{"id":2229,"date":"2023-05-03T11:02:21","date_gmt":"2023-05-03T10:02:21","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=2229"},"modified":"2023-05-03T12:09:49","modified_gmt":"2023-05-03T11:09:49","slug":"what-next-for-mortgage-prisoners","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2023\/05\/03\/what-next-for-mortgage-prisoners\/","title":{"rendered":"What next for \u2018Mortgage Prisoners\u2019"},"content":{"rendered":"
\n

The Financial Conduct Authority (FCA) has been reported to estimate more than a quarter of a million homeowners are trapped on mortgage deals because they don\u2019t pass current strict affordability tests or their administrators have become inactive.<\/strong> <\/p>\n<\/div>\n\n

\n

Trapped<\/strong> <\/p>\n<\/div>\n\n

\n

\u2018Mortgage prisoners\u2019<\/em> often have interest rates as high as 8%, significantly above the current market rate. The majority took out a mortgage before 2008 at a time when lending rules were far more relaxed. <\/p>\n<\/div>\n\n

\n

As a result, many \u2018mortgage prisoners\u2019<\/em> are no longer able to keep up with repayments. Campaigners are calling again for government action to free the prisoners from unaffordable deals. <\/p>\n<\/div>\n\n

\n

A way out?<\/strong> <\/p>\n<\/div>\n\n

\n

Despite the precarious situation faced by many, there can be options to escape such costly deals. Given the complicated nature of some of these arrangements, the best way to see if you can switch is to get advice from an expert. <\/p>\n<\/div>\n\n

\n

It is possible you might be able to switch because revised provisions now allow lenders to conduct a \u2018modified affordability assessment.\u2019<\/em> Lenders can now waive some of the strict checks but only if they choose to. <\/p>\n<\/div>\n\n

\n

Stay but switch<\/strong> <\/p>\n<\/div>\n\n

\n

Another option that might be available to some \u2018mortgage prisoners\u2019 is to switch to a different deal with the same lender. Similarly, if your lender is part of a wider group, you might be able to find a new deal with an active lender in that group. Let\u2019s consider your options together. <\/p>\n<\/div>\n\n

\n

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.<\/em><\/strong> <\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

The Financial Conduct Authority (FCA) has been reported to estimate more than a quarter of a million homeowners are trapped on mortgage deals because they don\u2019t pass current strict affordability tests or their administrators have become inactive.  Trapped  \u2018Mortgage prisoners\u2019 often have interest rates as high as 8%, significantly above the current market rate. The […]<\/p>\n","protected":false},"author":4,"featured_media":2230,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,76],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/2229"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=2229"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/2229\/revisions"}],"predecessor-version":[{"id":2234,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/2229\/revisions\/2234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/2230"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=2229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=2229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=2229"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=2229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}