Member

We understand the intention behind the amendment, to provide relief to borrowers who may be paying more than they can reasonably afford. This case was made quite articulately by the noble Baroness, Lady Bowles, and the noble Lord, Lord Sharkey. Nevertheless, a cap on the rates paid, as envisioned by the amendment, would not in itself address why some borrowers cannot switch products. Indeed, previous analysis by the London School of Economics also raised concerns about the effectiveness and wider consequences of such a cap.