FCA acts to help 'mortgage prisoners' find cheaper deals

Mortgages Market Study

Julian Marr
clock • 3 min read

So-called 'mortgage prisoners' could soon be able to find a cheaper deal as a result of proposed changes from the Financial Conduct Authority (FCA) on how lenders assess whether or not a customer can afford the loan.

In the final report of its Mortgages Market Study, MS16/2, published this morning (26 March), the FCA confirmed its earlier findings that the mortgage market is "working well in many respects but falls short of the FCA's vision in some specific ways". The regulator's consultation on new lending rules, CP19/14, forms part of a package of remedies that seek to help the market work better, particularly with regard to so-called ‘mortgage prisoners' - mortgage customers who have previously been unable to switch mortgages despite being up-to-date with their payments. In addition, the FCA's ...

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