Mortgage scheme launched for 5% deposits
A new government scheme is allowing high street lenders to offer mortgages with a deposit as little as just 5%.
This is to allow more first-time buyers to secure a home and get onto the property ladder, whilst also helping people cope with the increasing house prices over the last year.
“The government is offering a partial guarantee, generally of 15%, to compensate lenders if the borrower defaults on repayments.
The guarantee is designed to give lenders the confidence to offer 95% loan-to-value mortgages – many of which were withdrawn during the Covid crisis.”
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Bank of England to consider digital money plan
The Bank of England and the Treasury have announced they want to explore the possibility of a central bank digital currency.
“No decision has been taken on whether to have such a currency in the UK.
However, the government and the Bank want to “engage widely with stakeholders” on the benefits and practicalities of doing so.”
Reports suggest that this is a great opportunity since the use of cash in financial transactions is on the decline. The global pandemic has played a big part in the increase of card transactions.
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London Capital and Finance: Treasury expects £120m compensation bill
Reports suggest that the government is expecting to pay £120m to bondholders of the failed investment scheme.
With the collapse of the LCF in Jan 2019, many investors were left in a loss.
The government compensation will be paid to around 8,800 people who have not yet qualified for other pay-outs.
The qualifying people will receive 80% of the money lost, capped at £68,000.
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Government demands answers from banks on business account delays
With the pandemic impacting many businesses, the banks have been a help in trying to keep them afloat.
Many people have started up small / medium businesses over the lockdown, but many SME businesses are struggling to open new business current accounts.
The Treasury has since written to six high street banks to find out why they are making it so difficult for these businesses.
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