You may have heard the term “mortgage prisoners” before but unsure what this means or whether your situation defines you as a mortgage prisoner.
Mortgage Prisoners are in a situation where they have been told by their mortgage provider that they can’t re-mortgage on the grounds of affordability, even though they are keeping up with their repayments and want to switch to a CHEAPER rate.
Accordingly to the FCA, there are three main categories of mortgage prisoners:
Mortgage prisoners that are with unregulated/unauthorised lenders. This makes is harder for the FCA to help mortgage prisoners who have mortgages with such lenders.
Mortgage prisoners with inactive lenders. These are mortgage provider who no longer off new mortgage products to new or existing customers. Therefore mortgage prisoners who can’t pass affordability checks with other providers can’t move to another provider for a better deal and are stuck on their current deal.
Mortgage prisoners who have a mortgage with a FCA regulated company that are stuck on a rate after their initial incentive or fixed rate period has ended but can’t move to a better deal due to stricter affordability checks. These lenders have pledged to help customers stuck in this situation, however it is unlikely to help customers who are:
Have very high loan-to-value mortgages.
Have considerable debts.
Have mortgages in negative equity.
Get in touch to see if we can build a case that your mortgage was mis-sold.