Pink Home Loans has urged more lenders to launch mortgage products linked to the London Interbank Offered Rates (LIBOR).
"Standard variable rates have always favoured the lenders as it is their decision when and how they set it against Bank base rate (BBR)," he explains.
"BBR products on the other hand have given the borrower the upper hand, especially in the current market, in which there has been such disengagement between BBR and LIBOR.
"Linking products to three month LIBOR seems to be the way forward. The only issue appears to be realignment every three months, however this can be overcome by having either an annual change of payments or linking to a flexible mortgage," he concludes.IFAonline
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