Some UK mortgage lenders continue to punish mortgage borrowers unfairly by pushing them on to higher Standard Variable Rates or making borrowers repay mortgages in-full for minor breaches, said the FSA.
The Financial Services Authority (FSA) has highlighted a raft of lender tactics, which it said is detrimental to consumers, including poor treatment of borrowers in arrears. Problems highlighted include lenders moving consumers from their discounted initial rate deal to the firms' Standard Variable Rate (SVR), for minor breaches, possibly leading to payment shock. Some lenders have also demanded immediate full repayment of mortgage loans after a minor change in consumer circumstances, said the FSA. Several lenders including Chesham Building Society and Blemain Finance in 2010, Nati...
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