FCA urges banks to free 'mortgage prisoners'

03 Dec 2021

Banks and building societies have been urged to consider changes to lending criteria to help so-called 'mortgage prisoners'.

The Financial Conduct Authority (FCA) has reviewed the situation of around 47,000 borrowers who could benefit from a cheaper home loan but are currently unable to move.

The review looked at the position of borrowers whose loans were sold on to new lenders after the financial crisis. At the last count, it found about 250,000 borrowers were affected, but the number has fallen as some borrowers have been able to move.

The FCA found that there were about 195,000 households whose debts had been sold on to inactive lenders and that a quarter of them could save money if they were allowed to switch to a new deal.

However, despite changes that have made it easier for banks to offer these borrowers home loans at a better rate than the one they are currently paying, the FCA found that demand from customers and supply from lenders has been low.

The FCA said: 'We hope that more mortgage prisoners will be able to switch their mortgage. We encourage lenders to consider if they can amend their lending criteria to lend to mortgage prisoners who are close to their risk appetite.'

Try a site search Tax return, dividends, pension, autumn statement...

SagexeroCCCI
Company details

01243 776938

James Todd & Co, 1&2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester, West Sussex PO19 1BJ
James Todd & Co, 1 Union Street, Fareham, Hampshire PO16 7XX
James Todd & Co, AD5 Littlehampton Marina, Ferry Road, Littlehampton, West Sussex BN17 5DS
Copyright

© 2022 James Todd & Co. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

Details of our Designated Professional Body (DPB) activities can be viewed at register.fca.org.uk. A member of the ICAEW Practice Assurance Scheme.