White halo effect on every screen on iPhone - Any ideas?

I have recently begun to have problems with my 18 month old iPhone 5 freezing in shutdown. I have had to reset it several times. After checking all settings and deleting unused apps etc. I seemed to have resolved the problem and it has been fine for about three weeks. However, today whilst the phone was recharging it began an intermittent beeping - this stopped when I disconnected it from the charger. I then updated it to the most recent iOS 7. This evening it became very overheated (hasn't done this before) and now it is displaying a white halo effect on every screen.
The phone has not been dropped or ever immersed in water. I only ever use the original lightning cable and charger.
I have 6 months to go of a 2 year contract.
Has anyone else had this problem? Is there hope or is my phone in its death throes??
I would greatly appreciate any help or advice. Thank you.

The Basic Troubleshooting Steps are:
Restart... Reset... Restore from Backup...  Restore as New...
Restart / Reset  >  http://support.apple.com/kb/ht1430
Backing up, Updating and Restoring >  http://support.apple.com/kb/HT1414
If you try all these Steps and you still have issues... Then a Visit to an Apple Store or AASP (Authorized Apple Service Provider) is the Next Step... Be sure to make an appointment first...

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