LONDON (Reuters) – Tens of thousands of mortgage “prisoners” in Britain could be freed after the financial regulator said on Thursday it would ease affordability checks required by home loan providers when remortgaging to a cheaper deal.
The “prisoners” took out loans before tougher rules introduced since the financial crisis left them unable to meet stricter mortgage affordability tests, even if they have an unblemished record of repayments.
Interest - Rates - Britain - Customers - Mortgages
Interest rates in Britain have begun to rise, making it more pressing to help those customers locked into variable-rate mortgages with a high rate of interest unable to shop around for cheaper deals.
They include 10,000 customers at authorized lenders, 20,000 with firms that are no longer actively offering loans, and 120,000 with loans from firms not regulated by the UK’s Financial Conduct Authority (FCA).
Banks - UK - Finance - Trade - Body
Banks at UK Finance, a trade body, came to a voluntary arrangement earlier this year to allow some customers of authorized lenders to remortgage if they met basic conditions.
But lenders have said that changes were needed to help people who want to move home loans from an unregulated...
Wake Up To Breaking News!
It is time to put away the our toys and propaganda we've been taught as children and think for ourselves.