LIBOR-linked residential and buy-to-let mortgages in the UK account for about 1-2% of outstanding mortgages, an estimated 200,000 loans. Lenders and administrators of mortgages extending beyond 2021 need to carefully consider their strategy to ensure that changes are clearly explained and the appropriate consents obtained from customers. If this was the case, and no regulatory equivalence agreed, LIBOR could be treated as a third-country benchmark under the EU Benchmarks Regulation. The government has also announced a review into how mortgage lenders should be regulated after it emerged they were charging borrowers interest rates above market rates.
LIBOR-linked residential and buy-to-let mortgages in the UK account for about 1-2% of outstanding mortgages, an estimated 200,000 loans. Lenders and administrators of mortgages extending beyond 2021 need to carefully consider their strategy to ensure that changes are clearly explained and the appropriate consents obtained from customers. The government has also announced a review into how mortgage lenders should be regulated after it emerged they were charging borrowers interest rates above market rates.