Further to the FCA’s recent change to the rules around mortgage prisoners, they are now looking for mortgage intermediaries to sign up to become part of the new journey these customers can go through.
The FCA see the customer journey from 1st December 2020, looking like this:-
- Mortgage administrators are required to contact eligible customers by 1 December 2020. Typically, this will involve sending out letters that encourage customers to seek more information from the Money Advice Service.
- Using information that is to be published on the Money Advice Service website, these customers will be able to assess any options available to them.
- Customers who may be able to remortgage will then be able to access a list of mortgage intermediaries who will work with them and provide the support that they may need.
- This list is aimed at helping customers find an intermediary and is not restrictive. Customers can, of course, approach mortgage intermediaries not on this list.
- The list will also allow lenders to see which intermediaries need to be kept up-to-date with any bespoke offerings for mortgage prisoners and any changes to their criteria or underwriting.
As a result, the FCA are looking to hear from mortgage intermediaries to sign up to be part of the list mentioned above.
To be eligible the intermediaries need to:-
- be able to access mortgage options that represent the whole of the market
- be able to advise on later life options or have a relevant referral route (as outlined below)
- be able to advise on debt consolidation or have a relevant referral route (as outlined below)
- not charge a fee until an application is submitted to a lender (the fee may be added to the loan)
- collect and share with us relevant data on the support they have provided.
For more information on how to be involved, visit the FCA’s webpage.