I was interested to read last week that the Financial Ombudsman Service saw a 2% increase in mortgage-related complaints for the year to March, while complaints relating to lenders’ SVRs increased.
Once again lenders are ripping off borrowers as there is no justification for the huge SVRs many have in place.
While lenders have to make profits to survive, with the Bank of England base rate at 0.5% and LIBOR not much higher where’s the justification for having such high SVRs other than to boost bonuses and pay huge salaries?
I must be missing something because when I ask any lenders to explain their SVR they can’t.
Some say the high rates are to help their savers but clearly this is not the case.
The regulator should act strongly against these institutions rather than attacking the smaller businesses it seems to see as an easier target.
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