Commitment to help ‘mortgage prisoners’

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Lenders will write to thousands of “mortgage prisoners” at the time of paying high rates of interest, with a potential offer to move to a better deal.

The letters, which will arrive by the end of the year, will outline some of the alternative mortgage deals available from their lender.

Up to 10,000 homeowners who are trapped in their current rates of pay high rates.

Most of these owners have mortgage loans before the new, stricter rules on accessibility have been introduced in 2014.”Trapped”

An interim report on the mortgage market, published in May by the Financial Conduct Authority (FCA), has highlighted the situation of these borrowers.

These “mortgage prisoners” were able to move to a better deal when their mortgage switched to the more expensive standard variable rate, even if they could meet the payments.

This was the result of strict controls of access or a change in circumstances after the deal has been agreed.

The FCA said it had identified about 150,000 of those customers. Of these, about 30,000 were authorised to mortgage lenders, while about 120,000 had mortgages held by non-regulated businesses – which include some of the previous Northern Rock and Bradford & Bingley customers.
Mutual misery: The homeowners facing possession
People much less likely to go home, rather than in 1970
Properties taking longer to sell in the market lazy

10,000 of them are with credit institutions, which are still actively operating in the mortgage market.

It is people of this group that are designed to be helped by a commitment between 59 to lenders to help them to find the best offers.

The rules means that even today, in fact, be blocked by the research of the whole mortgage market for a cheaper fixed rate deal.

However, assuming that they are currently keeping up with the repayments, the commitment, organised by the trade body of the UNITED kingdom Finance – means that you will receive a letter from their existing lender who describe something similar, but cheaper, offerings.

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Jackie Bennett, director of mortgages in the UK Finance, said: “lenders have responded to the FCA challenge and has made a voluntary commitment to help these long-standing customers.”

However, given that the service providers can be – and have been – written to some customers already, UNITED kingdom Finance is likely to face accusations that he is doing the minimum in response to FCA call for an industry response to the problem.

A great name, at the moment, it is missing from a commitment to TSB, which has struggled with the fallout from her chaotic IS switching in these last few months.

A TSB spokesperson said: “We are fully UK Finance initiative, and we are working with them to completely understand how this project work. We hope to be able to participate in the program in the coming weeks.”

In its report, the FCA has also said a “significant minority” – about 30% of the general mortgage customer is not able to find the mortgage more affordable.

You want to make it easier for borrowers to see which mortgage products they can qualify for earlier in the application process, and to assess and compare these products.

However, the UNITED kingdom Finance has yet to offer solutions to this issue, claiming that further investigations are required. It is believed that the new technology should be given the time to help price comparisons, before any regulatory intervention.

Increase the number of bedrooms

Adjust the amount of the deposit

The regular monthly payment amount

No affordable areas

You have a large enough deposit and your monthly payments are high enough.
The prices are based on the local market. If there are 100 properties of the right size in an area and in price order with the cheapest first, the “low-end” of the market will be the 25th property, “mid-price” is 50 °, and “high-end” will be 75.

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