Lib Dems warn lenders over 255% increase in remortgaging

Responding to a survey from Datamonitor showing the remortgage market to have grown by 255% since 2000, the Lib Dems have called on lenders to act responsibly.

Malcolm Bruce MP, Liberal Democrat shadow secretary of state for trade and industry, says: “If interest rates rise further, borrowing against house valuations that may not be sustainable will result in catastrophe for thousands.

“With lenders increasing the income multiples that form the basis for lending decisions there is no sign of financial institutions acting with responsibility.

“Making the most of low interest rates is one thing. But borrowing to the edge of your means, seeing interest rates rise and losing your home is hardly making the most of your assets.”