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Mortgage prisoner specific products

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 08. March 2023

Interested in speaking to brokers about mortgage prisoner-specific products, like the ones offered by UTB and West Brom. 

  • Have you ever used such products? What has the experience been like? 
  • Would you like to see more mortgage prisoner-specific products in the market? 
  • What are the potential barriers to take-up and how can they be navigated? 

 

3 responses from the Newspage community

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Editor
Aaron Strutt
Product and Communications Director at Trinity Financial
It is important that lenders provide more mortgage prisoner products for homeowners, especially now that standard variable rates are so shockingly high. Many borrowers do not know these products exist because they are not widely marketed. Some of the lenders offer product transfer rates to those with little or no equity but they are not widely available.
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Austyn Johnson
Founder at Mortgages For Actors
There are some great products available. But its more the affordability waiving that helps. For example, one lender will just take a mortgage on if they have had 12 months of good conduct and the new rate would benefit them. e.g. one of my clients lost his job 10 years ago and went s/e. His £200k mortgage is serviced by his £8k window cleaning job! We all know he earns more, but his tax forms stop him being able to remortgage.
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Thomas Collier
Advising Director at Advantage Financial Solutions
There’s a lack of understanding amongst the broker population as to what constitutes a Mortgage Prisoner, defined by the FCA. The FCA identified over 250,000 Mortgage Prisoners in 2020, these people should have all received letters confirming that they are considered to be mortgage prisoners. We don’t need prisoner specific products, what we need is a better understanding among brokers. NatWest, Santander and Halifax can lend to Mortgage Prisoners on their normal product range providing certain criteria are met. I have used Halifax recently for an individual who was a mortgage prisoner and the application offered very quickly, saving them over 3% on their interest rate whilst adding the comfort of a fixed period. Closed book lenders must do more to inform Prisoners of the options available to them.