Fitch backs variable rate plan

One of the leading global credit rating agencies has given a broad endorsement to plans that could see courts given the power to limit the rates banks charge standard variable rate mortgage customers.

Fitch Ratings said that a reduction in borrowing costs would improve the affordability of mortgages and help customers meet repayments.

This could also improve the underlying performance of mortgage pools which make up securitised vehicles known as residential mortgage backed securities (RMBS).