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Banks are gearing up for a legal battle ahead of tomorrow's interest rate decision which could mean they owe borrowers money.
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Lenders are being criticized for "freely offering" such deals before the credit crisis when they were keen to attract business.
Ray Boulger, of mortgage brokers John Charcol, said lenders should not be allowed to break these contracts because circumstances have changed and it is no longer in their interest to maintain them.
He called on lenders to credit borrowers' mortgage accounts with any negative interest rather than actually pay it to them. The money would then act as an overpayment on their mortgage and would help to reduce the amount that a borrower owes on their property.
Ray Boulger, of mortgage brokers John Charcol, said lenders should not be allowed to break these contracts because circumstances have changed and it is no longer in their interest to maintain them.
He called on lenders to credit borrowers' mortgage accounts with any negative interest rather than actually pay it to them. The money would then act as an overpayment on their mortgage and would help to reduce the amount that a borrower owes on their property.
