The FCA changed its affordability rules at the end of last month to remove barriers preventing mortgage prisoners from moving onto better cheaper deals.
The Building Societies Association (BSA) has confirmed it is one of the bodies working with the Financial Conduct Authority (FCA) to help mortgage prisoners find out if they are eligible for a new mortgage.
Earlier this week UK Finance said it is working with the FCA for the same purpose.
This follows the FCA’s rule change at the end of October allowinglenders to use a more proportionate affordability assessment for customers who meet certain criteria. This includes being up-to-date with payments and not looking to move house.
Harinder Chohan, policy manager at the BSA, said: “The FCA has now published its policy statement which allows the use of a modified affordability approach.
“The BSA has been working closely with the FCA and others through the Implementation Group and the focus of this group is now firmly on effective communication with mortgage prisoners - in particular through the design of a customer journey that will ensure these borrowers get the right answer and support as quickly as possible.
“The FCA has conducted research to find out more about the characteristics of customers who have mortgages held with unregulated entities.
“We urge them to be transparent with this information as soon as possible.”
