'Bank of Bournemouth' pilot delayed

Related Stories

A council scheme for Dorset residents to apply for small business loans and mortgages has been delayed.

The pilot scheme, unofficially dubbed the "bank of Bournemouth" has been stalled by "complex legal frameworks", the borough council said.

Small business loans of up to £10,000 were supposed to be available from November last year and mortgages of up to £150,000 early in 2014.

The council said it hoped its pilot would start within six months.

Bournemouth Borough Council's cabinet approved the pilot community finance company to help out local residents and businesses using £15m of unallocated capital reserves,

'New and unusual'

But setting up a loans company as well as a mortgage company has taken longer than expected.

Council leader John Beesley said its Consumer Credit Licence was granted in November, but that compliance regulations for the licence were changing in April.

"We have decided to wait until the new regulations come into force from 1 April," he said.

"We shall therefore only need to undertake this work once."

He added that preparations for the mortgage scheme were continuing.

It is estimated the scheme, once up and running, will give the council an £8m return over 10 years.

The pilot was supposed to run until March 2015, but the council cannot confirm whether this deadline will now be extended.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Dorset



7 °C 3 °C


  • Mukesh SinghNo remorse

    Delhi bus rapist says victim shouldn't have fought back

  • Aimen DeanI spied

    The founder member of al-Qaeda who worked for MI6

  • Before and after shotsPerfect body

    Just how reliable are 'before and after' photos?

  • Lotus 97T driven by Elio de AngelisBeen and gone

    A champion F1 designer and other notable losses

  • A poster of Boris Nemtsov at a rally in St Petersburg, Russia, 1 MarchWho killed Nemtsov?

    Theories abound over murder that shocked Moscow

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.