Financial Regulator in new warning to mortgage lenders
Mortgage lenders are being warned to disclose the full implications of switching from a tracker rate to homeowners.
Financial Regulator Matthew Elderfield has written to financial institutions setting out new measures to ensure consumers understand how a move to an alternative mortgage would affect them in the future.
The Central Bank and Financial Regulator have confirmed a number of concerns were uncovered during an examination of switching practices.
It disclosed it was not always clear that if a customer moved from a tracker rate mortgage to a different interest rate - fixed, variable or other - that their agreed tracker rate or an alternative one might not be available again in the future.
Elderfield has written to all financial institutions telling them to fully disclose the impact of any switch, with immediate effect.
