MSE News: Chancellor writes to lenders after 'mortgage prisoner' meeting with Martin
MSE_Luke
MSE Staff 295 Posts
George Osborne has written to lenders following a meeting with Martin Lewis about the plight of 'mortgage prisoners'...
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'Chancellor writes to lenders after 'mortgage prisoner' meeting with Martin Lewis – but more must be done'
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'Chancellor writes to lenders after 'mortgage prisoner' meeting with Martin Lewis – but more must be done'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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The lender who is already bearing the risk re a current borrower who wouldn't meet current affordability guidelines should be able (not forced) to offer other mortgage products on their books without revisiting affordability.
It would be foolish in the extreme to force other lenders to take on the risk of these "sub-prime" borrowers.
Then lenders would fall foul of a duty of care to borrowers if such terms were imposed, and the borrower subsequently defaulted.
Agree. I think you'll find that many trapped prisoners will jump at the chance to get back on track. I just wish it had gone further though and stipulated a date for compliance.
:mad:
Save our Savers
I've done this a few times with coop, simple phone call, pick your new product and that's it. Surly, someone on a higher variable rate can work out that a fix maybe cheaper.
The problem is, not all lenders do this
Yes, they know that, thats why they are switching, doh ! But they arent allowed to switch !
Talk about missing the point. There's no bailing out going on, and its got nothing to do with being reckless, and everything to do with illogical bureaucracy.
Are you suggesting people who have IO mortgages lie, are reckless and stupid borrowers? And those who do not have an IO mortgage don't lie, aren't reckless or stupid borrowers? IO mortgage lenders have done a good PR job in shifting the responsibility for their lending to the customers they lent to.
You may want to consider the reason many of us have IO mortgages instead of repayment mortgages is because they were the only ones we could get because we were self employed.
We aren't asking for more money - we're asking to be put on a cheaper deal like non IO mortgage customers are being offered so we can pay the mortgage off.