Sam Richardson, Deputy Editor of Which? Money, said:
“Many people with mortgages will be deeply concerned by average five-year fixed-rate mortgage deals topping six per cent, so the regulator must make sure banks are fulfilling their responsibilities to help people who may be struggling to keep up with payments.
“The first thing these borrowers should do is talk to their lender to see what kind of support is available. Talking to them will not affect your credit rating and options include extending the term of the mortgage, setting up a payment holiday, only paying the interest on your deal, as well as locking in a deal up to six months in advance.
“The Financial Conduct Authority is right to haul banks in amid claims they are profiteering from hiking mortgage rates while not passing on higher interest rates to savers. Banks have not been doing well enough at passing on interest rate hikes to savers, so the regulator must hold them to high standards and take tough action against firms that continue to fall below the required standards of offering fair value products.”