Mortgage prisoners find their freedom after being locked in expensive deals since 2008 clampdown
Mortgage prisoners are finally being freed from expensive deals after overpaying for years – but many are still trapped.
An estimated 250,000 borrowers are stuck on high-interest loans after a clamp down following the 2008 financial crisis prevented homeowners from remortgaging.
After the Financial Conduct Authority intervened last year, banks and building societies have relaxed lending criteria for customers who have been up-to-date on repayments for 12 months and are not looking to borrow more.
An estimated 250,000 borrowers are stuck on high-interest loans after a clamp down following the 2008 financial crisis
Four lenders – Halifax, NatWest, Santander and West Brom Building Society – have so far changed their policies.
One customer, Maurice Latimer, 76, has seen his monthly mortgage payments slashed from £886 to £401.
He had an interest-only mortgage with Northern Rock in 2001.
After the bank collapsed he could not remortgage as he and his wife’s joint income was too low and he was turning 65 before the end of the mortgage term.
The new rules may help 14,000 mortgage prisoners.
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