My pick of last week’s news is Coping with housing costs during the coronavirus crisis which has figures to back up what advice agencies have been saying is happening.
Tweet of the week
Coronavirus: inside the food banks feeding the hungry during lockdown | The Sunday Times Magazine | The Sunday Times @BrixtonFoodbank @VauxhallFB @foodbankNorwood @WaterlooFB awesome volunteers and leadership! https://t.co/smEJVfzOVt
— Alison Inglis-Jones (@Ijoneswilliams) May 31, 2020
- FCA announces support for customers who are struggling to pay their mortgage due to coronavirus FCA: proposes to extend payment holiday for a further 3 months but warns that Payment holidays and partial payment holidays offered under this guidance should not have a negative impact on credit files. However, consumers should remember that credit files aren’t the only source of information which lenders can use to assess creditworthiness.
- Coronavirus: New mortgage holiday should affect credit record, says Nationwide boss BBC: This should not be a “big black mark”, he said, but “a middle way” that would alert lenders with a temporary mark, but not restrict people’s ability to remortgage.
- Home loans holiday ‘will put up debt’ Times (paywall): As many as 70 per cent of homeowners who have taken mortgage holidays do not need to extend their payment breaks, Britain’s banking industry claimed as it raised concerns about plans to prolong the scheme.
- UK banks granted 1.5m payment holidays on credit cards and loans Guardian: Relatively low number of breaks so far is now rapidly rising, says bank lobby group.
- Coping with housing costs during the coronavirus crisis Resolution Foundation: While the social security system potentially offers a (more generous) backstop for renters, eligibility rules and caps leave some renters without adequate support. Our survey shows that one-third of new benefit claimants are in housing cost arrears.
- Tenants could lose access to duty solicitor in eviction cases Law Gazette: Vulnerable tenants could be evicted without help from a duty solicitor under county court plans to resume housing possession cases next month.
- Nationwide building society expects house prices to fall 13.8 per cent this year as people delay home moves Mail: ‘The home mover and the first-time buyer segments of the mortgage market are likely to be suppressed. We’ve taken some forecasts that are conservative compared to some.’
Why a rethink of council tax collection is needed to deal with coronavirus arrears Money Advice Trust: we are calling on the Government to introduce a statutory ‘pre-action protocol’, which would require councils to take certain steps before seeking a liability order for bailiff enforcement action – including setting up an affordable repayment plan.
Is this the beginning of a credit card squeeze? Number of 0% and balance transfer deals collapse in the wake of coronavirus Mail: There are now just 55 zero per cent purchase credit cards and 56 balance transfer cards currently available…down from 61 and 66 at the start of April, both of which were already record lows.
High cost credit:
- Amigo Loans founder threatens to block takeover offer FT (paywall) Benamor sharply critical of approach from unidentified bidder.
- Pensioner horror as Basset & Gold emerges as backer behind payday lender Uncle Buck Standard Pensioners who invested in collapsed bond investor Basset & Gold today told of their horror at learning the company was investing their money in offering payday loans.
Benefits & other news
UK’s most vulnerable people at risk of losing 60% of their income Guadian: Citizens Advice warns of lack of safety net for many of the 2.5 million ordered to shield at home.
- Credit card gambling ban loophole Moneybox (piece starts at 9mins 20 seconds): Gamblers can deposit money charged to their phone bill which they can then pay by credit card.
- Gamblers using bank apps to freeze accounts as they battle lockdown temptation Mirror.
No recourse to public funds:
- Coronavirus: Mother calls on Boris Johnson to help migrants BBC: The case behind the question to Boris Johnson on Wednesday when he showed he had no idea about the nor recourse to public funds rules.
- If Boris Johnson is baffled by Britain’s cruel migration laws he should change them Guardian.
Coronavirus: Lockdown increasing the gender wage gap as more women lose their jobs than men Sky news: Women are also more likely to take on the additional child care responsibilities and housework.