My pick of the week’s news – at last the draft Debt Respite Scheme Regulations have been published – better known as the Breathing Space.
Tweet of the week
Today’s advice. 1. Never use google or other search engines to find debt advice. 2. If you do, scroll past the top results that have Ad by them. They pay google to be there. They may be crooks, they may mis-sell you things, at best they are there to make money not to help you.
— Paul Lewis (@paullewismoney) July 18, 2020
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 gov.uk: draft regulations to go live in May 2020.
FCA confirms further support for motor finance and high-cost credit customers FCA: as expected, another 3 months of payment deferrals are available.
Nationwide offers 90% mortgages to first-time buyers BBC: 10% deposits are back for first-time buyers but no flats, 25 year max term, houses over 2 years old.
Coronavirus: Chances of getting a loan or mortgage are squeezed BBC: Mortgage and loan providers have told the Bank of England that the supply of these products will fall in the summer months owing to coronavirus pressures… One commentator said the credit squeeze was tighter than a decade ago.
Revealed: Borrowers who took loan repayment ‘holidays’ after being told it wouldn’t affect their credit score are now struggling to obtain mortgages Mail: Banks have rejected customers who – after the Covid-19 lockdown began – chose to take breaks from repaying home loans, credit cards and car finance loans. This is despite having been told by the Government there would be no repercussions.
Relief as majority of homeowners restart mortgage payments after months of financial turmoil Telegraph (paywall): Only one in five customers who asked for a break from their mortgage payments have told banks they are still unable to afford their loan.
Car dealers are open again, but should you buy a car right now? Car Expert blog: In uncertain times, it’s more important than ever that you don’t overcommit yourself just to have a shiny new car on the driveway.
Single mum in grip of serious gambling addiction took £340,000 from company in 10 months Wales Online She naively thought that she might be able to pay back the money.
Companies pushed ‘vulnerable’ customers deeper into debt, FCA says Belfast Telegraph: A father-and-son team whose promises to help out people who risked defaulting on their mortgage often pushed them further into debt have had around £5 million frozen by a court.
Benefits & other news
Length of universal credit interviews halved as UK benefit need soars Guardian: Government reintroduces sanctions suspended in lockdown, in move Labour says ‘beggars belief’.
Universal Credit and Crime IAZ Institute of Labour Economics: We find UC has caused around 45,000 burglaries.
The Government Doesn’t Know How Many People Are Breaking Test And Trace Self-Isolation Rules HuffPo: campaigners, and the head of the Test and Trace programme, have warned that financial pressures could make self-isolation incredibly difficult for some people.
Rapid response social research in a pandemic – opportunism or activism? Covid realities – a new blog: It’s going to be shit! We know it’s going to be shit! Why do we need more research telling us how shit it’s going to be?!”