Good afternoon and welcome to The 99: the home of financial news and insights made simple. You can count on accessible, trustworthy, and unbiased news insights every Monday.

This week, you’ll find your usual round-up of must-know financial stories, plus:

• Our exclusive £50 gift from bill-switching service Nous is still going! Give Nous a Go and Get your £50 bonus

• Two community dilemmas:

  • How do deal with bad PMT at work?

  • Should I quit a tech job with nothing lined up?

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Alice & the GFY team x

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Donald Trump, US Tariffs and how it affects the UK

🤔 Recap - What tariffs*? 🇺🇲 🇨🇦 🇲🇽 🇨🇳

• The US President, Donald Trump announced a 25% tariff on all goods coming from Mexico and Canada, with a 10% on Canadian energy products and an additional 10% tariff on Chinese imports. 

• In response, Canada and Mexico announced counter tariffs on US goods.

• Subsequently, the tariffs on Canada and Mexico were suspended for 30 days following last-minute negotiations among all three countries.

• China announced counter tariffs, and are looking to challenge Trump's tariffs at the World trade Orgainzation (WTO)

*Tariffs - taxes or levies on imports / foreign made goods imposed by the government of a country. 

🤔 Why is Trump imposing these tariffs? 🤔

• As part of his campaign, he pledged to impose tariffs on U.S. imports at rates matching those levied on U.S. exports by trading partners.

• To tackle illegal migration and smuggling of opioid fentanyl and other drugs to the US.

• To reduce or control the US trade deficit* i.e., the US buys more from other countries than it sells. 

*Trade Deficit - when a country buys or imports more than it sells or exports.

What is the UK’s position - Trade Surplus or Deficit? 📊

• According to the 2023 data by the US Bureau of Economic Analysis, the UK is in a trade deficit to the US i.e., the US sold more to the UK in 2023 estimated at £12bn. 

• On the other hand, the Office of National Statistics (ONS) estimated that the UK was in a trade surplus to the US i.e., the UK sold more to the US in 2023 estimated at £71bn. 

• However, both agencies reviewed this and attributed the discrepancies to differences in their methods of measuring trade. 

The UK’s top exports to the US include pharmaceutical products, cars, mechanical power generators, organic chemicals and scientific instruments.

How will it affect the UK? 💬

According to the BBC, if President Trump imposed a blanket tariff on UK exports to the US it would affect around £60bn of goods. Despite not being directly hit, the UK could be impacted negatively: 

• These trade wars could result in disruptions to the global supply chain and exchange rates, increasing  business costs, and making UK imports or trade in general, more expensive.

• Rising inflation and elevated prices of goods as businesses will pass these costs on to the final consumers. 

• Slower economic growth globally and consequently,  the UK. The National Institute of Economic and Social Research (NIESR), estimated that the 25% tariffs the US has threatened to impose on Mexico and Canada could reduce UK GDP growth by 0.1 percentage points in 2025.

• Higher interest rates and borrowing costs due to spill-overs from the US markets. 

• Possible diversion and flooding of these US industrial exports to other markets like the UK affecting locally made goods.

Responses from leaders so far… 🗣️

_{GFY Home Report}

February Mortgage & Property News

Two things: your home could be taken off you if you do not keep up your mortgage repayments and just a heads up, if you decide to take a mortgage with Meet Margo we earn a little commission

🗞️ What you need to know?

• Last week The Bank of England lowered its base rate from 4.75% to 4.5%. This rate influences what banks charge people to borrow money or pay on their savings.

• Cutting the rate makes borrowing cheaper and is intended to boost spending - but it can also mean smaller returns for savings.

❓What this means for you:

On a tracker rate?

This tracks the base rate, so you will see lower monthly repayments. Your lender should let you know how this will affect you.

On a Standard Variable Rate (SVR)?

This rate is set by your lender, not the Bank of England, so changes don’t always follow the base rate. SVR rates are usually higher and unpredictable—it’s worth checking if you can switch to a better deal.

On a Fixed Rate?

Your rate stays the same. But if your mortgage is ending soon ( 4-6 months) you can lock in now, but be prepared rates could be higher than when you last shopped for a mortgage.

Undecided?

Locking in early safeguards you against potential rate hikes. And if rates fall, you can always explore a cheaper deal.

🏡 First time buyers and those looking to move?

For most borrowers, this latest rate cut won’t immediately lower fixed mortgage rates. That’s because lenders have already factored in expected cuts through swap rates and other economic indicators.

This is why mortgage rates can shift even when the base rate stays the same.

But be warned…

From the 1st April 2025 Stamp Duty thresholds are reducing. The tax-free threshold for buyers drops from £250K to £125K.

• For first-time buyers, it drops from £425K to £300k.

• That means you’ll pay more on stamp duty if you buy or sell after these changes take effect.

🔮 Crystal ball: What can we expect now, what the experts are saying?

Santander has set its sights on a base rate of 3.75% by the end of 2025, while HSBC is forecasting 2.75%.

But for these targets to come to fruition, the Bank of England will need to implement consistent rate cuts.

The challenge for the Bank is striking the right balance - keeping inflation under control while also fostering economic growth.

It’s a tricky path: too slow, and borrowing remains expensive; too fast, and inflation could increase again.

👌 Our advice for borrowers?

Don’t wait for the ‘perfect’ moment. Locking in a rate now provides much-needed certainty and protection against future fluctuations.

The market moves quickly and securing that stability today while keeping your options open for tomorrow is often the smartest move.

❓You asked: How long should I fix for if I need to re-mortgage right away?

• How long you should fix depends on your future plans and other factors. If you’re likely to move in a couple of years, a shorter fix could help you avoid early exit fees.

• Right now, five-year fixes are often priced more competitively, offering lower monthly payments which can be key for affordability.

• However, the best rate for you will depend on so many other things, including your

  • income

  • credit score

  • equity in your home (LTV),

  • and even your home's EPC rating.

There’s no one-size-fits-all answer, which is why speaking to an expert is key. A good mortgage adviser will help you weigh up your options so you can make an informed decision with confidence.

Your home could be taken off you if you do not keep up your monthly mortgage

About Meet Margo 

Meet Margo, an award-winning, tech-first mortgage brokerage founded in 2022 by Matt and Claire Towe, is dedicated to empowering women in homeownership. The company provides mortgage and protection advice across the UK and is an Appointed Representative of PRIMIS Mortgage Network.

Meet Margo's commitment to accessibility means the service they provide is fee-free.

Get in touch with Meet Margo to discuss a mortgage here

Valentine’s Day is fast approaching, and alongside Christmas Eve, it's one of the most popular times for proposals.

💎Diamond rings have long been the go-to, and potential buyers are in luck – over the past two years, the price of natural diamonds has fallen by 26%.

💎Lab-grown diamonds, meanwhile, are down 74% compared to 2020 prices.

👀Why the drop?

The decline in demand is largely due to:

• Inflation squeezing company profits

• The cost-of-living crisis slowing down luxury sector sales as households cut back

• Fewer marriage proposals post-COVID and an increase in singletons worldwide

• Growing interest in lab-grown diamonds especially from Gen Z

• Ethical and environmental concerns about the provenance of natural diamonds

• Waning sales in China/ a significant decline in consumer spending and product sales within the Chinese market

However, the Diamond Dealers Club and the Diamond Manufacturers and Importers Association insisted the natural diamond market was stable and even saw some improvement last year:

💎How are lab-grown diamonds made?

Lab-grown diamonds are made in a laboratory, usually through one of two methods which mimic the natural process:

1. High Pressure High Temperature (HPHT) – a carbon seed is melted under extreme pressure and heat.

2. Chemical Vapour Deposition (CVD) – hydrogen and methane gases are used to form diamond crystals.

HPHT diamonds are sometimes considered to be of higher quality, while CVD diamonds may have internal spots and slight browning.

👀 What else should I know before buying?

Many assume lab-grown diamonds are better for the environment, but that’s not always the case.

While some labs use renewable energy, most don’t disclose where they source the large amounts of energy required for diamond production.

Paul Zimnisky, a diamond industry expert, said companies that are transparent about their supply chain and use renewable energy like this “represent a very small portion of production.”

💎Ready to rock?

• If you’re after lab-grown diamonds that don’t cost the earth, do your research to ensure the company uses sustainable practices.

• Alternatively, antique or second-hand rings can be a more affordable option – plus, you can restyle or resize them.

The Soaring Popularity of Jellycats: Why Everyone Wants One

Once a beloved brand for kids, Jellycats are now the latest obsession among adults, fuelling a surge in collectible toy sales. But what’s driving this phenomenon, and why are these soft toys so expensive?

🤔What Are Jellycats?

From cuddly avocados to smiling fried eggs, their unique, playful designs have captivated millions.

🤔Why the Surge in Popularity?

The rise of the “kidult” trend has played a major role - an adult who takes inspiration from children’s ability to play, live and laugh without limits. (aka. a big kid).

• One in five toys in the UK is now bought by adults for themselves.

• Social media platforms like TikTok are key, with unboxing videos and pop-up experiences driving brand awareness and FOMO.

• For many, Jellycats offer a nostalgic escape and a sense of comfort amidst life’s stressors.

🧸 Most Popular Jellycats:

💷 What’s the Price Tag?

Jellycats have a wide price range, starting from around £11 and going up to over £700 for rare editions.

The brand’s use of scarcity marketing and high-quality materials drives both its price and desirability.

Affordable Alternatives:

It’s been announced this week that Lidl is launching plush food-themed dupes like croissants, broccoli, donuts, pretzels, and strawberries for just £2.99 each.

These smiling, character-faced toys provide a budget-friendly alternative to Jellycats, with the croissant dupe offering a remarkable 88% saving compared to the £25 original.

Sources/Read More:

US Tariffs and the UK

• How could Trump's tariffs affect the UK?
  BBC

• Will Donald Trump’s tariffs hurt US consumers?
  BBC

• Trump says he will announce reciprocal tariffs on many countries next week
  Reuters

• How Trump's tariffs could cost consumers in the US and UK - even if he spares Britain
  Sky News

Cheap date? Diamond prices crash in 2025

• Maths of Love: Stats and Facts About Valentine’s Day
  Casio Education

• Engagements Are Set to Rise in 2024, Experts Say. Here’s What’s Driving People to Tie the Knot
  CBS News

• Diamond Prices Fall: Natural vs Lab-Grown
  Fortune

• Diamonds Lose Their Sparkle as Prices Come Crashing Down
  The Guardian

• Don’t Propose with a Diamond
  The Economist

• Mined or Made: The Great Debate Over the Future of the Global Diamond Market
  The National News

• Pandora’s Lab-Grown Diamonds
  The Independent

• The Disadvantages of Lab-Grown Diamonds for Gen Z and Millennials
  Fortune

• Insider Tips: Lab-Grown vs Natural Diamonds Guide
  Tatler Asia

Second List: