On 8 July 2020, the FCA published a call for mortgage intermediaries willing to help mortgage prisoners. The FCA is seeking expressions of interest from mortgage intermediaries that are willing to work with mortgage prisoners to help them identify and move to an active lender, where possible, or signpost them to additional support such as debt advice.
Chapter 11 of the FCA’s Mortgages and Home Finance: Conduct of Business sourcebook (MCOB 11.9) contains rules and guidance designed to facilitate borrowers switching mortgages, provided they have not taken out additional borrowing. By 1 December 2020, mortgage administrators must notify eligible customers of the possibility of switching lender. Using information that is to be published on the Money Advice Service website, these customers will be able to assess any options available to them.
Customers who may be able to remortgage will then be able to access a list of mortgage intermediaries who will work with them and provide the support that they may need. The list is aimed at helping customers find an intermediary and is not restrictive. Customers can approach mortgage intermediaries not on the list. The list will also allow lenders to see which intermediaries need to be kept up-to-date with any bespoke offerings for mortgage prisoners and any changes to their criteria or underwriting.
The FCA sets out the eligibility criteria for intermediaries applying to be included on the list. Individuals who do not meet the criteria, but still wish to be included on the list, should contact the FCA.
The deadline for submitting an expression of interest is 6 August 2020. Intermediaries that meet the deadline will be notified by 11 August 2020 that they will appear on the list.