Mortgage Prisoners

Mortgage prisoners are borrowers who are unable to switch to a more affordable mortgage, despite the fact that they are up to date with their payments, because they are trapped in their current mortgage due to changes in lending criteria or other factors.

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This can happen in a variety of situations, such as when a borrower’s income has decreased or when a mortgage lender is no longer able to offer new mortgages. Mortgage prisoners are often unable to take advantage of lower interest rates or better mortgage terms, which can lead to them paying more than they should for their mortgage.

In some cases, mortgage prisoners may also be trapped in their current mortgage because they owe more on their mortgage than their property is worth, which can make it difficult to refinance or switch to a new lender.

The Financial Conduct Authority (FCA) has acknowledged the issue of mortgage prisoners and has introduced new rules to help borrowers who are trapped in their mortgages to switch to more affordable mortgages. These new rules require mortgage lenders to offer more affordable deals to mortgage prisoners who meet certain eligibility criteria.

If you are a mortgage prisoner, it’s important to seek professional advice from a mortgage broker or financial advisor who can help you to understand your options and find a way to switch to a more affordable mortgage.

Contact us today to speak to one of our advisers and take the first step towards finding the right mortgage for you.