Lender NatWest has recently announced that it has launched a brand new hub aimed at mortgage advisors, which will feature a less stringent affordability assessment for mortgage prisoners.
This hub is for use by advisors who are handling clients classified as “mortgage prisoners” – meaning people trapped by an existing mortgage loan due to changed financial circumstances and unable to switch to a more affordable remortgage deal. The focal point of this hub is a new affordability calculator that will factor in the customer’s track record when it comes to repaying their current mortgage.
According to Mortgage Solutions, the bank put a statement on its site to confirm the launch, in which it says that:
“We’re proud to be helping our customers and communities by supporting mortgage prisoners by providing a more suitable and proportionate affordability assessment for these customers from the 30th September 2020.”
Should the customer pass this new check, once their advisor has entered all of the relevant information, they will be able to apply for one of the NatWest range of standard remortgage products.
Currently, the Financial Conduct Authority (FCA) has indicated that something in the region of 140,000 borrowers can be classed as mortgage prisoners, so a relaxing of the rules by the NatWest is likely to be welcomed both by them and their advisors.
Any CeMAP mortgage advisor will be delighted by this, as it will let them seek a better deal for clients whose situation has changed, and it is to be hoped that other lenders will follow suit.
