Old and new mortgage customers should be offered the same deals, according to the Repossessions Advice Centre.
David Warnes, director of the organisation, remarked that people who regularly make their mortgage repayments and are looking for a cheaper deal should be given the same treatment as new customers.
Existing mortgage holders could be offered the chance to swap from an expensive standard variable rate deal to a cheaper two-year fixed-rate product after six months, he said, adding that this is obviously dependent on their credit history.
“I’d like to see them offer the same deal that a new customer would get walking in the front door,” he explained.
Paul Holmes, operations director at Firstrung, has claimed that the shrinking availability of mortgages could cause a reduction in house prices.
He predicted that over the next two years, the price of a property could go down by 20 per cent.
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