There could be trouble ahead for maybe 40% of homeowners if/when they decide to switch mortgages – becoming known as ‘mortgage prisoners’.
So, if your current ‘deal’ comes to an end and you need to replace it to avoid paying a much higher standard rate you may find it somewhat more difficult, even if your repayments have been made on time and you have a clean credit record.
The rules, imposed a year ago by the Financial Conduct Authority, require lenders to take a detailed look at bank statements.
Some have been scrutinising the cost of gym memberships, milk bills, childcare and pension contributions, creating a trap for home movers.
Also on the danger list are owners with interest-only mortgages, the self-employed and people who are deemed too old to borrow.
Read the BBC article HERE