Is there hope of the horizon for people trapped in their mortgage deals?


Posted 31 October 2019 | Mortgages

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Some Buy to Let mortgages are not regulated by the FCA.

Solicitors, valuers and surveyors are not regulated by the Financial Conduct Authority.

Conveyancing is not regulated by the Financial Conduct Authority.

Mortgage prisoners’ may be able to remortgage

You may have heard the term ‘mortgage prisoners’ but not know exactly what it is. Mortgage prisoners are those who are trapped in their current deal as they are unable to remortgage or move.

The Financial Conduct Authority (FCA) has estimated around 150,000 borrowers are stuck as ‘mortgage prisoners’.

Some of the main reasons are;

— A change in circumstances, such as credit issues or a lower income since they bought their home.
— Not meeting the affordability rules which changed in the 2014 Mortgage Market Review
— Negative equity – which could be due to the 2007/08 financial crisis
— Being stuck on your current mortgage deal can be a costly frustration.

Those that come to the end of their existing deal may be moved onto a lender’s Standard Variable Rate which can be expensive, with average rates higher than many available deals. In some cases, this could be more than double the rate of interest.

There may be hope on the horizon...download to read the full article

Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.

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