Over 200,000 left in limbo over Amigo loan compensation
More than 200,000 customers are still unsure how much compensation they will get after being mis-sold loans by Amigo. Regulators slammed the firm for failing to properly check if borrowers could afford sky-high loans charging up to 49.9% interest.
Amigo tried to raise £15 million to cover compensation costs but has now decided to go into liquidation. The company will use its remaining assets to pay back customers what it can.
Bank of England hikes rates to 14-year high amid inflation fears
The Bank of England’s governor Andrew Bailey has pushed interest rates up to 4.25%, the highest level in 14 years. The unexpected jump is a reaction to stubbornly high inflation running at 10.4%, more than five times the Bank’s 2% target.
Despite recent global financial turmoil, the UK economy is holding up better than expected with no immediate threat of recession. Bailey remains cautiously optimistic but warns growth will be sluggish.
What the hike means for Brits
- Mortgage bills: Homeowners will face higher costs as borrowing rates rise.
- Savers: Some could see better returns on savings accounts.
- Inflation: Still stubbornly high, putting pressure on household budgets.
