Statement on Mortgage Prisoners
Published 22 July 2021
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The Government and the Financial Conduct Authority (FCA) remain committed to seeking additional options for borrowers with inactive firms who are unable to get a deal with a new lender. In April 2021, the Economic Secretary announced that the FCA will review their data on borrowers with inactive firms who are unable to switch, despite being up to date with payments, as well as the effect of its recent interventions to remove regulatory barriers to switching. The FCA have published their terms of reference for this review.
Following the review, the Government and the signatories from industry, with the necessary input and support from the regulators, commit to working together (including seeking further engagement with inactive firms) to look for practical and proportionate solutions to help as many affected borrowers as possible switch to an active lender, should this be the customer’s wish. This could include taking advantage of the Modified Affordability Assessment, offering additional flexibility around other aspects of the underwriting process, or other steps to reduce the barriers preventing these borrowers from switching to a better deal.
Helpful information for borrowers with inactive firms who are up to date with payments and want to switch their mortgage can be found on the Money Helper website - ‘Help for mortgage prisoners’ guide.
Industry Signatories
Association of Mortgage Intermediaries Barclays Bank UK Building Societies Association HSBC UK Bank Lloyds Banking Group Nationwide Building Society NatWest Group Santander UK UK Finance