Money Video round-up: inflation, stockmarkets, energy and free loans for pet lovers

Our round up of the key news in personal finance this week

Simon Read
Personal Finance Editor
Tuesday 16 February 2016 16:31 GMT
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Simon Read at London Live

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Inflation up - how it hits your mortgage and savings

Inflation climbed to 0.3 per cent in January, according to officlal figures. There's like to be further climbs but the Bank of England reckons inflation won't top 1 per cent this year. That eases the pressure on the Bank to increase interest rates.

That's good news for borrowers, less so for savers. Mortgage rates are already very low and some experts are now predicting they could fall even further. But if you're on a standard variable rate, now appears to be a good time to fix an afforable low rate for between two and five years.

For savers the news is grim. There seems little hope of better savings news for some time. After seven years of rock bottom rates, that's not the news savers want to hear.

Stockmarket turmoil - 3 year low followed by big bounce back

The Footsie fell to its lowest level for three years last Thursday. Then on Friday it climbed 3 per cent followed by a further 2 per cent climb on Monday. Confused? If you're an investor you should expect such fluctations and ignore them. It's what the stock market does.

More important is to concentrate on long-term plans and make sure your portfolio reflects your view of where the market is likely to go.

Five things you need to know about the Footsie

Hooray for independent energy companies - giving customers 7% cuts

There have been more gas bill cuts announced, this time by independent suppliers. Ecotricity is cutting charges by 7 per cent while Good Energy is reducing gas bills by 7.2 per cent.

The Big Six energy giants have announced cuts of around 5 per cent. “The 5 per cent reductions that we’ve seen so far just aren’t enough,” said Dale Vince, Ecotricity founder.

Why the Big Six energy companies don't deserve your loyalty

Deal of the week - free loans for pet lovers

Pet insurance is expensive, especially as animals get older. But a new loan company aims to help those with no cover – and who then can't afford expensive emergency treatment.

CarefreeCredit offers loans from £250 for use against any veterinary bills. Crucially, the charge is 0 per cent over 12 months, meaning expensive interest rates don't add to the bill. However, if you take a loan over 24 months, the charge is 9.9 per cent. How are the loans free? Vets pay. They're charged £10 a month to enrol with the lender, plus a small amount of each loan made.

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