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UK: Regulator tells banks to release mortgage ‘prisoners’

By  |  November 6, 2018

According to a report from Reuters, Britain’s financial regulator has told banks to rescue thousands of borrowers “trapped” in poor value home loans, saying the authorities could intervene if need be.

Mortgage “prisoners” took out a loan before tougher rules introduced since the financial crisis left them unable to meet stricter affordability tests for remortgaging to a cheaper deal as interest rates rise.

Banks came to a voluntary arrangement earlier this year to allow such customers to switch if they meet basic conditions.

“We believe this is an important step forward, but the devil is in the detail,” said Christopher Woolard, executive director for competition at the Financial Conduct Authority.

“We are keen to see what impact this agreement has, and to see all lenders able to participate doing so,” he told a conference held by UK Finance, which represents Britain’s banks.

Full Content: Reuters
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