A diving school which is profitable had its funding withdrawn for a holiday homes project midway through construction.
UK Taxpayers' money has been used to prop up high street banks so that they would keep lending to small businesses.
But some small firms are still finding it hard to get funding from banks.
Carol Hack from the Capernwray Dive Centre, in Lancashire, explained how her bank pulled her funding half way through a project to build new holiday homes.
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At least this small business could complete the project without bank funding. It's just a shame that she didn't name and shame the bank concerned.
In New York, she would have sued the bank claiming they broke agreements in the construction and financing of the holiday homes and damaged her business reputation.
The fact they were able to complete the project using their own finances and sold at asking price shows another case of the bankers not understanding the marketplace.
Congratulations Carol.
Friday, August 07, 2009
Saturday, February 07, 2009
Sale And Rent Back To Be Regulated
UK schemes widely advertised and promoted as a way of swapping a mortgage for an affordable tenancy are to be regulated by the Financial Services Authority.
Sale and rent back schemes have had some negative press - although not all are bad - so Government is proposing new regulation to give vulnerable homeowners better protection, even though business has been using such terms for many years.
Recently, the Office of Fair Trading (OFT) told 16 companies involved in the business to justify apparently misleading claims they had been making in their adverts.
While many of the firms involved in such schemes are not involved in any misleading tactics, many of the most vulnerable homeowners are not informed enough to make decisions.
Because of this sale and rent back to be regulated is the only answer.
Sale and rent back schemes have had some negative press - although not all are bad - so Government is proposing new regulation to give vulnerable homeowners better protection, even though business has been using such terms for many years.
Recently, the Office of Fair Trading (OFT) told 16 companies involved in the business to justify apparently misleading claims they had been making in their adverts.
While many of the firms involved in such schemes are not involved in any misleading tactics, many of the most vulnerable homeowners are not informed enough to make decisions.
Because of this sale and rent back to be regulated is the only answer.
Thursday, February 05, 2009
Tougher UK Mortgage Hurdles
According to financial information service Moneyfacts , the conditions attached to mortgages have become more severe in the past month. That means banks are continuing to rein in new mortgage borrowing despite lower interest rates and being bailed out by the Bank of England.
According to Moneyfacts, 64% of all mortgages now require a deposit of at least 25% of the value of the property. That's up from 60% just a month ago.
There are now just 10 deals on offer requiring no down payment at all, and from just two lenders. Moneyfacts stated that the number of deals on offer had been cut by 89% since the start of the credit crunch, and it seems that those remaining deals require tougher UK mortgage hurdles to be crossed before you see your mortgage.
According to Moneyfacts, 64% of all mortgages now require a deposit of at least 25% of the value of the property. That's up from 60% just a month ago.
There are now just 10 deals on offer requiring no down payment at all, and from just two lenders. Moneyfacts stated that the number of deals on offer had been cut by 89% since the start of the credit crunch, and it seems that those remaining deals require tougher UK mortgage hurdles to be crossed before you see your mortgage.
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