ARE YOU A MORTGAGE PRISONER?
Homeowners who have been dubbed ‘mortgage prisoners’ are people trapped in their current mortgage and who are unable to switch to a new mortgage - even if they are up to date with their payments.
How do you become a mortgage prisoner? If you cannot leave your current mortgage because your financial circumstances have changed, you are a mortgage prisoner. Your new financial situation could prevent you from passing a new lender's affordability checks. It means you're trapped in your existing mortgage even if a remortgage would get you a cheaper deal.
This can be a big problem if you have a large mortgage or you’re on your lender's standard variable rate (SVR). The good news is that new rules from the Financial Conduct Authority (FCA) mean lenders have more flexibility to help you switch mortgage. There are caveats, of course, so to find out if you are likely to be accepted, head to The Money Advice Service to access their checking tool.
Once you've done that - get in touch with us so that we can find you a new mortgage. Helping people is what we do best, so we are looking forward to hearing from you.
Willow Tree Financial Services 01323 436680