MSE News: MPs reject interest rate cap for mortgage prisoners - but the fight won't stop here

MSE_Petar

The House of Commons has struck down a proposed amendment to the Financial Services Bill, which would have seen interest rates capped for certain mortgage prisoners. But the Government has announced it will look for other solutions and MoneySavingExpert.com won't give up the fight.

Read the full story:
'MPs reject interest rate cap for mortgage prisoners'

Click reply below to discuss. If you haven’t already, join the forum to reply.

SpiderLegs

Good old Martin.
quite happy to complain about govt intervention regarding SDLT cut and 95% mortgages distorting the wider market.
quite happy to ask the govt to intervene by capping svr to a ridiculous 2% + BR thereby distorting the wider market.

boatman

Anyone would think the paymasters of the conservative party are the Banks... 

They have had 10 years to do something, and they still drag it out. Reminds me of infected blood and Post office Horizon... 

Let them eat cake..

MattMattMattUK

I found the most interesting part of the reason for rejection the paragraphs below, it paints a rather different picture to the one that the "mortgage prisoners" are trying to paint. 

Addressing parliament, John Glen, the economic secretary to the Treasury, said analysis by the Financial Conduct Authority (FCA) showed that half of the 250,000 borrowers with inactive firms met the normal risk appetite of lenders, and could switch without government intervention.

“Of the remaining 125,000 who cannot switch, 70,000 are in arrears and therefore could not secure a new deal even if they were in the active market. Those borrowers need to work with their lender to agree an appropriate repayment plan,” he said.

“The remaining 55,000 who are with inactive lenders, and are up to date with their payments but who cannot switch, are paying on average only 0.4 percentage points more than similar borrowers on reversion rates with active lenders.”