PARLIAMENTARY WRITTEN QUESTION
Mortgages (3 February 2020)

A mortgage prisoner is defined by the FCA as an existing customer that may be experiencing harm because they are unable to switch to a better deal. The Government is aware that these borrowers have been in a difficult and stressful situation. We have worked closely with the FCA to implement their rule change to remove the regulatory barrier that has prevented some customers from switching.

It is expected that lenders will need approximately 6 months to make the necessary adjustments and system changes, after which they will be able to use the modified affordability assessment for borrowers looking to re-mortgage.

I have written to Stephen Jones, Chief Executive Officer of UK Finance to outline my expectation that as many of its members as possible should move quickly to offer new deals to borrowers that are eligible to switch under the new FCA rules.