skip to Main Content

Mortgage prisoners

Feeling trapped? Our FCA recommended advisors help hundreds of mortgage prisoners switch to a cheaper deal

Let’s Talk
google logoRated Excellent!Rated Excellent!
4.9 Stars - Based on 55 Client Reviews

Advice for
mortgage prisoners

Over the years, thousands of homeowners have found themselves as mortgage prisoners trapped in a mortgage without the option to remortgage. This usually means being stuck on a high standard variable rate (SVR) and paying over the top for their homes.

This situation is often the result of the 2008 financial crash and strict lending rules introduced by the Mortgage Market Review (MMR) in 2014.

If you are also stuck and can’t seem to move forward, you may qualify as a mortgage prisoner. If so, your lender would have sent you a letter in 2020 to identify you as a mortgage prisoner.

The good news is that based on the new FCA guidelines, some lenders are offering to help mortgage prisoners remortgage even if they don’t meet the usual lending criteria.

Ready when you are – as FCA registered mortgage prisoner brokers, we are happy to review your situation to see if we can find you a better deal and then arrange the remortgage for you.

How much can I borrow?

How much will my mortgage cost?

Find a mortgage

Whole of market

We offer independent mortgage advice across the whole market – not just what you can find on the high street.

  • Access to over 130 lenders
  • Choice of over 20,000 deals

All this means we’ll always guarantee to find you the best mortgage prisoner deal available.

Always available

We work around your busy life to make getting a mortgage as easy as possible.

  • Contact us in the way you prefer: phone, email, Whatsapp, or face-to-face.

You don’t need to faff with the Post Office queue either:

  • Upload all your documents using our 24/7 online upload tool.

We do the hard work

Without a broker, you’ll miss out on exclusive deals you can’t find on the high street.

We’re experts on lender criteria:

  • We’ll research and recommend only the most suitable options for you.
  • We’ll also complete all the paperwork for you, to make sure your mortgage application is successful.

Why choose us

Why Choose Us

All about mortgage prisoners

Essentially, the FCA considers you a mortgage prisoner if you cannot switch from your current mortgage to a new one, typically due to affordability or property-related issues.

You might already be on the lender’s standard variable rate (SVR) or be a customer of an inactive lender, who owns and collects mortgage debt, but can’t give a new mortgage or offer you a new deal. Most of the original lenders went bust during the 2008 financial crisis when they collapsed and sold their loan books to 3rd parties.

If you are a mortgage prisoner, then your lender would have written to inform you of the new changes and how they could benefit you. Some lenders require this letter when you apply for a new mortgage, so keep hold of it.

According to the Financial Conduct Authority’s (FCA) estimate, there are around 250,000 mortgage prisoners with inactive lenders or asset management companies.

The FCA guidelines for mortgage prisoners may apply to you if you can’t switch lenders or can’t secure a new deal to benefit from a lower interest rate and lower monthly payments, or both. This may be because

  • Your mortgage balance is too high compared to the property value. For example, your mortgage balance is £190,000, and the property is worth £200,000.
  • Your mortgage balance is too high compared to your household income. For example, you earn £30,000 per annum, so a £190,000 mortgage is over six times your income, which is not usually acceptable for lenders.
  • Your property is not deemed safe under the new cladding safety guidelines, or it has recently started to show signs of movement.
  • Your mortgage is on an interest-only basis and is over 50-75% of the property value. Lenders would not normally give you a mortgage under this scenario.
  • You and your ex-partner are on the mortgage together, you are unable to remortgage without their income, and they are unwilling to sell the property.

The good news is that in most of these cases where you can’t get a remortgage deal from a different lender, we can still help you secure a new one from your existing lender.

If your lender cannot offer you a new deal, and you can’t remortgage to another lender due to your circumstances or the property itself, then we can still help. You could qualify as a mortgage prisoner and benefit from the new affordability rules introduced by the FCA.

Following the Financial Conduct Authority’s (FCA) new guidelines for mortgage prisoners, several lenders have adopted a modified affordability assessment to help mortgage prisoners. This, amongst other measures, allows for a higher income multiplier than what the lender would usually accept.

If you are unsure whether you are eligible and would qualify, we suggest you get in touch with one of our expert advisors to go over your options and use their expertise to secure a better deal.

The FCA has an official page for mortgage prisoners with more details of the new guidelines. The page also lists us as a mortgage broker firm committed to helping mortgage prisoners.

No, you don’t have to. However, we have specialist knowledge of the mortgage market including access to all lenders who help mortgage prisoners.

We also assess your options with all lenders without you having to speak to all lenders individually. In other words, we save you time and money and provide specialist advice throughout your remortgage journey.

No. Whilst the Financial Conduct Authority (FCA) is encouraging all lenders to adopt the modified assessment rules for mortgage prisoners, only a handful of lenders have done so.

The answer will depend on your circumstances, so it is a good idea to speak to a mortgage broker – like us – to find out what you could be eligible for.

If you missed a mortgage payment within the last 12 months, then you won’t be eligible to apply for a new deal under the mortgage prisoner rules. You will have to wait until you have made 12 consecutive mortgage payments on time and in full.

Yes. If you took advantage of the mortgage payment holiday that the government made available to everyone in 2020 due to the Covid-19 pandemic, then you won’t be penalised and could apply for a mortgage prisoner deal.

Yes, you could potentially remortgage to a better deal. You could do this through the mortgage prisoner route or by switching to a retirement interest-only (RIO) mortgage or equity release.

Once we review your situation, we will be able to advise you regarding your options and take you through all the steps needed to secure a better deal.

Lenders have various conditions attached to interest-only mortgage deals: they would normally want a minimum level of equity in the property, minimum income and may limit the mortgage to 50-75% of the property value.

However, if you are an eligible mortgage prisoner and just looking to get a better deal without borrowing more, you could do so based on the mortgage prisoner rules.

It is true that if you repay or remortgage only the part, which is on an interest-only basis, the interest rate for the other part shoots up. However, you could potentially remortgage both mortgage parts to a lower interest rate deal.

Homebuyers normally used Together mortgages to borrow 100-120% of the purchase price pre-2008. However, as the part on repayment basis would have reduced since you took out the mortgage and, in most cases, the property value has increased, it is likely that the two parts together are now way less than the property value. Because of this, a remortgage is now possible for most clients.

Remortgaging as a mortgage prisoner is very similar to doing a “normal” remortgage.

  • We assess your situation and options
  • We agree on the deal to go for and collect the necessary information and documents
  • We apply for the mortgage on your behalf
  • The lender assesses your details and documents, values the property and issues the mortgage offer
  • The solicitor (appointed by you or by the lender) goes through the legal process
  • The remortgage completes by the solicitor switching you over to the new deal

Mortgage prisoners can expect the same timeline as anyone else switching their mortgage onto a new deal with a new lender. It usually takes 4-8 weeks, but dependent on individual circumstances and based on how busy the lender, the valuers and the solicitors are, it might take a shorter or longer period.

Building insurance

With every mortgage, building insurance is mandatory to ensure that in case the structure is damaged (e.g. by fire, flood or movement), the insurance will cover at least the mortgage amount.

Nothing else is compulsory, but of course, it makes sense to cover costly unexpected events.

Contents insurance

Contents insurance can pay for replacing your personal belongings if someone burgles your home, there is fire, you accidentally drop your new flat screen TV…and the list goes on.

Landlord insurance

If you’re planning to rent out your property then you should consider getting landlord insurance. Landlord insurance protects you as a landlord from risks associated with your rental property. It usually includes buildings and contents insurance, but can also include rental-property specific covers such as protection against loss of rent, and tenant default. It can also cover legal fees and compensation for damage or injury to the tenant due to the property.

Life insurance

Life insurance is a one-off payment if you were to die during the mortgage term, so the insurance can settle your mortgage. This would allow your family to stay in the property without worrying about mortgage payments at an already stressful time.

Critical illness cover

Critical illness cover would give you a lump-sum if you had a serious illness like cancer, heart attack or stroke as well as dozens of other conditions. This payment may or may not settle the mortgage, but it can help pay for treatment, let you take time off work while recovering or alter your home, if necessary.

Income protection

Income protection is designed to give you a monthly income for some time in case you can’t work due to an accident or a long term illness. This covers mental health issues as well.

Of course, all the insurances come with terms and conditions, optional features and your medical history can influence your options.

To find the right insurance cover that fits within your budget, speak to our team today. We can compare the whole market, find the most suitable cover and apply on your behalf free of charge.

Independent mortgage brokers serving the entire UK

We don’t think you should waste time filling out forms that aren’t relevant to your mortgage needs.

That’s why we like to speak to you first and build a personal relationship, so you can remain assured you’re getting the best service.

Get personalised mortgage advice today

0208 835 7036





    Call meEmail me

    Mortgage tools

    Clients Reviews

    Mortgage calculators

    From working out how much you can afford to borrow to understanding how offset mortgages work, our calculators can help.

    Discover how much you could save by overpaying on your mortgage, or what monthly rent you’ll need to charge to cover a buy to let mortgage repayment, with our handy mortgage calculators.

    Mortgage calculators

    Mortgage finder

    Only looking at high street offers restricts how much you could borrow (and often means a more expensive mortgage, too).

    We have whole of market access to mortgage deals with over 130 lenders. That’s over 20,000 mortgage deals to choose from!

    Take a look with our mortgage finder tool to see some of the mortgage deals you could qualify for if you use our independent mortgage broker service.

    Mortgage finder

    Latest mortgage best buys

    First time buyer
    LenderHalifax
    Type2 year fixed
    Rate1
    Ltv90%
    More info
    Home mover
    LenderHalifax
    Type2 year fixed
    Rate1
    Ltv90%
    More info
    Remortgage
    LenderHalifax
    Type2 year fixed
    Rate1
    Ltv90%
    More info
    Buy to Let
    LenderHalifax
    Type2 year fixed
    Rate1
    Ltv90%
    More info

    I went through a number of less-than-helpful mortgage advisors before Lilla was recommended to me by a friend.
    From the start the service provided was outstanding. Both Lilla and Alex were...
    read more

    Ben Hodder Avatar
    Ben Hodder
    07/12/2020

    If it would be possible then I would give 10 stars out of the 5.
    Lilla Dilliway is the best mortgage broker ever, very experienced, always available and has all the...
    read more

    Gabor Debreczeni-Kis Avatar
    Gabor Debreczeni-Kis
    06/12/2020

    I would highly recommend the services of BlueWing Financials and would especially like to thank Lilla and Alexandra, our case handles.

    I was in the process of purchasing my first...
    read more

    Ágnes Jakubisz Avatar
    Ágnes Jakubisz
    17/05/2020

    I used BlueWing Financials to complete my house purchase recently and was incredibly pleased with one's service received. Everything ran smoothly and was explained clearly for me to understand. Lilla... read more

    Buza István Avatar
    Buza István
    17/05/2020

    I started dealing with BlueWing Financials in 2019 when I started looking for property deals and arranging for mortgage. Lilla was really helpful when I first got in touch and... read more

    Ivan Bekriev Avatar
    Ivan Bekriev
    01/03/2020

    Outstanding! Patient, detailed advice and really helpful. Nick went above and beyond through a challenging process and was always reassuring. Thank you!

    John Tween Avatar
    John Tween
    22/10/2019

    I highly recommend Lilla, Alex and the team, they've been extremely helpful with my mortgage process

    Gergely Szimandl Avatar
    Gergely Szimandl
    04/06/2019

    Thanks to Lilla, the process of buying our flat had been way easier than we expected and feared. She was super supportive and always ready to go the extra mile,... read more

    Pierpaolo Avatar
    Pierpaolo
    24/05/2019

    I am extremely happy with service, I received. Lilla is very helpful and thoughtful. She explained everything to me thoroughly, when I struggled with the legal terms. She is very... read more

    Bernadett Domjan Avatar
    Bernadett Domjan
    18/03/2019

    Very helpful and have provided me with 2 mortgages to date.

    Jerome Purrier Avatar
    Jerome Purrier
    14/01/2019

    I have worked with Lilla for many years and confidently refer her to other people in my network for her services. A true expert in her field, I've found that... read more

    David Kidd Avatar
    David Kidd
    07/01/2019

    I was first recommended to Lilla from my sister in law who had used her previously. I can’t thank her enough for putting her through to me.
    Lilla has been so...
    read more

    Sophie Habibis Avatar
    Sophie Habibis
    15/12/2018

    I have been working with Lilla @ Bluewing Financials for 5 years now and cannot recommend her highly enough. Lilla has supported me in buying two properties and with various... read more

    Simon Gray Avatar
    Simon Gray
    08/10/2018

    Couldn't recommend Lilla and the team highly enough. Very friendly and thoroughly professional throughout our (occasionally!) stressful journey to secure a mortgage in these crazy times. Answered all of our... read more

    Adam Stiley Avatar
    Adam Stiley
    06/01/2021

    Really great from start to finish. Friendly, detailed, quick to respond to any question. We are first time buyers and couldn’t be happier. Couldn’t recommend more.

    Jan Griffiths Avatar
    Jan Griffiths
    18/11/2020

    What our clients say

    Clients Reviews

    Mortgage news and advice

    Bridging Loan

    What Is a Bridging Loan and When Should I Get One?

    Sometimes, a mortgage isn’t the best way to raise money for a property. You might not even be able to get a mortgage on some properties either – and that’s where a bridging loan comes in.
    Can I get a mortgage as a contractor?

    Common Contractor Mortgage Questions Answered

    Can I get a mortgage as a contractor? Yes! Here’s the lowdown on this question and many more about contractor mortgages.
    Key worker mortgage teacher

    Mortgages for Key Workers: Are You Eligible?

    Mortgages for key workers offer special rates and deals only available to those providing a valuable service to their local, and wider, community. NHS workers, military defence staff, teachers, justice workers...
    IT contractor mortgage

    Getting a Mortgage as a Contractor

    Getting a mortgage as a contractor isn’t as hard as you may think. Here’s how you can find the best contractor mortgage deal.
    NHS mortgage

    How to Get a Mortgage as a Key Worker

    Key worker mortgage schemes help those in certain job roles to get onto the property ladder. Knowing where to look, and finding which schemes are available, is confusing. That’s why we’ve put together this quick guide to help you find the best mortgage deal as a key worker.

    Whole of market
    independent mortgage advice

    Here are some of the big – and small – mortgage lenders, and specialist mortgage providers, we work with to find you the best personalised deal.

    Get in touch

    Work with us how you choose: email, phone, Whatsapp, or face-to-face meetings. It’s up to you!

    Your personal mortgage broker will explain clearly the mortgage process and from a few questions about yourself, advise you on your options.

    Let us apply for you

    Your personal broker will structure your application the right way that guarantees you the best mortgage prisoner deal.

    One simple questionnaire is all it takes for us to complete your paperwork for you.

    Get the mortgage

    Your advisor handles the entire application process. Liaising with your lender, solicitor and estate agent to make sure your mortgage application progresses smoothly.

    All you need to do is accept the mortgage offer and celebrate!

    Your 3 steps to a remortgage

    Why Choose Us
    Back To Top