28th October 2019
APPG Statement on FCA Mortgage Affordability Policy Statement
Seema Malhotra MP, Co-chair of the All-Party Group on Mortgage Prisoners said “These changes should help stop a few mortgage prisoners being told that the FCA’s rules mean that they cannot afford a cheaper mortgage. Mortgage prisoners must be informed clearly and quickly about their new chance of escape and the names of the lenders applying the new modified affordability test.
But these changes are not enough, the FCA’s own cost benefit analysis suggests that these reforms won’t help 90% of mortgage prisoners. They will continue to remain stuck between UKAR’s policy of selling them on to inactive lenders trapping them paying high variable rates, the Government’s refusal to expand the scope of the regulatory framework and the FCA’s reluctance to use its existing powers to get them a fair deal.”
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