Nationwide rejects BOMAD buyers

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BOMAD crackdown

Nationwide, one of the UK’s biggest mortgage providers, is turning away buyers relying on the “Bank of Mum and Dad”. Anyone wanting a mortgage for more than 90% of the property price must show they saved up at least three quarters of their deposit themselves.

Adviser comment: "This could been seen as quite harsh, as gifts from family are a massive source of deposits for lots of people. The lender is looking to restrict lending to borrowers it considers to be less likely to experience problems paying back their debt in the future."

Redundancy advice line swamped

Conciliation service Acas says calls to its redundancy advice phone line tripled in June and July, as bosses and employees alike prepare for life after furlough. The furlough scheme, which currently supports 9.6 million people, is being gradually withdrawn from this month, requiring employers to cover more of the wage bill themselves.

William Hill shutting shops

Betting outfit William Hill said it's closing 119 shops, after its profits plunged since March. With no sports fixtures to bet on, and no one visiting the high street, the gambling firm took a large hit. It says staff at the closed stores will be offered jobs elsewhere in the company.

FSCS extends protection

The Financial Services Compensation Scheme (FSCS) has announced up to 12 months protection* for people with temporary high balances of up to £1 million, such as after a house sale or inheritance. The FSCS protects savers against bank failures. The rule change comes after slowdowns in the banking system due to coronavirus caused concern that customers’ money could be tied up for longer.

Adviser comment: "This is a useful and common sense approach from the FSCS even though it is likely to only benefit a fairly small number of people."