given of damage to car, and customer service.

One fifth (20%) of respondents who used Goldcar said they had issues with the condition of the car, and 23% reported being charged extra either when they picked up or returned the car.

The car hire company with the second-lowest overall score was Dollar (56%), followed by Record Go (57%), Budget (61%) and Sixt (64%).

"Booking car hire should be straightforward, but all too often it feels like the wild west, with travellers lamenting fraught experiences, poor customer service and spurious fees," said Rory Boland, editor of magazine Which? Travel.

"Goldcar in particular is best avoided, with customers repeatedly reporting serious issues from pressure selling to poor customer service."

A spokesman for Goldcar, which is owned by Europcar Mobility Group, said: "Goldcar is of course disappointed about the results of the Which? report.

"The company takes customer care very seriously with a code of ethics for counter sales and a guide of good sales practices, both of which are reviewed annually based on customer feedback.

"We are committed to investigating any incidents where a customer believes they have received a service that does not match expectations for a low-cost brand and continue to invest in staff training and best practices."

Throughout the week, lots of our readers send in comments on the money stories that have caught their eye, and every Saturday we bring you a selection of them.

Our analysis of the best ways to make your holiday cash go further garnered some attention.

Experts explained the benefits of using plastic overseas, what type of cards are best to use and how to avoid a common mistake that can cause you to spend more.

They were also quizzed on when and where holidaymakers should get cash, and what exchange rates to look for.

Money blog readers said:

Instead of carrying cash, why not use a gift card instead?

And if you use the taxis or minicab, check the prices first. And why not get a weekly or monthly bus pass if you can?

Marc Ricketts

We used a Halifax clarity card on a recent holiday to Thailand. It's a great holiday card but it's a pain using it online.

They want a text confirmation - a problem if you're using a local sim. Card is locked and there's no way to unlock it without phoning home.

Gareth Rona

Ourcost of living specialist Megan Harwood-Baynes shared her experience of putting her home on Airbnb, making £700 from a spare room in two months.

But she advised prospective users of the app to make sure they have a good radar for vetting people.

Not everyone was convinced...

Before boasting about being an Airbnb host, people should know about the damage they do to local areas. Because of them rents keep going up. People who grew up locally are forced to move away.

Tissiam

The majority of leasehold flats don't allow short-term lets.

Why does the UK allow Airbnb to operate if they don't secure copies of leases to confirm leasehold properties have the permissions required for those hosts either unaware or too arrogant to comply with terms of leases?

Als

Pearl Jam fans were left upset after paying for tickets to see the band - only for the price to be cut in half less than two weeks before the show.

Readers took the opportunity to share their concerns about the industry.

It's shocking how much ticket prices have doubled in the last few years. Its making concerts as much as a holiday when you include transport.

Holly

Why aren't the tickets for gigs broken down to see where the money goes, i.e. taxes, VAT, and actually to the artist . Fees are getting out of hand.

Ian

Two interlinked stories dominated the money world this week - inflation and interest rates.

As expected, the Bank of England held the base rate at a 16-year high of 5.25% on Thursday.

The nine-person Monetary Policy Committee voted 7-2 in favour of holding them - the same split as the last time it met.

Oureconomics and data editor Ed Conway said: "Everyone now is kind of in a holding pattern until August when the next meeting takes place.

"That is the moment where people think there could be a cut. We're going to potentially be waiting until August and maybe even November - it really depends on what happens with the data."

Rates have been elevated over the last few years to reduce consumer spending and encourage saving - when that happens, price rises (inflation) usually slow.

Now inflation is down to 2% (May's figures were released on Wednesday), isn't the battle won?

That's certainly the interpretation Rishi Sunak wants you to believe - and there's no doubt inflation falling is massive after three years of spiralling prices instigated by the Ukraine war and subsequent energy crisis.

It's worth noting too, as the government did, that the UK is faring well internationally when it comes to inflation...

But there was bad news buried in the good news. Services inflation was expected to drop much more sharply - instead it remained at 5.7%.

Business correspondent Paul Kelso explained: "While the headline rate has been reined in, primarily by food prices rising more slowly than a year ago, inflation for all services remains at 5.7%.

"This is precisely the sort of 'sticky' above-target domestic inflation the Bank has always feared would linger after energy price shocks fell away, and the reason it forecasts the rate will actually rise in the second half of the year."

Economists are also concerned about this - analysts at Pantheon Macroeconomics see inflation creeping up to 2.9% by November.

Wage growth also remains high and, while this is great for workers, it is inflationary.

Setting all the economics aside, there was also a school of thought the Bank will not move during an election campaign - to make sure it does not influence the polls, which we saw on Wednesday.

After the rate decision, the most likely date for a cut was pushed back from August to September, according to market forecasts.

This is bad news for borrowers - though savers may enjoy higher rates on their cash for longer.

Some savings rates have been rising, and others have been falling, but the top five easy access accounts are still paying more than 5%.

It's also worth reiterating, as always, that inflation falling doesn't mean prices are - for that, we'd need negative inflation.

Conway focused on overall inflation over the past three years - rather than annual inflation - to see how much prices have gone up.

His charts, as always, are eye-opening...