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Are you a mortgage prisoner?

A mortgage prisoner is generally defined as someone who can’t move to a cheaper mortgage because their financial circumstances have changed, which means they can’t pass a lender’s affordability requirements. The term covers a large group of people.

170,000
the estimated number of people who are classified as ‘mortgage prisoners’.

We quite often see mortgage prisoners who are in negative equity:

  • Those trapped on interest only mortgages.
  • Those who are suffering as a result of Covid-19 and have been pushed into arrears.
  • Those who have dangerous cladding in their property.
  • Those who took out a help-to-buy equity loan and can’t re-mortgage. 

That list isn’t exhaustive and so if you have questions about your situation and want to know what you can and can’t do it’s best to speak to a broker.

Help for mortgage prisoners

If you can’t switch to a more affordable mortgage, new rules from the FCA mean lenders have more flexibility to help you switch mortgage: Moneyadviceservice.org.uk

If you think you are a mortgage prisoner the Money Advice service has created a list of brokers that are willing to try and help.

If you can’t find a local broker on that list it’s worthwhile using Unbiased.co.uk to find one and contact them.