Santander starts taking mortgage prisoner applications

Santander starts taking mortgage prisoner applications

 

The Financial Conduct Authority (FCA) published guidance a year ago designed to allow lenders to support mortgage prisoners trapped with inactive or unregulated lenders.

They can use a modified affordability assessment where borrowers are up to date with their mortgage payments, do not want to borrow more, and want to remain at their current property.

Santander said its facility will be open to all registered intermediaries where a client has received a letter from a third-party administrator on behalf of the FCA identifying them as a mortgage prisoner.

 

It highlighted three scenarios where it would be able to consider cases:

 

And it also listed the types of cases where it would not be able to accept applications:

The lender said it has set up a dedicated team who can review and manage these cases if a client has received a mortgage prisoner letter.

Once an application in principle (AIP) has been submitted that meets the criteria, advisers must contact the mortgage prisoner exceptions team with the AIP case reference.

The team will then review the case and respond within 72 hours.

A Santander spokeswoman said: “We’re pleased to be supporting mortgage prisoners by working with the industry to open up the market, and help more homeowners secure a lower mortgage rate.”

West Bromwich Building Society was one of the first lenders to adopt the modified affordability measures, NatWest and Halifax have since followed suit.