FCA contacts banks following huge withdrawal of mortgage deals
The Financial Conduct Authority has contacted UK lenders following the withdrawal of more than 1,600 mortgage products over concerns that millions of borrowers face a sharp rise in interest payments when their existing deals expire.
The watchdog’s supervisors have held talks with most of the big providers over the past week after most high-street lenders pulled fixed-rate products as turmoil hit the markets in the wake of chancellor Kwasi Kwarteng’s controversial tax-cutting, according to people close to the situation.
More than 2mn borrowers with fixed-term products will need to remortgage between now and the end of 2024, according to Bank of England data.
In contrast, Virgin Money is planning to come back to the market Friday with higher rate products after withdrawing a week ago, according to a person close the situation.
This story originally appeared on: Financial Times - Author:James Pickford
