Pocket money... subscriptions fall as the pandemic ebbs

⬤ You can now get a ten-year fixed rate mortgage that is cheaper than a two-year deal. Halifax has raised its mortgage rates by up to half a percentage point, but the two-year has risen by twice as much as some longer-dated deals.

The lender’s cheapest twoyear fix is now 2.54% whereas it is 2.48% for a five- or ten-year deal. Nationwide is charging the same rate on its five-year fix as on its two-year deal. “This topsy-turvy pricing is largely being driven by the rate at which banks lend to each other, called the swap rate, which is based on predictions of what the Bank of England base rate will be in the future,” says George Nixon in The Sunday Times. Banks expect the base rate to be higher in two years’ time than in five or ten due to high inflation and concerns around long-term growth, meaning swap rates are higher on two-year deals.

⬤ A change to divorce law that came in last week allows “couples to part without holding one party accountable for the breakdown of the marriage”, says the Financial Times. Taking away the need for one party to take the blame for the breakdown of the marriage could slash the cost of getting divorced. A “combative” start to the divorce process can translate to higher legal costs, which eat away at financial resources and cut the pool of assets being split.

The average divorce costs £14,561, according to insurer Aviva. It can cost as little as £300 but if the courts are involved the price rises to an average of £40,000 per person in London, according to 2012 research from lender Novitas, and £13,000 in the rest

of UK.

⬤ Research by Lloyds Bank has found that 1.2 million streaming service subscriptions have been cancelled since summer 2021, says The Independent. Popular TV, film and music streaming services made up 47.1% of regular payments cancelled.

Weight management clubs and gym memberships have also been cancelled by many; regular subscription payments soared by 70% between January 2020 and March 2021.

The new figures indicate a “subscription audit” following the lifting of pandemic restrictions and a rise in day-to-day costs.