loan news

A new report has shown that pensioners are using equity from their homes after suffering from debt problems.

Other pensioners were using the equity released from their homes to retire comfortably , whilst some are using the money to give to their families or make large purchases, according to the report by Age UK.

A Bank of England report has said that homebuyers could face a new mortgage squeeze, leading to a shortage in new home loans, in the next three months.

Further tightening of wholesale funding could see a decrease once again in the availability of mortgages, despite a recent rise following the end of the recession.

The prediction from the Bank of England Credit Conditions survey comes just after news that the rate at which homeowners and businesses are defaulting on their loans has “unexpectedly” fallen.

The Bank of England’s Financial Stability Report has revealed that thousands of families are becoming insolvent after years of credit card spending in the past decade.

The Bank of England report highlighted the fact that lenders are writing off a record amount of credit card debt as thousands of people head towards insolvency and families are at further risk as lenders have responded by pushing up interest rates.

Pop star Cheryl Cole has come under fire from anti-debt campaigners who fear that her comments about taking out an unsecured loan may influence young adults to turn to doorstep loans or loan sharks.

The 26-year-old singer said in a recent interview that she once took out a short-term loan from a doorstep loan shark to buy trendy clothes. Cheryl said that she borrowed the cash when she was a teenager.

High cost credit options like payday loans do not need a cap on their interest fees according to an investigation by the Office of Fair Trading (OFT).

The investigation into the sector, which lent around £7.5billion in 2008, was launched after it was revealed that companies offering high interest credit options like payday loans, doorstep lending and rent-to-buy deals were charging up to 2000% on loans and targeting the poorest families.