Economic growth, mortgage market changes and shelves being restocked: What you need to know this week
Rachel Reeves has made economic growth a top priority for the government, and this week we learned that GDP (the standard measure of an economy’s value) increased by more than expected in the first quarter of the year.
The economy grew 0.7% – 0.1% more than economists had predicted.
But the figures come with caveats. They pre-date the full impact of Donald Trump’s trade war, along with the effect of bill increases that came into force in April.
And though the largest part of the growth came from services, part of the bump was also down to industry rushing to export goods before tariffs kicked in.
Our economics and data editor Ed Conway filed this analysis…
Is it getting easier to become a homeowner?
The figure also risks the Bank of England slowing down its interest rate cuts – as there may be less need to stimulate the economy – according to Peter Stimson, head of product at the mortgage lender MPowered.
But in better news for borrowers, the government has been encouraging lenders to boost growth by loosening mortgage criteria, and we saw an eye-catching launch this week from long-term lender April Mortgages. Its 100% mortgage was broadly welcomed by brokers – read more about that here.
Nationwide became the first major lender to reduce its stress test rates, which are used to evaluate a customer’s ability to afford their mortgage payments if interest rates increase.
The change means applicants can borrow an average of £28,000 more.
“Customers with concerns that they wouldn’t meet a new lender’s criteria, due to the higher rate environment, could find that affordability is now more generous than they thought,” said David Hollingworth, a director at L&C Mortgages.
Hack attacks
In less positive news, Marks & Spencer and Co-op are still suffering the effects of large cyber attacks and this week we reported Dior had been targeted by hackers.
The luxury fashion brand confirmed hackers had breached a database and accessed some of its customer data. It told Money that bank and credit card details had not been accessed.
Co-op customers were reassured the company was in its “recovery stage” after being targeted in a cyber attack two weeks ago.
Shoppers had been frustrated by empty shelves but stores are expected to have better stock availability this weekend, with all payment systems also back up and running.
Average cost of a pint in each part of Britain
For those heading out for drinks this weekend, we had a look at how the price of a pint varies around the country.
Unsurprisingly, a beer will cost you the most in London at £5.44, on average.
Wales comes in as the cheapest place to buy a pint at £4.21.
Tip of the week
If having a spring clean is on the to-do list, it might be worth checking out our tip of the week about how to make extra cash using your empty beauty containers.
Recycling your old cosmetic packages at a few select stores – and being savvy with old perfume bottles – can earn you more than you’d think.
Before you go, remember to check back in on Saturday when our cost of living specialist Megan Harwood-Baynes will be exploring why the spike in gold prices means you should probably check your home insurance
Have a good weekend – we’ll be back with live updates on Monday.
The Money blog is produced by Money live reporter Jess Sharp and edited by Jimmy Rice.
