Until recently people with mortgages from lenders who effectively closed their books (no longer accepted new mortgages) became mortgage prisoners. This was because they were unable to transfer their mortgage on to a cheaper rate with their current lender or remortgage to a cheaper deal with another lender as a result of policy and criteria changes across the market.
As of Monday 12 October, The Financial Conduct Authority introduced new rules that will allow other lenders more flexibility to consider remortgage applications from these type of customers.
While this good news, people with mortgages still have to pass the criteria that determines whether they are a “mortgage prisoner” or not. Then they will have to meet the new lender’s standard or alternative affordability assessments before any application can be processed.
Alison Mitchell, director at RobMac said “This is great news for many clients that have been stuck with nowhere to go. Any potential clients who are classed as Mortgage prisoners, will receive a letter from their existing lender referring them to the Money Advice Service Website. I would certainly advise anyone who finds themselves in this position to get in touch. This will not only save them a huge amount of time, but is likely to result on a better deal as well.
If any of the above is of interest to you and you would like to discuss your mortgage further, you can arrange to meet online with one of our financial advisers by scheduling an online meeting here >>
