FCA issues call to intermediaries willing to help mortgage prisoners

The FCA is asking to hear from mortgage intermediaries who will work with mortgage prisoners to help them identify and move to an active lender where possible, or signpost them to additional support such as debt advice.

Related topics:  Mortgages
Rozi Jones
10th July 2020
FCA new

Its research, published in January 2020, showed that around 170,000 borrowers with mortgages in closed books or owned by unregulated entities were up-to-date with payments and would be eligible to switch mortgages because of its new rules.

These rules allow lenders to assess affordability based on a borrower’s track record of making mortgage payments.

The FCA estimates that around 14,000 borrowers should be both likely to meet firms’ commercial lending criteria and stand to make a meaningful saving.

Mortgage administrators are required to contact eligible customers by 1st December 2020. Typically, this will involve sending out letters that encourage customers to seek more information from the Money Advice Service provided by the Money and Pensions Service.

Customers who may be able to remortgage will then be able to access a list of mortgage intermediaries who will work with them and provide the support that they may need.

This list is aimed at helping customers find an intermediary and will also allow lenders to see which intermediaries need to be kept up-to-date with any bespoke offerings for mortgage prisoners and any changes to their criteria or underwriting.

Intermediaries who wish to apply must:

- be able to access mortgage options that represent the whole of the market
- be able to advise on later life options or have a relevant referral route
- be able to advise on debt consolidation or have a relevant referral route
- not charge a fee until an application is submitted to a lender (the fee may be added to the loan)
- collect and share relevant data with the FCA on the support they have provided

Applications can be accepted from directly authorised firms and the authorised principal firm of appointed representative networks. Networks can specify how their contact details appear on the list, ie as one central contact point for consumers or with contacts given for some or all their appointed representatives.

Interested intermediaries are asked to submit an expression of interest confirming that they meet the criteria to intermediarylistEOI@maps.org.uk by 6th August 2020.

Intermediaries will be notified by 11th August that they will appear on the alphabetical list of mortgage intermediaries held on the Money Advice Service website.

 

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