Major change to card payments affecting all shoppers at tills
A major change to how shoppers pay at tills could be brought in. The financial regulator has confirmed it could 'remove the £100 contactless limit' for card payments.
It would give shoppers 'greater flexibility' when they are paying for their goods. The contactless card payment limit has been raised several times.
It was increased to £20 in 2012, to £30 in 2015 and then to £100 in October 2021. There is usually no limit to the number of contactless transactions you can make in a day.
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But you could be asked to enter your PIN number if you make a lot of purchases, Mirror reports. The Financial Conduct Authority (FCA) confirmed it would look into contactless payments.
It came after the Government asked what steps the regulator could take to support economic growth. The FCA also confirmed it could soon ease mortgage rules to help more first-time buyers get on the property ladder.
Under current rules, lenders are limited in how many large mortgages they can approve. The cap means that no more than 15 per cent of a lender's mortgage book can compromise loans for properties costing more than 4.5-times the buyer’s annual salary.
But this could soon change so people can borrow larger sums. This could be useful for people on lower salaries, as long as they will be able to afford their repayments.
There could also be a change to affordability rules which test whether borrowers can still keep up with repayments if interest rates unexpectedly rise. Rental payments may soon be included as part of your borrowing, rather than focusing just on your income, according to The Times.
Rightmove mortgage expert Matt Smith said: "It is really encouraging that the market regulators are now considering what a review of mortgage affordability could look like. Regulatory change is what we've been calling for, as that is what is needed to truly impact home-mover affordability, particularly for first-time buyers.
"We've seen some innovative products and schemes announced by lenders to try and do their bit to support home-buyers, but they need support from both the government and regulators to really drive more options for people."
Richard Donnell, executive director of research at Zoopla, warned: "The big question is whether current rules go too far but there is a risk for consumers and the government in how far this might go. Finding the balance not easy and is compounded by the huge north-south divide in affordability."