Do you have a mortgage because your circumstances have changed since you took it out? Perhaps with a lender that no longer exists?
The Financial Conduct Authority – FCA – has created an advice route for mortgage prisoners as it shakes up its lending rules for borrowers blocked from switching to a cheaper mortgage.
Christopher Woolard, executive director of strategy and competition at the FCA, said: “Responsible lending is hugely important, and unaffordable borrowing is a cause of significant harm.
“Mortgage prisoners are often stuck on more expensive mortgages. We are removing barriers to switching in our rules and we would like to see firms make changes to their own processes quickly in order that customers can benefit as soon as possible.”
The new rules will allow active lenders to use modified assessments for those trapped with unauthorised and inactive companies, potentially allowing them to switch, and force said firms to contact their consumers to inform them of the change.
The new rules came into effect on 28th October 2019.
Contact mortgages@pilpetersfield.co.uk for more details