Pink Home Loans has urged more lenders to launch mortgage products linked to the London Interbank Offered Rates (LIBOR).
The firm noted that previous attempts to launch such deals had proved unpopular, mainly due to the fact that few borrowers understood them. However, David Copland, managing director at Pink, argues that thanks to the credit crunch, the general public now has a much better understanding of 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 disengagemen...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes