FCA forces lenders to give ‘breathing space’ to borrowers

In its policy statement published today (October 23) the regulator said it wanted to remove a potential regulatory barrier that might lead to borrowers experiencing financial harm if it unnecessarily restricts them from being able to access rates offered by another lender in the same group.

According to the FCA, the rule change should help some closed book customers, who are within the risk appetite of the relevant lender, switch to a new mortgage that may be more affordable.

The regulator added that it hoped some firms may choose to make use of the rule change where it was within their risk appetite to do so, although it noted that lending was a “commercial decision”.

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