The regulator says it is looking for intermediaries who will help mortgage prisoners to identify and move to an active lender, where this is possible, or signpost them to additional support such as debt advice.

Research published by the FCA in January showed that around 170,000 borrowers, with mortgages in closed books or owned by unregulated entities, were up-to-date with payments and would be eligible to switch mortgages because of new rules allowing lenders to assess affordability based on a borrower’s track record of making mortgage payments.

Lenders may also offer other forms of flexibility that could help these borrowers remortgage. The regulator previously estimated that around 14,000 borrowers should be both likely to meet firms’ commercial lending criteria and stand to make a meaningful saving.

“Mortgage intermediaries have a key role to play in supporting the customer journey, from borrowers first learning of the option to switch, to finally being able to apply for a new mortgage”, the regulator says.

Mortgage administrators are required to contact eligible customers by 1 December 2020. Typically, this will involve sending out letters that encourage customers to seek more information from the Money Advice Service provided by the Money and Pensions Service.

Using information that is to be published on the Money Advice Service website, these customers will be able to assess any options available to them.

Customers who may be able to remortgage will then be able to access a list of mortgage intermediaries who will work with them and provide the support that they may need.

Customers can also approach mortgage intermediaries not on this list.

The list will also allow lenders to see which intermediaries need to be kept up-to-date with any bespoke offerings for mortgage prisoners and any changes to their criteria or underwriting.

Full details on who can apply to be on the list, how data is collected and how to be added or removed from the list is available via the FCA website here.