How Equity Release is helping Mortgage Prisoners
47,000 Home owners stuck on expensive home loans are defined as mortgage prisoners by The FCA The FCA has published it’s mortgage prisoner review, which was commissioned by the government. The report has found there are 47,000 homeowners stuck on expensive home loans that they cannot afford to get out of. This is just the tip of the iceberg as there are 195,000 mortgages in closed books with inactive firms, 34,000 are in payment shortfall and 18,000 are near the end of their mortgage term with no adequate repayment strategy or have a payment shortfall. these borrowers wouldn't be able to switch to a new deal, even if they were with an active lender. Mortgage prisoners are homeowners trapped on pricey mortgage deals, unable to switch to cheaper ones mainly because they don't pass current strict affordability tests. Typically, they took out mortgages with lenders before the 2008 financial crash when lending rules wer...