The Financial Conduct Authority (FCA) has revealed plans to free ‘mortgage prisoners.’
Mortgage prisoners are defined by around 140,000 homeowners are trapped on loans with high interest rates.
The plans were revealed by the FCA’s Chief Executive Andrew Bailey’s letter to the Treasury Committee on improving switching options for mortgage customers who are currently unable to do so,
Responding to the new Jackie Bennett, Director of Mortgages at UK Finance, said “It is a positive step that the FCA has set out the action it will take to help those customers stuck on reversion rates who are with inactive or unregulated lenders. The FCA has noted the progress made through the industry’s voluntary agreement to help borrowers with active lenders switch to a better deal.”
“But it has also recognised that regulatory changes are needed to remove the barriers to helping the thousands more customers who are currently with inactive and unregulated lenders.”
“We will continue to work constructively with our broad range of members and the FCA to help ensure those customers who want a like-for-like mortgage can switch lenders more easily.”