Although many had hoped that July would bring an end to the suffering felt by flexible mortgage holders, it does not appear as though the end is in sight at this time. Rates for flexible mortgages continue to go up and thousands of homeowners may have little choice but to default on their home loan. Some experts are accusing banks of unfair practices with flexible mortgages, both current and new. It is now hard for anyone to get a new flexible mortgage due to a lack of overall funds and new bank practices.
“There doesn’t appear to be any let up in the misery for borrowers. Lenders need to start playing the game fairly and pass on the cut in swap rates as quickly as they pass on the increase,” said Darren Cook, of Moneyfacts.
“Neither the cost nor the availability of wholesale funds has improved for lenders since the Bank of England launched its special liquidity scheme, helpful though that scheme is,” said CML director general Michael Coogan.
“This means that cost and availability to customers has not improved either. And this in turn means that consumers are now beginning to give up and demand is falling, with confidence in the housing market falling with it.”
Related reading: Flexible Mortgages
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