Nationwide withdraws 90% mortgages

Negative equity fears

Nationwide, one of the country’s biggest mortgage providers, has said it won’t lend* to new customers with less than a 15% deposit. It’s concerned about negative equity, which is when house prices dip making your mortgage balance bigger than the value of your property. The lender has said the outlook for the housing market is uncertain, and it’s factoring that uncertainty into its lending decisions.

Adviser comment: "Unfortunately this isn’t good news for first-time buyers, who tend to need a higher loan to value ratio than other homebuyers. However, the mortgage market is changing almost everyday at the moment, so keep saving and keep an eye out for more news and comment."

Companies make reparations

Major UK firms have apologised for the part they played in the slave trade, and have promised to pay reparations. Greene King’s founder was a slave owner and was given £500,000 (in today’s money) as compensation when slavery was abolished. Lloyds of London used to insure slave ships. Both companies will make payments to individuals and organisations that benefit the black community.

Triple lock under threat

Chancellor Rishi Sunak has warned that scrapping the state pension triple lock may be “unavoidable”. Under the triple lock, the state pension increases by 2.5%, wage growth, or inflation – whichever is highest. It’s an expensive policy, and one that may prove unaffordable next year when the UK is set to borrow £300 billion to cover the costs of coronavirus.

Adviser comment: "This reiterates the need not to rely on the state pension for your retirement income. Check your recommendations to see if you should be putting more aside towards your own retirement plans."

DPD hiring spree

DPD has announced plans to hire at least 6,000 new employees as it races to keep up with new demand. The recent boom in online shopping has kept the delivery firm very busy, and it expects the growth to continue even now that the high street is reopening.