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FAQ / Mortgage questions
Mortgage prisoner information

What is a mortgage prisoner?

The Financial Conduct Authority (FCA) defines a mortgage prisoner as someone who cannot switch to another product, or remortgage to a new lender, despite being up to date with their payments.

A mortgage prisoner is a customer trapped on an old mortgage product which does not offer the ability to switch to a cheaper rate. This may be due to new affordability rules that have been introduced since the original mortgage was taken out, meaning that a customer would no longer qualify for their original loan. It could also be because the customer’s circumstances have changed since they took out their mortgage, or because their current mortgage is with an inactive lender or firm not authorised for mortgage lending.

Am I a mortgage prisoner?

The FCA defines someone as a mortgage prisoner if:

  • They hold an existing regulated mortgage
  • They have not missed any payments within the past 12 months
  • They have no outstanding arrears or fees/charges on their account

Where can I go for more information?

For further information about the rule changes, the Money Advice Service has a section within its website dedicated to providing information for mortgage prisoners at www.moneyadviceservice.org.uk/en/articles/help-for-mortgage-prisoners

You may also wish to seek advice from an independent mortgage adviser as they will be able to advise whether switching to a new product is right for you. The FCA has information to help you find an independent financial adviser available on their website www.fca.org.uk/consumers/finding-adviser

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Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551