As reported yesterday, the 800-strong campaign group fears Treasury plans to sell the next mortgage book to companies that are not active market lenders “will create more mortgage prisoners, locking them into unfair rates.”
Mortgage Solutions put the group’s concerns to UKAR which responded:
“When selling assets, a key consideration in selecting the successful bidder is the continued fair treatment of customers. There are no changes to the Terms and Conditions of loans that are sold.
“We include protections in sales agreements, including adherence to the Financial Conduct Authority’s (FCA) principles of Treating Customers Fairly and the continuation of existing policies for any customers in or entering arrears. We also require that buyers are either regulated by the FCA or have contact with an FCA regulated mortgage servicer.
“We understand that some customers may have limited options, particularly due to tightening of criteria post the implementation of the Mortgage Market Review and Mortgage Credit Directive. This is an industry-wide issue, not specific to UKAR. We understand that it is difficult and stressful for customers who find themselves in this situation.
“As a result of state aid restrictions, Bradford and Bingley and NRAM are inactive lenders and are unable to offer new deals to customers. Selling assets to inactive lenders does not change the position for those customers or impact a customer’s ability to remortgage elsewhere.”
UK Mortgage Prisoners has called for the remaining mortgages to be sold to an active lender which would allow customers to transfer to lower rate products.
When asked why its statement failed to address this concern, UKAR said it had nothing more to add.