The Financial Conduct Authority (FCA) has been reported to estimate over a quarter of a million homeowners are trapped on mortgage deals because their lenders have become inactive or unable to authorise new products1.
What could change?
Many of these ‘mortgage prisoners’ are no longer able to keep up with repayments, prompting campaigners to reiterate their calls for government action to free the prisoners from unaffordable deals.
After the latest Bank Rate rise, the situation has worsened, especially for those on variable or tracker rates. In total, more than 750,000 households are now at risk of mortgage default, according to the FCA.
1FCA, 2023
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home.