header-logo header-logo

30 October 2008 / Paul Beevers
Issue: 7343 / Categories: Opinion
printer mail-detail

After the party

How does the law help borrowers locked into uncompetitive deals? Paul Beevers reports

When a fixed rate mortgage ends, the interest rate usually defaults to the lender’s standard variable rate, which may or may not be higher than the average market rate. For some borrowers their lender’s standard rate may come as nasty shock, especially if they enjoyed a low introductory rate. Standard variable mortgage rates have not been particularly competitive in the past, and borrowers have relied on their ability to find a new deal with another lender to avoid paying over the odds for their loan once their fixed rate ended. Some borrowers will now find that they cannot refinance and lenders may take advantage of this to increase their margins on “captive” loans. Is there anything a borrower can do?

It may come as a surprise to learn that the courts have already been asked to decide the arguments that arise when borrowers say that they are being treated unfairly, and that the facts giving rise to the Paragon cases discussed below are

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Haynes Boone—Louise Woods

Haynes Boone—Louise Woods

Haynes Boone expands global capabilities with addition of Louise Woods as chair of international disputes

DWF—John Gilfedder

DWF—John Gilfedder

DWF strengthens Global Risks practice with strategic hire of aviation partner in London

Shakespeare Martineau—10 newly qualified solicitors

Shakespeare Martineau—10 newly qualified solicitors

Shakespeare Martineau appoints newly qualified solicitors

NEWS
The Thirlwall Inquiry has exposed a ‘complete failure’ to protect babies at the Countess of Chester Hospital, but its recommendations must now be put into practice
More than 500 former rugby players can pursue brain injury claims despite serious failures to disclose documents ordered by the High Court
When does a solicitor’s retainer become a contentious business agreement? The Court of Appeal’s decision in Broadfield Law UK LLP v Barnes shows that listing hourly rates alone will not do, leaving firms and clients uncertain about their rights over bills
Developers in areas with poorly performing councils can apply directly to the Planning Inspectorate for permission under section 62A of the Town and Country Planning Act 1990
A divorced woman has secured funding to participate in her former husband’s inquest after the Legal Aid Agency reconsidered repeated refusals
back-to-top-scroll