A long-time employee is seeking assistance as her employer, for whom she has worked for 24 years, is implementing a new clock-in system that pays employees by the minute. This and other personal finance and consumer news can be found in the Money blog. Readers are encouraged to share their own problems or disputes in the comments section.
Michel Roux Jr, a famed restaurateur, has voiced his belief that Generation Z would rather work in delivery services than in restaurants. In other news, there are tips on ensuring a successful MOT for your vehicle.
According to former pensions minister Sir Steve Webb, young homebuyers are facing a risky situation as they take on mortgages with longer terms that extend beyond their retirement age. Data from the Financial Conduct Authority shows that over one million new mortgages have been issued in the past three years with end dates beyond the state pension age. Sir Steve, who is now a partner at a consultancy firm, expressed concern that in a worst-case scenario, borrowers may need to dip into their pension savings to pay off their mortgages. He also noted that these lengthy mortgages deprive individuals of a period leading up to retirement where they could be mortgage-free and boosting their pension.
The data reveals that in the fourth quarter of 2023, 42% of new mortgages had terms extending beyond the state pension age. Of these, 91,394 were taken out by people aged 30 to 39, 32,305 by those aged 40 to 49, 3,676 by under-30s, and 18,854 by people aged 50 to 59. There were also 661 mortgages taken out by individuals over the age of 70. This trend of taking out longer-term mortgages may be influenced by rising mortgage rates since the end of 2021, when the Bank of England implemented measures to address increasing inflation. Longer-term mortgages are appealing when interest rates are high as they result in lower monthly repayments.
In other news, Waitrose has been granted a royal warrant by the King, making it the sole supermarket to hold this honor. This recognition is awarded to companies that have regularly supplied the royal household with goods for at least five years. It allows Waitrose to use the King’s coat of arms on its packaging, advertisements, and stationary. The company was first granted a royal warrant in 1928 for providing groceries and cleaning products to King George V. James Bailey, Waitrose’s executive director, expressed pride and honor in receiving the warrant, stating that it is a symbol of the company’s commitment to quality, service, and high environmental and animal welfare standards. Previous warrants were granted by Queen Elizabeth II in 2002 and by the King when he was Prince of Wales in 2010.
However, according to brand finance expert David Haigh, having a royal warrant may result in higher prices for customers. Haigh notes that companies with a royal warrant can charge a price premium of 10-25%, as the warrant signifies luxury, high quality, and sustainability. He estimates the scheme to be worth billions to the UK economy, as foreign tourists and buyers often prefer royal warrant holder products. In a study, it was found that 100% of Chinese buyers would pay more than 10% for a product with a royal warrant.
