MPs urge FCA to cap standard variable rates

Industry News | 12/06/20

The All-Party Parliamentary Group on Mortgage Prisoners has written to the CMA and the FCA to call for an immediate investigation into “price gouging” by unregulated funds and inactive lenders. The APPG is calling for a market-wide margin cap of 2% above the Bank of England base rate on all standard variable rates to provide “immediate and effective relief” to mortgage prisners. Its research found that a customer with a £130,000 repayment mortgage with Heliodor on the SVR of 4.39% will be paying £11,846 a year, compared to £9,967 a year if they could access a good value fixed rate mortgage.

Source: financial reporter