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

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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