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OFT issues lock-in guidelines


The OFT has issued a set of guidelines on the rates banks and building societies can charge savers and borrowers “locked in” to their mortgages.


Consumers can face penalties for paying back a mortgage early or lost interest if savings are withdrawn.


The guidelines include notifying customers 30 days before rates are changed and then allowing them the following three months to repay the whole loan without incurring any penalties.


OFT director general John Bridgeman says: “It is unacceptable for banks and building societies to vary interest rates uncompetitively for those locked in to accounts.”

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