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<p>The Government remains committed to supporting these borrowers and has worked with
the FCA to implement rule changes to its mortgage lending rules, removing the regulatory
barrier that prevented some customers, who otherwise may have been able to switch,
from accessing new products. The new rules should allow customers to switch to an
active lender as long as they meet the lenders’ risk appetite and meet certain criteria,
such as not looking to borrow more. Lenders have now started contacting borrowers
who have been struggling to switch with options specifically designed for them, and
I hope to see even more options from active lenders over the coming months.</p><p>
</p><p>Some customers may not be eligible to access new mortgage products in line
with the adapted affordability assessment. This is why the FCA recently confirmed
additional options to support borrowers, including making intragroup switching easier
and extending interest-only payments, recognising the impact of Covid-19 on borrowers.
These modified rules came into force on 23 October 2020.</p><p> </p><p>Moreover, on
14 September, the Money and Pensions Service (MaPS) launched online information and
a dedicated phone service (accessible via MaPS’ main contact number) as a key source
of information and advice for borrowers with inactive lenders, including signposting
to specific brokers that will be able to help.</p><p><strong> </strong></p><p>The
Government continues to work with the mortgage lending sector to ensure support is
available for consumers.</p><p> </p><p>The FCA also recently noted that firms should
be reviewing their variable rates to ensure they adhere to regulations regarding the
fair treatment of consumers. The full statement can be found here: <a href="https://www.fca.org.uk/news/statements/statement-mortgage-prisoners"
target="_blank">https://www.fca.org.uk/news/statements/statement-mortgage-prisoners</a></p><p>
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