FCA opens door for ‘mortgage prisoners’, but many remain shackled

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By Tom Brown
29 Oct 2019

The Financial Conduct Authority (FCA) announced on Monday that it is introducing new rules to allow lenders in the UK to use a “more proportionate” affordability measure, allowing some of the 120,000 so-called ‘mortgage prisoners’ to refinance and escape high interest rates.

The announcement comes amid growing calls for reform, after regulatory changes saw mortgage borrowers trapped in high interest rate loans — some reaching 6% — costing customers thousands in additional interest. The issue spawned a debate with the potential to affect almost £30bn of outstanding UK mortgage ...

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