‘We must do more.’ Mortgage detainees are being asked to look at their choices as the review process begins.
MORTGAGE PRISONERS NEED MORE SUPPORT, according to one provider, who also advocates for increased public awareness.
Those who have been affected by considerably high rates due to situations beyond their control are referred to as mortgage prisoners. Due to inactivity or inability to authorise new products, many people have been unable to quit their present lenders. The problem isn’t new, but it became more prominent during the 2008 banking crisis, which hit numerous suppliers and their clients.
Currently, there are estimated to be 250,000 mortgage prisoners in the UK, but according to a recent analysis by the Financial Conduct Authority (FCA), there may be more of these consumers than previously anticipated.
The Financial Conduct Authority (FCA) will now conduct an investigation into the incident, looking into the number of mortgage prisoners, their effects, and how they might be released.
One supplier has advocated for more action in the midst of the current difficulty for mortgage inmates.
The West Bromwich Albion Building Society has stated that “we need to do more” to raise awareness of the possibilities available to this demographic.
It was the first to introduce amended affordability guidelines in September 2020, although it would like to see greater industry support.
“Since launching our products to support mortgage prisoners, we’ve been pleased with the borrowers we’ve been able to help so far, with some borrowers saving up to £700 on their monthly payments,” said Jonathan Westhoff, West Brom’s Chief Executive.
“While the experience has been excellent, we have always recognized that West Brom can only do so much to assist consumers in this scenario and have sought additional assistance from other lenders.
“Regardless of the response, we believe that far too few of these borrowers have been made aware of the possibility of drastically lowering their monthly mortgage payments.
“The FCA has announced a study of the matter and is in discussions with industry and stakeholders to identify what should be done next to assist these borrowers.
“We will participate in this process and are enthusiastic about finding solutions to help more borrowers.”
Mr Westhoff stated that those in “mortgage jail” should contact West Brom to check if they are entitled for a swap.
This is due to changes in the affordability guidelines, which may aid those who have previously run into roadblocks.
“Brinkwire Summary News,” by West.