The financial regulator will have to exercise strong supervision over banks and building societies to ensure that 'mortgage prisoners' are offered the same choice of deals available to other customers, the Financial Services Consumer Panel has said.
The financial regulator will have to exercise strong supervision over banks and building societies to ensure that 'mortgage prisoners' are offered the same choice of deals available to other customers, the Financial Services Consumer Panel has said.
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SIMON BAIN
The Financial Services Authority has watered down original proposals in its Mortgage Market Review (MMR) which would have allowed lenders to lock in existing borrowers at high standard variable rates when they needed to remortgage. Lenders will be allowed to "switch off" new, more stringent requirements on affordability and interest-only borrowing for customers who want a new product without increasing borrowings. "Lenders will also be able to use these arrangements to take on the customers of other lenders," the FSA said.
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