MSE News: House of Lords votes in favour of interest rate cap for mortgage prisoners

MSE_Petar

The House of Lords has voted in favour of an amendment to the Financial Services Bill, which could see interest rates capped for certain mortgage prisoners, as well as ensuring some have access to fixed interest rate deals.

Read the full story:
'House of Lords votes in favour of interest rate cap for mortgage prisoners'

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missile

Chances of parliament agreeing to this are slip

SpiderLegs

‘The amendment to the Bill would bring in a cap on the standard variable rate (SVR) of interest for mortgage prisoners in 'closed books' - ie, those borrowing from a firm which no longer lends to new customers. The proposed cap is no more than 2% above the Bank of England base rate (currently 0.1%).’

You know, I’m not sure that this amendment is going to fly tbh....

microcristallina

Saw a article on the BBC saying the Treasury has been lobbying MPs not to support the Lords amendment as an interest rate cap would have serious market implications and be unfair to other borrowers.