Although an industry-wide voluntary agreement was established in July last year to allow the 10,000 mortgage prisoners of active lenders to switch to a better deal, about 120,000 mortgage prisoners were still trapped on a higher interest rate with unauthorised firms and 20,000 mortgage prisoners are estimated to be stuck with inactive lenders.
The new rules will allow active lenders to use modified assessments for those trapped with unauthorised and inactive companies, potentially allowing them to switch, and force said firms to contact their consumers to inform them of the change.
The new rules will come into effect from today.
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