The Evening Standard reported at the end of August that Barclays Bank will be the first UK bank to completely scrap LOBO (Lender Option Borrower Option) loans after effectively removing £8 billion worth by turning them into fixed-rate loans at a cost of £182 million. The move, of course, provides a huge boost to the many boroughs and businesses of London who have been affected thus far by these type of loans.
Newham Council, has been, up until now, one of the biggest borrowers of LOBO loans with over 27 loans totalling in excess of £560 million. This will ultimately provide them with the stability they need going forwards. The other big LOBO lender, RBS, has yet to comment on the move, but with Barclays leading the way, we expect them to follow suit sooner rather than later.
Here at Vedanta Hedging, we are proud of the ongoing developments at Barclays and the other banks that have occured as a result of our campaigning. If you would like to read more about our efforts to combat these LOBO loans, have a look at our work with Channel 4’s Dispatches programme as well as our CEO giving live evidence to the Communities and Local Government Select Committee of MPs in Westminster.
If you would like to read more about these recent developments with Barclays Bank, then please click here.