FCA mortgage prisoners

Santander is supporting applications from borrowers who have been identified by the FCA as a mortgage prisoner and have received a letter from a third party administrator on behalf of the FCA. Mortgage prisoners are a group of borrowers identified by the FCA as not being able to switch to a new deal with their existing lender. Typically, these borrowers are with closed book lenders and those lenders not regulated by the FCA.

We have a dedicated team who can review and manage these cases if your client has received a mortgage prisoner letter. Please note that applications from mortgage prisoners will still be subject to an affordability assessment. 

Types of cases can we consider

  • Failed standard like-for-like remortgage affordability assessment/loan to income policy
  • Failed standard LTV policy
  • Light adverse credit performance outside of existing policy

Types of cases we do not consider

  • Current or recent (e.g. last 12 months) mortgage arrears
  • Failed affordability based on assessment against reversion rate1
  • Significant adverse (e.g. defaults and CCJs in last 3 years over £500)
  • Capital and interest loans over 90% LTV
  • Interest only loans over 70% LTV
  • Part and part loans over 85% LTV (max 70% LTV interest only)
  • No established interest only repayment vehicle
  • Cases with additional borrowing
  • Outside of other policy criteria e.g. credit scoring, age-related e.g. IO to maximum age 70, security or leasehold requirements.

1 Typically a higher level of affordability coverage will be required to allow for potential increases in base/reversion rates to ensure sustainability.

How to submit a mortgage prisoner application

  • Ensure that you have a copy of your client’s letter from the FCA's third party administrator, evidencing they've been identified as a mortgage prisoner
  • Check that the application meets the requirements for cases we will consider
  • Submit the AIP as normal
  • Once the AIP has been submitted, you must email mortgageprisonerexceptions@santander.co.uk providing a copy of our mortgage prisoner submission form including the AIP case reference.
  • Please do not include any personal data (e.g. names, postal address, email address that could identify your client) on the submission form or in any correspondence to the dedicated mortgage prisoner inbox.
  • Upon receipt of all the above case information we'll review the case and respond to you within 72 hours.