The financial regulator has called on lenders to rescue tens of thousands of borrowers “trapped” in poor-value mortgages and has warned that it may step in if they fail to do so.
The Financial Conduct Authority had identified about 150,000 “mortgage prisoners” this year, who had taken out a loan before tougher rules left them unable to meet strict affordability tests to remortgage more cheaply.
The industry announced a so-called voluntary agreement in July to allow customers of active lenders to switch if they met certain conditions.
