The Prudential Regulation Authority is introducing new rules to ensure depositors who may experience a decrease in the level of protection following the change to the FSCS deposit protection limit are given the opportunity to adjust to the new limit, without incurring any penalty or loss of interest. As announced on 3 July, the existing level of deposit protection of £85,000 will change to £75,000 after 31 December 2015.
A Lasting Power of Attorney (LPA) means that loved ones can make timely financial and welfare decisions on behalf of someone, rather than go through the court to apply for permission to manage their affairs.
The average salary of homebuyers seeking a mortgage fell to a near-four year low in June. The data suggests record low mortgage rates have improved access to the housing market for lower earners as lenders have become more comfortable working within new affordability rules. Twelve months ago, the average primary salary of mortgage applicants peaked at £41,106 (June 2014) following the introduction of MMR in April. In comparison, the typical primary income for a borrower in June 2015 was just £34,584: an annual fall of 16% and the lowest figure seen since August 2011.
The Financial Conduct Authority have published new rules which will allow consumers access to data on complaints made to financial services companies. Firms will be required to report all complaints to the FCA, which will publish the data and provide additional context to allow consumers to better compare firms. Currently, firms are only required to report complaints to the FCA that take longer than a day to resolve. The regulator is also preventing financial services firms charging their customers premium rates when they make telephone calls to ask for assistance or to complain.
All members of the Monetary Policy Committee voted to hold Bank Rate at 0.5% at the most recent meeting. However the MPC revealed that for a number of members, the balance of risks to medium-term inflation relative to the 2% target was becoming more skewed to the upside at the current level of Bank Rate. For these members, the uncertainty caused by recent developments in Greece was a very material factor in their decisions: absent that uncertainty, the decision between holding Bank Rate at its current level versus a small increase was becoming more finely balanced.