The Financial Conduct Authority (FCA) oversee the financial services sector of business in the United Kingdom and ensure that customers are treated fairly.
With this in mind, they have recently revealed plans to ensure that thousands of so-called ‘mortgage prisoners’ will be relieved of being trapped paying high-interest home loans with unregulated or inactive firms.
The FCA have said that they are going to be looking into a change of the affordability checks which may result in allowing those trapped on high-interest-rate home loans being able to swap on to plans that are much more affordable to them.
These customers will be given the chance to swap to deals that are easier to pay without the possibility of being penalised for doing so.
The changes would not apply to those who are not looking to borrow more on their mortgage and are only looking at reducing their monthly costs. It would have to be assessed as to whether new mortgage costs are more affordable than the current mortgage costs.
There would still be financial checks for these individuals to pass with the proposed new lenders be it a bank or building society.
If you’re trapped on your current mortgage deal or are looking at ways to reduce your monthly outgoings then why not speak to a Mortgage Adviser and find out what your options are.