Homeowners to become mortgage prisoners, says Policis

As many as one in five homeowners could become mortgage prisoners if new lending rules are introduced, new research has suggested.

If the Financial Services Authority presses ahead with tough affordability rules, around 19 per cent of current borrowers would be prevented from moving or re-mortgaging .

Furthermore, 30 per cent of people would see a reduction in the amount they could borrow, the economic and social research consultancy Policis claimed.

Within the first year of the rules being introduced, around 483,000 homeowners looking to move and renters wanting to buy a property would be affected, Policis said.

Meanwhile, Obligo, a next-generation provider of financial services to estate agents, recently found that 31 per cent of estate agents are either dissatisfied or very dissatisfied with the financial services provider that takes care of their clients? mortgage arrangements .

Just over half (54 per cent) of the 300 estate agency firms it surveyed said the service they received was average.

Indeed, only 15 per cent said they were satisfied or very satisfied with their existing mortgage arrangements.