Mortgage prisoner: what it means, your options, and a simple plan to escape

If you’re a mortgage prisoner, it usually means you’re stuck paying a high rate (often a lender’s SVR) and you can’t easily switch to a cheaper deal, even though you’ve been paying on time. The good news: there are routes that may help, including the FCA’s  modified affordability assessment for some switchers.

At a glance

• You’re “trapped” when switching is hard, not when you’re behind on payments.
• The FCA created a modified affordability assessment option for some borrowers who are up to date and not borrowing more.
• Many people are in closed mortgage books / unregulated owners, but only a smaller group may get a meaningful saving from switching.
• A product transfer (new deal with the same lender) can sometimes be the simplest move if available.
• If switching is blocked, a broker can check the whole-of-market picture and help you write a clear mortgage prisoner letter to request the right review.

The Financial Conduct Authority does not regulate on Buy to Let Mortgages.

Your home may be repossessed if you do not keep up repayments on your mortgage. The article is updated as of Feb 18, 2026

What does “mortgage prisoner” mean?

A mortgage prisoner is someone who wants to move to a better mortgage deal but can’t, even though they’re trying to do the “right things”.

This often happens when:

• Your mortgage is in a closed book (no new deals offered), or owned by a firm that isn’t actively competing for new lending.
• You’re on a high SVR (Standard Variable RateThe interest rate charged by the lender that can vary over t...) after a deal ended, and it’s gone up over time.
• You don’t pass today’s affordability checks, even if you’ve paid your mortgage on time for years.

The FCA has published detailed work on this group, including how many borrowers sit in closed books and how many might be eligible to switch under its changes.

Broker tip: If you don’t know what rate you are on, check your latest statement. If it says “SVR” or “reversion rate”, that’s a common mortgage-prisoner starting point.

Help for mortgage prisoners: the routes that usually get checked first

Here’s the order-

1) Can you do a product transfer (rate switch) with your current lender?

A product transfer means switching to a new deal with the same lender. It’s often:

• faster than a full remortgageRefinancing an existing mortgage with a new mortgage.
• lighter on paperwork
• sometimes more flexible on affordability (depends on lender and situation)

But if your lender is inactive / closed book, there may be no new deals to switch onto.

2) Can you remortgage away using the modified affordability assessment?

The FCA’s Policy Statement PS19/27 allows lenders (they can choose) to use a modified affordability assessment in certain situations — the core idea is: if you’ve been paying your mortgage on time and you’re not borrowing more, the assessment can be more proportionate.

The FCA’s published summary includes the basic “shape” of who this is aimed at and shows the overall population context.

3) If switching doesn’t save money, can you improve the position instead?

Sometimes the issue isn’t “no lender will ever take you” — it’s “the saving is small” or “the case needs tidying”.

Typical “tidy-up” levers:

• reduce unsecured debt (even slightly)
• improve credit file accuracy
• build a clearer income story (especially for self-employed / variable income)
• check if term / repayment type changes would help affordability without increasing borrowing

Important: The FCA’s own analysis notes that many borrowers in these groups are already on relatively low rates, and only a smaller subset are likely to get a meaningful saving from switching.

Mortgage prisoner remortgage: what a lender usually checks

This is the practical bit. Even with help, lenders still check the basics.

The key jargon

• LTV (Loan-to-Value): your mortgage ÷ property value (roughly). Lower LTV usually helps.
• ERC (Early Repayment ChargeA fee charged by lenders if the borrower pays off the mortga...): a fee for leaving a deal early (often on fixed rates).
• Stress testing: lender tests if you could still pay if rates rose.
• DIP/AIP: “Decision/Agreement in Principle” — a soft yes before full application.
• Product transfer: switching deals with same lender (no new lender).

Broker tip: If you’re in a fixed rate with an ERC, we always check whether switching now actually saves money after fees. A cheaper rate doesn’t help if the exit cost wipes out the gain.

If you want a plain-English explainer of how lenders assess cases, our guide to what a mortgage underwriter does is useful background.

Modified affordability assessment: what it is (and what it isn’t)

The  modified affordability assessment (MAA) is not a “free pass”. It’s a regulatory option that can allow a simpler affordability approach in certain switching scenarios, especially when:

• you’re up to date with payments
• you’re not increasing borrowing (beyond certain fees)
• you’re switching to a deal on the same property

There have also been more recent FCA changes and ongoing work on simplifying parts of mortgage rules, including updates around the MAA in  PS25/11 and earlier consultation work in CP25/11.

Mortgage prisoner letter: a simple template you can actually use

A “mortgage prisoner letter” is just a clear written request to your lender/administrator asking them to confirm your options and, if relevant, to consider switching routes fairly.

Keep it short:

What to include

• Your mortgage account number
• Your current rate (SVR/fixed/tracker) and monthly payment
• A one-line summary: “I’m up to date and want a cheaper deal”
• Ask 3 direct questions:
• 1. “Do you offer any product transfer / new deal options to me?”
  2. “If not, can you confirm why and what switching routes you support?”
  3. “Can you confirm what fees/charges apply if I switch?”

If you’re on SVR, it’s worth reading our SVR explainer first so your letter uses the right wording.

Broker tip: Don’t write an angry essay. One page, facts only, clear questions — it gets better results.

UK mortgage market right now (February 2026)

Broadly, borrowers are watching interest rate expectations closely. Bank Rate was 3.75% after the Bank of England’s December 2025 decision, and sentiment can shift quickly as inflation and growth data change.

This can change quickly, so treat any “market vibe” as time-sensitive.

Common pitfalls (and how to avoid them)

Pitfall 1: Assuming “mortgage prisoner” means you’re in arrears

✅Avoid it: This term is about being unable to switch, often even while paying on time.

Pitfall 2: Chasing the lowest rate without checking total cost

✅ Avoid it: Always check ERCs + fees + how long you’ll keep the deal.

Pitfall 3: Applying to multiple lenders randomly

✅ Avoid it: Too many hard searches can hurt. Do a proper plan first (often via a broker).

Pitfall 4: Ignoring repayment type issues (interest-only)

✅ Avoid it: If you’re interest-only, lenders may want a credible repayment strategy. The FCA notes a high share of affected borrowers are interest-only or part interest-only.

Decision guide (general information, not personal advice)

• If you have a deal available with your existing lender → consider a product transfer first.
• If you’re up to date and not borrowing more → ask whether modified affordability assessment routes apply.
• If the saving is tiny after fees → consider staying put and improving affordability/credit first.
• If you need to raise funds but can’t remortgage → ask whether a second charge is appropriate (separate product and risks).
• If you’re unsure where you sit → get a broker to map options whole-of-market.

Key takeaways

• A mortgage prisoner is typically “stuck” even while paying on time.
• SVR is a common expensive default rate after a deal ends.
• The FCA introduced a modified affordability assessment option for certain switchers.
• Not everyone will get a big saving — FCA data suggests only a smaller subset may benefit meaningfully.
• A short, factual mortgage prisoner letter can help you get clear answers from your lender/administrator.

Next steps checklist

• ✅ Find your current rate type (SVR/fixed/tracker) and any ERC date.
• ✅ Gather 12 months mortgage statements + 3–6 months bank statementsA record of a borrower's financial transactions often requir....
• ✅ List all debts and monthly commitments (loans, cards, finance, childcare).
• ✅ Ask your lender (in writing) what deals they can offer.
• ✅ If you want whole-of-market options, speak to our team.