BSA comments on FCA Mortgage Prisoner Review: 66,000 could switch

Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association, commented on FCA Mortgage Prisoner Review as 66,000 could switch.

“We recognise the importance of helping those mortgage borrowers that are trapped on standard variable rate loans because their lender is no longer active or is unregulated and does not therefore offer any new mortgage products. 

“Rule changes in 2019 resulted in positive action being taken by a number of building societies and banks which have modified their lending criteria, enabling them to consider applications from these mortgage prisoners, although demand from these borrowers remains low. 

“We welcome the additional information from the Financial Conduct Authority today and we’ll continue to work with our members to determine what more we can do to further support these borrowers.

“In the meantime, we would encourage those affected to spend a few minutes completing the Money Helper mortgage prisoner eligibility tool, which offers advice on how borrowers can improve their likelihood of moving to a new mortgage and details of where independent information is available.

“The FCA has identified some 66,000 mortgage prisoners who may already be able to switch.”

Read the full FCA review here.

Kindly shared by The Building Societies Association (BSA)

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