Every month, we pull together the most relevant stories affecting your employees' financial lives.

This month

🏠 Mortgage price war heats up - Two lenders are now offering rates below 4% for the first time this year.

💰 Trump threatens tariffs - Whilst no tariffs are imposed on the UK yet, the effects could be far reaching.

🤔 Is your pension invested in line with your values? - A Scottish Widows survey shows that there are barriers to ethical investing in workplace pensions.

🏠 Mortgage price war heats up

Good news for borrowers. Two lenders are now offering rates below 4% for the first time this year.

What this means for your people

Following recent cuts, the Bank of England is expected to lower interest rates two or three times this year, which could help bring mortgage rates down further. However, changes won’t happen overnight, and rates may not fall significantly without a major shift in the economic outlook for the UK.

If you have a fixed deal expiring this year, it's worth reviewing options early. Locking in a rate now provides security, but if rates drop further, you may be able to switch.

For those on variable-rate mortgages, switching to a fixed rate could offer savings, as standard variable rates currently average 7.78% and tracker mortgages remain elevated at 5.21% on average. Keep an eye on fees, as some lower-rate deals come with high charges that could outweigh potential savings. For instance, Santander’s 3.99% fix comes with a £1,999 fee for its 2 year product, and £1,749 for 5 year fix.

💰 Trump threatens tariffs

Whilst no tariffs are specifically imposed on the UK yet, the effects could be far reaching economically.

What this means for your people

Tariffs are taxes on imported goods, collected by customs authorities.

Donald Trump has announced tariffs on key allies, including Canada and Mexico, with plans to extend them to the European Union. It remains unclear whether the UK will be directly affected.

However, a 25% tariff on US steel imports will impact the UK steel industry, as reduced US demand is likely to impact UK exports. If further tariffs are imposed, key UK industries such as pharmaceuticals, car manufacturing, and chemicals—among our largest exports to the US—could see their competitiveness reduced.

Tariffs often lead to higher prices for consumers, as businesses pass on the cost, and domestic production may not be as efficient. This could push up inflation, adding to domestic economic pressures. Market uncertainty has already driven gold prices to record highs, as traders brace for potential trade disputes. If a full-scale trade war develops, the global economy could face further disruption.

🤔 Is your pension invested inline with your values?

A Scottish Widows survey shows that there are barriers to ethical investing in workplace pensions. 72% of 6,000 UK employees surveyed value responsibly invested pensions. There’s growing demand for employers to prioritise sustainability in workplace pensions.

What this means for your people

Many savers want their investments to reflect concerns like climate change, and plastic waste. However, nearly half of employees don’t know whether their pension is responsibly invested.

Despite interest in sustainability, many workplace pensions don’t offer responsible pensions as the default. Younger employees see this as a priority, with 79% wanting access to responsible investment options. The survey revealed that many employees are unsure how to switch their pension investments, and some worry about potential costs or returns. A lack of clear information also prevents people from making informed choices.