After a busy week in the world of finance, we’re here to get you up-to-speed with the all the latest in financial news!
The 100% mortgage is back!
The Aldermore bank is now offering homebuyers the ability to borrow 100% of the cost of their home and is providing the first home loan available to buyers without a deposit since the credit crunch. Named “The Family Guarantee Mortgage” because borrowers must have a relative willing to guarantee any borrowing above 75%, the deal also includes an interest rate of 6.48%. Many will view this as good news for first time home buyers, but others will be hesitant to return to the “easy credit” ways of the past.
Airline surcharges anger Which?
Which? has called on the government to ban debit card surcharges for booking plane tickets after revealing that consumers spend £18million on the charges in two months. The consumer organisation made a complaint to the Office of Fair Trading (OFT) in March, who then decided that charges for paying by debit card should be banned and said that a simple amendment to existing Payment Services Regulations by the Treasury would achieve this. However, the governmet has still not taken action on the issue.
Quarter of parents in debt over childcare
It was revealed that parents in the UK spend more money on childcare than anywhere else in the world. Parents spend nearly a third of their salary on childcare costs, resulting in 25% of UK families saying child care costs have forced them into debt. The charity Save the Children, who carried out the research, have said that no family should be priced out of work because of childcare costs. They have called on the chancellor, George Osborne, to boost support for struggling families.
George Osborne admits that economic recovery will be choppy (as if we didn’t know that already):
In a speech at Lloyd’s of London, the Chancellor warned that recovery would be challenging and expectations would have to be lowered. Despite this, he maintains that the government will be sticking to their tough economic strategy, with quick and hard cuts.
Could we see the end of the 50p tax rate?
Leading economists have called on the Chancellor to demolish the 50p top rate of tax. Instead, they have asked Mr Osborne introduce an “internationally competitive tax regime” to stimulate the economy. It is hard to predict if Britain will gain more tax revenue by lowering the 50p rate. The government has replied by saying that the 50p tax measure is temporary and that they are conducting analysis into the amount it currently raises.
Which news stories have affected you the most this week? Please share your comments below.