Mortgage Prisoners Should Keep an Eye on Possible Relief Options

Mortgage Prisoners Should Keep an Eye on Possible Relief Options

Homeowners that have their current mortgage deal end without remortgaging are moved to their lender’s standard variable rate (SVR). For some, they could be facing an interest rate on a SVR that is double or more what they were used to paying. Afterwards, when a remortgage is desired, some homeowners will go to remortgage and find out they do not qualify. They are then considered to be prisoners to their mortgage with no option to take on a remortgage and gain the benefits of possible savings or a fixed rate for peace of mind against rising rates.

There are thousands that have found themselves to be mortgage prisoners. At the point a homeowner discovers they have no option to remortgage and are on a SVR they could be facing financial difficulty in keeping up repayments if the interest rate isn’t affordable.

There could be relief on the way. Lenders are starting to offer remortgage deals specifically for those that are mortgage prisoners.

The Financial Conduct Authority (FCA) has plans to help mortgage prisoners as well, but many see those plans as inefficient in comparison to the needs of homeowners. Pressure from consumer groups and others could help bring about more options and solutions to those that currently have none.

Experts suggest that homeowners discover whether it is their current lender that is holding them prisoner or if perhaps pushing aside loyalty could put a different lender to work for them or even a remortgage broker that could have insight on which lenders would offer a remortgage. For those that don’t qualify with any lender, perhaps counseling with an expert would offer a plan to follow that will bring them to a solution.

In addition, homeowners that are mortgage prisoners should keep an eye out for changes that will open up options and relief in the days to come so that quick action can be taken while the opportunities exist.

Obligation Free Remortgage Quotations

Get a Quote »