Brendan Burgess
Founder
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This has been suggested on other threads.
The argument appears to be that those who can switch, should do so. If they don't, then they don't deserve protection.
It is further argued that, competition will eventually fix the problem. If we were to control mortgage rates, we could deter new entrants.
I am not sure where I stand on this.
I have less sympathy for those who could switch, but can't be bothered. But I have some sympathy for them as I don't like seeing lenders exploiting the long and complicated switching process.
But even switchers need protection. The best a rate tart can get is 3.1% which is still around 1.5% ahead of what they would be paying elsewhere in Europe.
Let's assume that is agreed for the purpose of this argument, that we should restrict protection to the most vulnerable, how would you design a system to do that?
The argument appears to be that those who can switch, should do so. If they don't, then they don't deserve protection.
It is further argued that, competition will eventually fix the problem. If we were to control mortgage rates, we could deter new entrants.
I am not sure where I stand on this.
I have less sympathy for those who could switch, but can't be bothered. But I have some sympathy for them as I don't like seeing lenders exploiting the long and complicated switching process.
But even switchers need protection. The best a rate tart can get is 3.1% which is still around 1.5% ahead of what they would be paying elsewhere in Europe.
Let's assume that is agreed for the purpose of this argument, that we should restrict protection to the most vulnerable, how would you design a system to do that?
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