To Another Lender
In 2020 the Financial Conduct Authority (FCA) implemented new rules and guidance to help customers of lenders which, like Rosolite Mortgages do not offer new mortgage deals.
The new rules are intended to make it easier for some customers to remortgage and access new mortgage deals with other lenders through relaxing and modifying some of the affordability tests that lenders are required to apply. This is known as a "modified affordability assessment".
The rule change is specifically intended to help customers whose mortgage deals have 'reverted' to a lender's standard rate, such as a Standard Variable Rate and have been able to maintain their mortgage payments, but who might have previously been unable to access new and cheaper deals from other lenders. These customers are sometimes referred to as "mortgage prisoners".
Why did I receive a letter about this change?
The rules required us to write to our customers who the FCA believes could benefit from the new, modified affordability assessment, by 15 January 2021.
In October/November 2020, we wrote to customers who met the following criteria (set by the FCA), following a detailed review of our customer records in late September 2020:
- They have a mortgage product, which does not have a consent-to-let in place and is neither a Lifetime Mortgage nor a buy-to-let mortgage;
- They are paying a ‘reversionary' rate of interest (such as an SVR), following a deal period (such as a fixed rate or an initial cheaper period) which has come to an end; and
- They are not behind with their mortgage payments (and have not been behind at any point within the last 12 months).
Why have I not received a letter about this change?
If we haven't sent you a letter about this rule change, it will be because you did not meet one or more of the above criteria.
However, you may still find the information on this page useful if you are considering re-mortgaging to a new lender; in particular the links to independent third parties that can provide advice and support.
How can I find out more?
For more information about mortgage prisoners, we recommend you visit the dedicated Money Advice Service (MAS) web-page, which features a remortgage questionnaire. Their site also includes information about a panel of specialist mortgage brokers who might be able to help you. MAS also has its own dedicated team of telephone advisers who can answer your questions and help you to assess the options available to you. Or you can call them on 0800 138 7777 (England) or 0800 138 0555 (Wales).
You might also find the following information useful.
Why have the rules changed?
The FCA has introduced new rules and guidance that allows lenders to use revised criteria when they are assessing whether a potential customer can afford a new mortgage deal. As a result, certain borrowers may now find it easier to remortgage with a different lender (subject to lender's individual criteria).
What have the FCA asked lenders to do?
Lenders, including Rosolite Mortgages, were required to review their mortgage customers' accounts to identify those who met the criteria set out above and write to these customers by 15 January 2021.
These letters explain the possibility of moving mortgage under the new rules and signpost customers to free and independent sources of advice, including the Money Advice Service. Visit their website or you can call them on 0800 138 7777 (England) or 0800 138 0555 (Wales) for more information.
I have/haven't received a letter from you – why is this?
If you have not received a letter about the rule change, then you did not meet the criteria to be sent a letter set by the FCA's rules. But you can still explore your options. The information and links on this page may help you get started.
Will taking a Covid-19 Payment Holiday count against me?
FCA rules mean that you shouldn't be considered ineligible for a mortgage deal with another lender solely because you have taken a Covid-19 Payment Holiday. However, other factors might impact your eligibility, including your individual circumstances and/or other lenders' creditworthiness and affordability criteria. To understand more and get advice on your individual situation, it is best to visit the MAS website and/or contact an independent mortgage broker.
What if I have an Interest Only mortgage?
The new rules apply equally to those with Interest Only mortgages. To understand more and get advice on your individual situation, it is best to visit the MAS website and/or contact an independent mortgage broker.
What if I have a Together Loan?
The new rules do allow lenders to re-mortgage "linked borrowing" like Together loans – but this will be subject to their eligibility criteria.
You should be aware that, depending on your terms and conditions, the interest rate on your Together Loan could increase if you pay off or move the mortgage element, but leave the unsecured loan in place with us. If you are unsure, it is important you take advice on this from your mortgage broker / adviser.
I want to remortgage elsewhere – where do I start?
To find out more, visit the MAS website and complete their simple questionnaire. It should only take five minutes to complete and it will also tell you who to contact for further advice.
At the end of the questionnaire you will be given an indication of whether you may be able to get a cheaper or more suitable mortgage with another lender, and where you can get further advice on the options that may be available to you.
To help you complete this questionnaire it would be useful to have your latest annual mortgage statement to hand.
How else can I contact the Money Advice Service (MAS)?
If you prefer to deal with MAS by phone, you can call them on their Freephone numbers:
0800 138 7777
0800 138 0555
Can Rosolite Mortgages give me mortgage advice?
No, but the MAS website will tell you who to speak to for more advice and options.
How can I get an up-to-date balance or redemption statement?
Where can I find free, confidential and independent advice?
If you are worried about anything else relating to your mortgage, it's important to seek help as soon as possible. You may want to discuss your situation with a professional adviser, such as a debt counsellor or a lawyer. To find free, confidential and impartial advice visit our Help page.