View more on these topics

FCA welcomes lenders’ pledge to help ‘mortgage prisoners’

Home-Houses-Different-Mortgage-Rent-700.jpgThe FCA has welcomed a commitment from three mortgage industry bodies to help borrowers tied to reversion rates switch products.

UK Finance, the Building Societies Association and the Intermediary Mortgage Lenders Association announced the commitment today.

The agreement, which covers 59 authorised lenders representing 93 per cent of the UK residential mortgage market, comes after the FCA identified issues in its Mortgages Market Study interim report.

The report identified a number of borrowers “who are on a reversion rate, are up-to-date with repayments and would benefit from switching to a new deal but cannot do so”.

Under the commitment, if a borrower is a first charge owner-occupier, an existing borrower of an active lender, on a reversion rate, looking for a like-for-like mortgage, is up to date with payments, has a minimum remaining term of two years, has a minimum outstanding loan amount of £10,000, and is able to benefit from switching, they will receive a letter from their lender by the end of this year.

In a statement, the FCA says: “We will work closely with industry to discuss the detail of this arrangement and monitor the impact it will have. We will also continue to work with industry to identify solutions for borrowers who have mortgages with inactive firms and any active lenders not signed up to this agreement.”

UK Finance director of mortgages Jackie Bennett says: “Lenders have responded to the FCA’s challenge and made a voluntary commitment to help these longstanding borrowers, offering them the ability to switch to an alternative product if they meet the agreed standard criteria.”

Bennett says more lenders are expected to participate in the coming months.

Recommended

Business Handshake 480

Tenet partners with mortgage network on wealth offering

Tenet has partnered with mortgage network the Mortgage Advice Bureau on a wealth and equity release offering. MAB plans to use the financial advice network’s business development support to grow beyond its 14 wealth advisers. It is understood MAB chose Tenet as a partner because it allows firms to give equity release advice. MAB wealth […]

5

Abraham Okusanya: The irresponsible absurdity of new longevity theories

Annuity providers are wrong to use such sci-fi, scaremongering sales tactics  Ancient scholars would have us believe Methuselah lived to a staggering 969 years, making him the oldest person in history. Little wonder the name became synonymous with longevity. British gerontologist Aubrey de Grey coined the term “Methuselarity” – a blend of Methuselah and singularity – […]

Hourglass-Clock-Time-Race-Measure-700x450.jpg
2

Are you ready for the Insurance Distribution Directive?

Firms must change initial disclosure documents before the 1 October deadline This year has already been a challenging one for advisers, but with the delayed implementation of the Insurance Distribution Directive taking effect on 1 October, further regulatory change is just around the corner. New rules introduced by the IDD include upfront disclosures that firms […]

Business-Finance-General-Paperwork-Calculator-Investment-700.jpg

Investment research and our Tactical Asset Allocation process

David Shairp, Head of Research at the Prudential Portfolio Management Group (PPMG), investigates the range of factors that multi- asset investors use to derive market insights and views that inform portfolio decisions. These would typically include valuation, macro factors, and behavioural or market timing factors. Many investors usually separate strategic and tactical asset allocation decisions. […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com