My pick of last week’s news is Boris Johnson wants 25-year fixed-rate mortgages (behind a paywall but if you register you can see a few free articles a month).
Tweet of the week
While there is a lot of controversy about the drop in furloughing support from 80% (the blue line) to 67% (the green line), the far bigger drop from a living standards perspective is for those not entitled to new support, and face far less support on Universal Credit (red line) pic.twitter.com/oYg83Ubqy6
— Resolution Foundation (@resfoundation) October 11, 2020
Victory in battle against ‘thuggish’ debt letters BBC: “The timing is crucial, with millions of people facing debt and distress due to the pandemic, the sooner we end these out-of-date laws which force lenders to send intimidating letters the better.”
- When mortgage payment breaks end, can you pay your mortgage? my article
- First-time buyers pay £140 more per month in mortgage repayments since beginning of the coronavirus crisis Mail: Bank of England data shows the average rate on a two-year fixed mortgage for someone with a 10 per cent deposit has risen from 1.97 per cent in February to 3.32 per cent last month – the highest level since June 2015.
- Long-term first-time buyer mortgages will need big government backing BBC: There is a risk that without serious planning reform such a measure would merely prop up house prices.
- Boris Johnson wants 25-year fixed-rate mortgages Economist (paywall): Brokers, who arrange 70% of mortgages, have an interest in selling clients new products every two or five years rather than one that would last for a quarter of a century.
New UK Finance chief David Postings led failed sub-prime lender Cattles during scandal Times (paywall): In 2012 the FSA fined and banned from the industry three former Cattles and Welcome directors over the scandal. Mr Postings was not among them.
The private parking ticket menace! Mail: ANPR cameras now create £2,000 in penalties for drivers every MINUTE – and the number installed is still surging.
Almost 3 million UK households face energy bill debt over winter months Yahoo: This is a rise of 22% in the number of households in debt to their supplier compared with this time last year — an extra 460,000 homes in the red.
Benefits & other news
Safe harbour? Resolution Foundation: Six key welfare policy decisions to navigate this winter.
Keep the £20 Universal Credit lifeline – lived experience shows us why JRF: “We call it Universal Credit but for many it would be most apt to call it universal deficit!”
Only half of England renters felt safe at home during lockdown Guardian: A long-term trend of low-income households renting from private landlords has meant an increasing number of people are in unfit homes that they can barely afford.
Five ‘fixes’ for the FCA’s vulnerability guidance Money Advice Trust: here are five key areas that we’ve called on the FCA to focus on, as it finalises this welcome document.
Council must re-house when tenant is given notice not wait for bailiffs – Local Government and Social Care Ombudsman Property 118: instead of helping the mother to find appropriate accommodation before she was evicted, the Council told her to remain at the property until the eviction date.