Trouble ahead for homeowners when they decide to switch mortgages

There could be trouble ahead for maybe 40% of homeowners if/when they decide to switch mortgages – becoming known as ‘mortgage prisoners’.

HouseKeys50If this includes you, it is likely that, since you started your current mortgage, lenders have started more strictly applying application checks.

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

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