On 11 June 2021, the UK Financial Conduct Authority published a new webpage giving information to borrowers who have LIBOR linked mortgages.
The webpage says:
– LIBOR is used to calculate “some interest rates” for mortgages and is coming to an end in 2021;
– if the mortgage is LIBOR linked, the lender “may need to amend its terms and conditions to change the way the interest rate is calculated”. If it does so, the lender will tell the customer (and may ask for consent to make the change);
– the new reference rate of interest could be the Bank of England base rate. But when replacing the reference rate, firms should treat their customers fairly; and
– there may be some cases where a change does not happen before the end of 2021. The FCA plans to consult on providing a temporary solution for certain products, which may include mortgages, that have not changed by that time (but such a solution will be “time-limited”).