Buy Now Pay Later and Mortgage Prisoners

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 24 June 2023

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Chief Executive of the Association of British Credit Unions has told Money Box his members are seeing more people applying for borrowing who already have multiple buy now, pay later loans. We'll hear from a young woman who got into debt that way and get a response from the industry.

Mortgage costs will go up again this week. That's going to put the squeeze on many households but it's especially bad news for the tens of thousands of people who are trapped paying unaffordable mortgages. We'll speak to Martin Lewis, who's campaigning for change, and get a response from the Treasury.

The Financial Conduct Authority is concerned that younger investors are using social media platforms for investing advice - without fully understanding the risks and how much money they might lose. We'll speak to their Director of Consumer Investments, hear from some young people and from the platforms themselves.

Presenter: Felicity Hannah Reporter: Dan Whitworth Researchers: Sandra Hardial and Jo Krasner Editor: Jess Quayle

(First broadcast 12pm, Saturday 27th May 2023)

Transcript

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0:00.0	On a winter's night in 1974, a crime took place that would obsess the nation.
0:07.0	It was an extraordinary news story.
0:09.0	The story of an aristocrat, Lord Lucan, who's said to have killed the family Nanny,
0:14.0	mistaking her for his wife, then somehow just disappeared.
0:18.0	One of the great mysteries in English criminal history. We're still looking for
0:21.7	Lucan. It's honestly one of the most powerful stories of my lifetime. I'm Alex Fontunzelman. This is
0:27.8	the Lucan Obsession. Listen on BBC Sounds. BBC Sounds, music, radio, podcasts. Hello, welcome to this Moneybox podcast.
0:38.3	Rising interest rates are putting the squeeze on mortgage payers, but what does it mean for the mortgage prisoners who can't even switch?
0:45.3	Well, Martin Lewis doesn't hold back.
0:48.3	With interest rates going up, it is becoming absolutely untenable and what was already a financial crisis for these people
0:55.1	is becoming a financial cataclysm.
0:57.3	Then there's been even more movement in the mortgage market
0:59.9	with rates on the rise.
1:01.4	And the financial regulator says it's worried
1:04.0	about the investment advice young people
1:06.1	are getting on social media.
1:08.0	So would you plan your finances through TikTok?
1:10.3	But first, the chief executive
1:12.3	of the Association of British Credit Unions has told Moneybox, his members are seeing more people
1:17.8	applying for borrowing who already have multiple buy-now pay later loans. Dan Whitworth's been
1:23.2	investigating Dan. Well, I'm going to start by telling you a bit about Tabara. She's 19 years old,
1:29.2	has just moved out of her family home and is one year into a three-year degree in Manchester.
	...

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