Economic Secretary to the Treasury, John Glen, says he is open to "an extension to the regulatory perimeter" to further help mortgage prisoners. Earlier this month, the FCA revealed that of the 250,000 mortgage prisoners identified, just 170,000 are up-to-date with payments and would be eligible to switch under new regulatory rules. The FCA admitted that of these 170,000, just 14,000 will be both likely to meet commercial lending criteria and stand to make a meaningful saving - just 5.6% of the 250,000 borrowers struggling to switch.
In a letter to the CEO of UK Finance, Stephen Jones, Glen said it is important to "closely monitor the impact of the recent rule changes, including the extent and pace of action by your members". Glen urged Jones to ensure that UK Finance members "move quickly to offer new deals to this group of eligible borrowers". He added: "In our meeting you committed to working with your members to better communicate to this group the deals that will be available to them and I look forward to seeing rapid progress. "I am open to considering an extension to the regulatory perimeter where the benefits to consumers and markets can be demonstrated, however it is important that we do not raise false hope for consumers by pursuing a change that does not end up helping them. "I am determined to enable remortgaging for those who are eligible under the FCA's rule change, meet the criteria for lending and would benefit from doing so. The FCA rule changes lifted the regulatory barriers. I now expect lenders to take the lead in making a real difference to this group of borrowers."