According the Financial Conduct Authority’s (FCA) Mortgage market study it is estimated that around 140,000 people were unable to change to a better deal on their mortgage. There are around 250,000 people in closed mortgage books or with firms that are not regulated by the FCA but with the new rules being bought in around 170,000 of these borrowers are up to date on payments and so would be eligible to switch.
The FCA have been working with lenders so that people who are mortgage prisoners with their current lender will have the option to move to a new lender and product subject to altered affordability checks as long as they are up to date on their current mortgage payment.
There are currently seven lenders now offering these products, which includes 3 of the largest lenders in the country and this should see Mortgage prisoners being able to reduce their interest rates and payments.
Lenders who are offering these mortgages will look to assess the affordability on their track record of making mortgage payments as long as they are not looking to move house or increase their borrowing amount.
With this development in the market it is likely that it will take time for people who are eligible to start the process. Once other lenders can see this in motion it is likely that more lenders will join this positive movement.
Speak to one of our advisers today to see if you could be eligible for these mortgage products.