Hope this is in the right forum. Please move if not.
It seems recently that there has been a disproportionate amount of complaints from various sources ( and in my opinion mainly justified) regarding banks and their SVR for mortgages.
There does not appear to be any control over increases. Although I do agree that the banks have to make a profit on their mortgage book.
Would it be a good idea for the Financial Regulator to say to the banks: "Fron now on all new and existing mortgage rates must be linked to the ECB rate."
There could be a spread set which gives the bank a reasonable margin (example between 2% and 4% above ECB ).
This would give borrowers more security knowing the banks cannot raise rates at a whim, and would keep a certain amount of competion between the banks offering mortgages.
The figures I have given are purely examples to illustrate the point.
It seems recently that there has been a disproportionate amount of complaints from various sources ( and in my opinion mainly justified) regarding banks and their SVR for mortgages.
There does not appear to be any control over increases. Although I do agree that the banks have to make a profit on their mortgage book.
Would it be a good idea for the Financial Regulator to say to the banks: "Fron now on all new and existing mortgage rates must be linked to the ECB rate."
There could be a spread set which gives the bank a reasonable margin (example between 2% and 4% above ECB ).
This would give borrowers more security knowing the banks cannot raise rates at a whim, and would keep a certain amount of competion between the banks offering mortgages.
The figures I have given are purely examples to illustrate the point.