Lenders' actions in respect of early redemption penalties has sparked reaction with intermediaries who believe applying increases retrospectively shows bad faith.
Geoff Griffiths, partner at Shire Financial Management LLP, comments: "While brokers understand the motive behind the changes to early redemption penalties it seems unacceptable to levy them against existing borrowers who took out their loans before these charges were raised. "If one takes a mortgage now, where the key facts illustration clearly shows these charges, then that seems fair enough. But to add them retrospectively seems utmost bad faith, even though the 'small print' may permit it. If a lender wishes to keep their existing borrowers they should make the available rates to th...
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