Mortgage prisoners 'being failed by lenders & regulator'

The intermediary trade body, the AMI, released its Quarterly Economic Bulletin today in which it said that lenders and the FCA are continuing to fail mortgage prisoners.

Related topics:  Mortgages
Amy Loddington
28th July 2016
mortgage house prisoner

The trade body said that both lenders and the FCA are refusing to acknowledge those who have no options when wishing to remortgage when they are conducting assessments to measure the so-called success of the Mortgage Market Review.

Financial Reporter has contacted the FCA for comment.

The bulletin continued:

"We believe that the agenda is now shifting and that others share AMI’s view that a wave of invisible mortgage prisoners exists and these ostracised borrowers require better support from mortgage providers. Our research suggests that up to one million mortgage prisoners are being neglected by the FCA and lenders because they do not fall within the remit of the regulator’s review of responsible lending.

"Indeed the regulator has gone on record to admit it 'hadn’t looked at whether trapped borrowers exist or don’t – we are just looking at the rules and their flexibility'. AMI members tell us that brokers are seeing many, many borrowers who continue to struggle to remortgage – despite transitional arrangements still in place even following the Mortgage Credit Directive implementation. Borrowers in the areas of interest-only, lending into retirement, self-employed, contract workers, foreign currency earners and ex-pats still need attention if the market is to serve the whole."

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