At the same time, the government and the European Union have been consulting on prudential controls, including loan-to-value limits.
The challenge is not new. It centres on whether it is possible to operate a regime that prevents excessive risk taking while at the same time providing an appropriate safety net for those who find themselves in the wrong place at the wrong time?
The final MMR rules have improved the situation for existing borrowers by making it less complex for lenders to provide appropriate ongoing access to appropriate products. But, at the end of the day, lenders will continue to have the option as to whether they choose to help customers or not.
Nationwide, for example, will allow existing customers of good quality to move where there is a sound reason – even if they are in negative equity.
While some mortgage prisoners will be trapped through their circumstances, many have had – and continue to have – options to improve their position.
With house prices broadly stable across the country, the equity that borrowers build up in their homes is being largely delivered through capital repayments rather than capital growth.
Those with repayment mortgages and those who have maintained payment levels are now finding themselves with increasingly attractive options in addition to their lender’s SVR.
While competition at higher LTVs is increasing, gaps between LTV rates remain significant. It means that for many customers, a little overpaying (particularly if it is often) can over time lead to quite a lot of saving on their mortgage rate.
Andrew Baddeley-Chappell is head of mortgage strategy and policy at Nationwide
