Halifax, which falls underneath the Lloyds Banking Group, is a well known identify on Britain’s excessive streets and helps Britons with their financial savings. Nonetheless, the financial institution additionally gives vital assist to these seeking to safe a mortgage or remortgage. Britons who’ve confronted vital issues lately are a gaggle referred to as mortgage prisoners – who’re in a tough bind.
Mortgage prisoners are those that are unable to modify from their present mortgage deal to a brand new one, for quite a few causes.
Probably the most frequent, nonetheless, are individuals who haven’t been in a position to meet the strict borrowing standards underneath the Mortgage Market Overview, which befell in 2014.
In October 2019, the FCA launched guidelines to take away boundaries to switching to a extra reasonably priced deal for mortgage prisoners.
Nonetheless, the watchdog mentioned the change was not at all times potential and was depending on lenders providing appropriate choices to those debtors.
In July of this yr, the FCA put ahead a session which might assist mortgage prisoners additional.
It proposed to assist “closed guide debtors who could at present lack switching choices”, alongside one other proposal to assist debtors on interest-only offers.
The doc learn: “We suggest to amend our accountable lending guidelines in order that lenders can select to not undertake an ordinary affordability evaluation if the borrower in search of to modify to a brand new deal with out borrowing extra is at present in a closed guide inside the similar group because the lender.
“This could assist make it simpler for these debtors to take out a brand new mortgage contract.”
Specific.co.uk contacted Halifax for touch upon the brand new assist obtainable.
A spokesperson mentioned: “We’re eager to assist householders classed as ‘mortgage prisoners’.
“As a part of the FCA scheme, we will likely be accepting functions from debtors with different lenders.
“We encourage debtors to evaluate choices obtainable throughout the market to make sure they’ve obtained the best product for his or her circumstances.”