You may have heard this term in the news, but what does it mean and are YOU a mortgage prisoner?
A mortgage prisoner is someone who took out a mortgage prior to 2014 and is now finding it difficult to switch to a better deal despite being up to date with payments.
You may be faced with not passing affordability checks because they have now become much stricter especially for the self-employed.
What are the changes that will help Mortgage Prisoners?
If you have come to the end of your fixed term then you may find that the new FCA policy change may benefit you. In October 2019 the FCA introduced changes to the rules that mean that affordability can be based on your mortgage payment history rather than the affordability assessments.
The change in rule has also meant that many mortgage firms are required to write to customers who are unable to switch and may benefit from the changes. However, receiving a letter does not automatically mean you are eligible for the changes. The eligibility tool on the Money Advice Service website will advise if you could be eligible.
Buy to let mortgages are not eligible to benefit from the new rules.
How could Bread and Butter Advice help you?
As an appointed representative of True Bearing Chartered Financial Planners, Bread and Butter Advice are a mortgage intermediary who can provide advice to mortgage prisoners.
To speak to one of our Financial Advisers, please call 0800 015 1069 or complete our contact us form.
Your Home may be repossessed if you do not keep up repayments on your mortgage.