Are You a Mortgage Prisoner? Here’s What You Need to Know
In today’s economic climate, with rising interest rates and increasingly strict lending criteria, many homeowners across the UK are feeling stuck — not just financially, but emotionally too. If you’re struggling to remortgage or feel trapped on a higher-than-average rate, you might be what’s commonly referred to as a mortgage prisoner.
At MAPIO Financial, we speak to people every week who feel like they’re doing everything right — keeping up with repayments, managing their finances — yet they’re still unable to move to a better mortgage deal. If that sounds familiar, read on.
What Is a Mortgage Prisoner?
A mortgage prisoner is someone who is up-to-date with their mortgage payments but can’t switch to a better deal because they no longer meet today’s stricter lender criteria. This may be due to the type of mortgage product you originally took out, changes in your personal circumstances, or wider shifts in the lending landscape since your mortgage began.
You could be affected if:
- Interest rates have risen significantly since you took out your mortgage
- You’ve experienced changes in employment or income (e.g. job loss, reduced hours, or a move to self-employment)
- Household costs have increased, reducing your disposable income
- Your property value has fallen, lowering your equity
In many cases, homeowners are stuck paying more than necessary — even though they’ve never missed a payment.
Why Can’t I Remortgage?
For many mortgage prisoners, the problem isn’t the ability to pay — it’s passing the affordability checks required by new lenders.
Since the 2008 financial crisis, the Financial Conduct Authority (FCA) introduced tougher rules to ensure lending was responsible. While these measures protect borrowers from taking on unaffordable debt, they’ve had an unfortunate side effect: many people who can afford their current payments don’t qualify under today’s rules to switch to a better deal.
This is especially common among those with:
- High loan-to-value (LTV) mortgages
- Self-employment or irregular income
- Credit issues or lower credit scores
- Interest-only or legacy mortgage products
What Help Is Available?
The good news is the FCA has recognised the issue. In recent years, they’ve encouraged lenders to offer a modified affordability assessment for mortgage prisoners. This allows eligible borrowers to remortgage at a more affordable rate — even if they wouldn’t normally pass the standard stress tests.
That said, these schemes are often limited, and not all lenders take part. This is where an experienced mortgage broker like MAPIO Financial can make a real difference. We know which lenders are more flexible, and we can try and find you the right solution.
What Can You Do If You’re a Mortgage Prisoner?
If you think you may be stuck in your current mortgage, here are some steps you can take:
- Speak to a mortgage broker: At MAPIO Financial, we can assess your individual circumstances and explore tailored options to suit you.
- Request a recent mortgage statement: Understanding your rate, balance, and term is essential for comparison.
- Check your credit file: Errors or outdated information can affect your eligibility.
- Review your monthly budget: Lenders need to see how your current expenses compare with your income.
- Stay informed: The mortgage market changes regularly. Even if you weren’t eligible last year, that may no longer be the case today.
You’re Not Alone — And There May Be a Way Forward
Being a mortgage prisoner can feel incredibly frustrating — especially when you’ve always made your payments on time. But there are solutions, and you don’t have to face this alone.
At MAPIO Financial, we offer no-obligation consultations to help review your current mortgage and explore all available options. Whether you’re looking to lower your monthly repayments, consolidate debts, or simply escape a high-interest deal, it all starts with a conversation.
Get in touch today
Think carefully before securing other debts against your home. Consolidating debt may reduce your outgoings now, but you may end up paying more overall. Your home may be repossessed if you do not keep up repayments on your mortgage. The information contained within was correct at the time of publication but is subject to change. 12th June 2025