Mortgage Prisoners – get out now

Are you stuck on a mortgage rate of 4% or more simply because you no longer meet your Lender’s current criteria?
No more – mortgage rates of half your current pay rate are now available to you.

Following concerns from the market with regard to homeowners stuck on unfavourable mortgage rates, the Financial Conduct Authority has consulted with 59 lenders in the UK residential mortgage market. Standards have now been agreed to help existing borrowers on reversion rates (standard variable rates) move to a more attractive product provided by the Lender.

This commitment was announced in July 2018 by UKFinance (a Trade body), the Intermediary Mortgage Lenders Association (IMLA), and the Building Societies Association (BSA).

What does the new Mortgage Prisoner release scheme mean?

The intention is to allow borrowers to swop to a more attractive mortgage rate with the same Lender even if:

  • The mortgage borrower’s credit profile would not meet the Lender’s requirements today
  • The mortgage borrower’s income would not meet the Lender’s requirements today

How can you halve your mortgage pay rate?

Your Lender will be writing to you to let you know you are eligible to swop, but there is no need to wait. You can start the process of making a saving today.

Under our free Mortgage Prisoner service we can investigate your options for you and get you on to a more competitive interest rate

  • Without – Lengthy interviews and endless paperwork
  • Without – Your needing to discuss your particular situation with your Lender
  • Without – A Broker Fee, the Lender will pay us for taking the work off of their toe
  • Without – Worrying about your income or credit profile

Mortgage Prisoners ‘Exit’ Criteria

Mortgage Prisoners seeking to benefit under the scheme would need to:

  • Be on reversion or standard variable rate
  • Be up-to-date with payments
  • Have a minimum outstanding loan of £10,000
  • Be owner occupiers
  • Be borrowers with an active Lender
  • Be looking to swap current lending to a new rate only (no extra borrowing)
  • Have no less than two years to run on their mortgage term

Finally, and most importantly, you must be able to benefit by switching – which, judging by the examples, below is a given.

How you can benefit

Examples, current lending on standard variable rate £100,000, 10 year term remaining


SVR Rate = 3.99%
Monthly Payment = £1,011

Rates available from 1.60%
Monthly Payment = £902

Monthly Saving £109


SVR Rate = 3.99%
Monthly Payment = £1,011

Rates available from 1.94%
Monthly Payment = £917

Monthly Saving £94


SVR Rate = 3.99%
Monthly Payment = £1,011

Rates available from 1.54%
Monthly Payment = £900

Monthly Saving £111


SVR Rate = 3.99%
Monthly Payment = £1,011

Rates available from 1.55%
Monthly Payment = £900

Monthly Saving £111


SVR Rate = 3.75%
Monthly Payment = £1,000

Rates available from 1.99%
Monthly Payment = £919

Monthly Saving £81

Scottish Widows Bank

SVR Rate = 3.99%
Monthly Payment = £1,011

Rates available from 2.04%
Monthly Payment = £921

Monthly Saving £79

Skipton Building Society

SVR Rate = 4.74%
Monthly Payment = £1,048

Rates available from 1.59%
Monthly Payment = £902

Monthly Saving £146

Virgin Money

SVR Rate = 4.55%
Monthly Payment = £1,031

Rates available from 1.94%
Monthly Payment = £904

Monthly Saving £127

These examples are intended to give a flavour only and do not take into account lenders product fees or changes in rates offered. The rates we have used in our examples are two year fixed rates available at the time of writing.

Lenders participating in the Mortgage Prisoner release scheme

  • Accord Mortgages
  • Bank of Ireland UK PLC
  • Bank of Scotland
  • Barclays UK Plc
  • Barnsley Building Society
  • Bath BS
  • Beverley Building Society
  • Britannia
  • Buckinghamshire BS
  • Cambridge Building Society
  • Chelsea Building Society
  • Chorley Building Society
  • Clydesdale Bank
  • The Co-operative Bank plc
  • Coventry Building Society
  • Darlington Building Society
  • Direct Line
  • Dudley Building Society
  • Family Building Society
  • First Direct
  • Halifax
  • Hanley Economic Building Society
  • Hinckley & Rugby Building Society
  • HSBC plc
  • Ipswich BS
  • Kensington Mortgages
  • Leeds Building Society
  • Leek United Building Society
  • Lloyds Bank
  • Mansfield Building Society
  • Market Harborough Building Society
  • M&S Bank
  • Metro Bank
  • Nationwide Building Society
  • NatWest
  • Newbury Building Society
  • Newcastle Building Society
  • Nottingham Building Society
  • Norwich & Peterborough BS
  • One Savings Bank Plc
  • Platform
  • Principality Building Society
  • Progressive Building Society
  • RBS plc
  • Saffron Building Society
  • Santander UK Plc
  • Scottish Building Society
  • Scottish Widows Bank
  • Skipton Building Society
  • Stafford Railway Building Society
  • Teachers Building Society
  • Tesco Bank
  • Tipton & Coseley Building Society
  • Ulster Bank
  • Vernon Building Society
  • Virgin Money
  • West Bromwich Building Society
  • Yorkshire Bank
  • Yorkshire Building Society

Exclusions which may prevent you swopping mortgage rate:

  • Any changes to terms of the mortgage – additional borrowing, changing mortgage term, removing a mortgageholder
  • Borrowers in arrears
  • Specialist product types no longer offered
  • Properties where consent to let has been provided
  • Mortgages held under a book sold by a closed lender

How the Mortgage Prisoner Problem arose

The Mortgage Market Review of October 2012 made major changes to the way regulation affects residential mortgages and how Lenders could operate. There were ‘Transitional Rules’ within the Review ensuring that existing borrowers were not disadvantaged due to changing financial circumstances. These Transitional Rules were largely ignored by Lenders due to concerns as to how the Regulator would approach enforcement. This new ‘Mortgage Prisoners’ initiative has both the Regulator and the Lenders in agreement to the benefit of mortgage holders.

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