Mortgage Prisoners

  • Specialist Mortgage Advisers
  • Thousands of Mortgage Products Available
  • See if we can help you find the right deal


Get in touch for a free, no-obligation chat about how we might be able to help you.
[]
1 Step 1
Tick this box if you do not want your details to be stored on our database, which may then be used for marketing purposes:
Please tick how you would like us to contact you.
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right

Mortgage Prisoners – Do You Have Options

What is a Mortgage Prisoner?

A mortgage prisoner is someone who is tied to their current mortgage lender unable to switch onto a new mortgage deal. This can happen due to changes in affordability checks even if you have kept up with your mortgage payments. It can also happen if your mortgage provider changes to a closed book provider. It is worth seeing a professional mortgage adviser to seek mortgage advice on how to escape your existing lender. You can then begin to explore different mortgage rates and interest rates and hopefully switch to a more affordable mortgage.

Closed Book Mortgage Provider – What is it?

A closed book mortgage provider is a lender who is no longer active. This means they are no longer offering mortgage products even to their existing customers. It would mean that there are customers out there who are looking to switch to different mortgage providers but due to changes in checks, haven’t been able to.

How Does Someone Become a Mortgage Prisoner?

In 2008 there was a credit crisis where the Financial Conduct Authority (FCA) changed the affordability rules. This was because some lenders were lending irresponsibility and means that lenders are now much stricter. It resulted in thousands of people becoming trapped in their mortgages. In October 2019 an update was issued to that policy statement, which actually gave the mortgage lenders a little bit more freedom when considering mortgage prisoners. They effectively introduced a modified affordability assessment that lenders can choose to use to lend to mortgage prisoners.

Mortgage Prisoners

Criteria for Modified Affordability Check

There are specific criteria you will need to fit in order to access the softer affordability check.
  • You must be up to date with mortgage repayments with no missed payments in the past year
  • You must have at least five years remaining on your mortgage
  • The mortgage has to be of at least £50,000
  • The minimum loan to value is 85%
  • The check is only offered for residential remortgages.
  • Minimum property value of £60,000

How can a Mortgage Broker Help?

A mortgage broker will have an initial conversation with you to determine what your options might be. There is no obligation to proceed any further than a general enquiry and a small amount of expert advice can go a long way. Mortgage brokers have knowledge of the mortgage market as well as strong relationships with lenders. They will be able to advise you on the right option for you and ensure you know what you are commiting to. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

YOUR HOME/PROPERTY MAYBE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE

Looking for a mortgage?

We can help you navigate the maze of mortgage options and guide your through the process​

First Time Buyers | Homemovers | New Build | Help to Buy | Shared Ownership | Self Employed | Poor credit | Remortgages | Help to Buy refinance | Debt Consolidation | Shared Ownership | Buy to Let | Let to Buy |

Email Us

[]
1 Step 1
Please tick how you would like us to contact you.
Tick this box if you do not want your details to be stored on our database, which may then be used for marketing purposes:

The internet is not a secure medium and the privacy of your data cannot be guaranteed.

keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right