Front bench MP Chris Leslie, shadow chief secretary to the Treasury, (pictured) said he plans to raise the issue with FCA boss Martin Wheatley next month, according to the FT.
With inflation accelerating, the Bank of England could raise rates well before the 2016 date originally implied by Governor Mark Carney’s forward guidance policy, he said. Yet many mortgage borrowers were taking on debts on the assumption that the current 0.5 per cent rate will persist, he argued.
The MP said mortgage lenders should be compelled to contact customers once a year to show the difference any rate change would have on monthly payments.
The FCA already expects lenders to offer an annual statement detailing outstanding term, loan type, amount still owed and interest rate.
“You need a requirement on all lenders to send a note every year to remind [customers] how they will be affected if rates normalise,” he said.
