Liberal Democrat's house deposit plan fails to make an impact on the industry

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Nick Clegg’s Liberal Democrat party has unveiled new plans that will enable pension savers to fund a relative’s house deposit.

Nick Clegg has stated that the government is looking at ways to allow parents and grandparents to help struggling first-time buyers by using a lump sum from their fund as security for a mortgage. This new option would allow the saver to effectively provide a deposit for the property, with the money only called on if the borrower defaulted on repayments.

Chief ...

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Have we seen a change in consumer attitude towards reducing debt?

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Figures published by the British Bankers’ Association (BBA) has revealed that the volume of outstanding loan amounts has almost halved from its peak in 2008.

The data shows that unsecured borrowing from the banks contracted by 3.1% since 2008. The BBA has suggested that this is due to consumers acting, “conservatively,” by repaying loans and shopping around for the savings accounts with the highest interest rates.

The report has also shown that net mortgage lending grew by 0.6% in the year to ...

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Universal credit scheme is heading for disaster

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The governments former welfare reform minister Frank Field has described the proposed programme as, “’practically unachievable” and heading for disaster.

Iain Duncan Smith’s flagship welfare reform programme, under which most benefits will be rolled into one universal credit has come under fire by critics. It is suggested that universal credit is, “practically unachievable” and will, “rot the soul” of low-paid workers by encouraging dependency. MPs will prepare to vote on the reforms in the Commons this week. 

Frank Field has stated that ...

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Bank of England maintain the current rate of interest

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The Bank of England’s Monetary Policy Committee (MPC) has announced that it will keep interest rates at 0.5% and will currently hold off from any further stimulus measures.

This news comes just a day after the Organisation for Economic Co-operation and Development (OECD) has cut its forecast for the UK sharply. In addition to the UK the OECD has also cut its figures for the rest of the Eurozone which includes Germany. The European Central Bank in Frankfurt has also decided ...

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Hidden pension charges revealed

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A report by the Royal Society for Arts (RSA) has stated that when asked 21 out of a sample of 23 firms failed to disclose full investment costs.

The Association of British Insurers (ABI) has commented that it ensures that all its members reveal full costs as required by the Financial Services Authority (FSA).

Otto Thoresen of the ABI said, “All employees who have contract-based defined contribution pensions have their charges disclosed in their key facts information when they purchase a pension.”

“This ...

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Credit card borrowing falls

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The Bank of England has announced that in July credit card lending has shown the biggest decline since August 2006. Figures show lending fell by £147 million in July, whilst mortgage approvals showed a marginal recovery.

This figure has matched reports of the consumer’s reluctance to spend with retail figures for the same period weaker than expected. This was disappointing news for many as there was a general hope of a lift during the Olympics.

Credit card lending has historically shown erratic ...

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