Skip to main content

Press comment: Treasury issues three line whip on mortgage lenders

28 January 2020

If you’re covering the letter from John Glen, Economic Secretary to the Treasury, to Stephen Jones, Chief Executive Officer of UK Finance on mortgage prisoners please see the following comment from Gemma Harle, managing director of Quilter’s mortgage network:

"The door to many lenders has been closed for many of those who took out a mortgage when the criteria was more straightforward. And the consequences can be substantial.

"The letter from John Glen today is a sign that the Treasury has issued a three line whip to the lending community to offer mortgages to mortgage prisoners. The Financial Conduct Authority introduced new rules around mortgage affordability to help tens of thousands of these customers but this still requires the lenders to actually participate.

"This also applies pressure on intermediaries to offer advice to these customers, an element which is crucial. Under the FCA rules a customer is deemed as affordable if the new monthly payment is less than they are currently paying. However, when an adviser first speaks to a customer and confirms income and outgoings as part of the fact find it may look unaffordable and so it is up to the adviser to work with the client and the lender to ensure the client is getting the best mortgage possible."

Kathleen Gallagher

External Communications Manager

Related Articles

Budget cancelled as Sunak opts to delay tough choices

If you are covering the news that the Autumn Budget has been cancelled, please see the following commentary from Rachael Griffin, tax and financial planning expert at Quilter:

Published 1 day ago

Contentious triple lock survives Covid-cull

If you are covering reports that the government will maintain the triple lock to uprate state pension income in 2021/22, please see the following comment from Ian Browne, pensions expert at Quilter:

Published 1 day ago