Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
Mortgage prisoners are homeowners stuck on high SVRs who cannot remortgage. FCA MCOB 11.9 (June 2022) allows modified affordability assessments for qualifying prisoners. Around 47,000 are estimated to be affected. Contact your servicer to check MCOB 11.9 eligibility.
What Is a Mortgage Prisoner and What Are Your FCA Rights?
Direct answer
What is a mortgage prisoner and what can I do under FCA rules?
A mortgage prisoner is homeowner current on payments but unable to remortgage because their closed book lender no longer offers new mortgages and they cannot pass modern affordability tests. FCA MCOB 11.9 (June 2022) introduced modified assessment rules allowing qualifying prisoners to switch without a full affordability test. Contact your servicer to check eligibility.
Confirm you meet MCOB 11.9 criteria
Up to date with payments, not borrowing more, not extending term, not first-time buyer.
Contact your servicer
Ask explicitly whether your loan is eligible for the MCOB 11.9 modified switching route.
Consult a specialist mortgage broker
Fee-free brokers who work with closed book mortgage holders can identify which active lenders apply modified assessment rules.
Get your current mortgage information
Outstanding balance, current rate, remaining term and payment history are needed for any new application.
Check mortgageprisoners.org.uk
Maintains a current list of participating lenders and support resources.
Related KT guides
Mortgage Prisoners and Consumer Duty: FCA Obligations Since July 2023
Since July 2023, FCA Consumer Duty (PRIN 12) adds a further obligation on all mortgage servicers -- including closed book administrators -- to act to deliver good outcomes for retail customers. For mortgage prisoners, this means servicers must not create unnecessary barriers to switching and must communicate clearly about available options including MCOB 11.9 modified assessment routes. The FCA's supervisory focus on Consumer Duty for closed book products (effective July 2024 for closed products) means closed book administrators face increased regulatory scrutiny of how they treat existing borrowers on high SVRs.
How to Find a Lender Accepting MCOB 11.9 Modified Assessments
As of June 2026, a small number of FCA-authorised lenders have opted into the MCOB 11.9 modified affordability assessment route for mortgage prisoners. The FCA does not publish a definitive list of participating lenders -- the list changes as lenders opt in or update their criteria. The most reliable route is through a specialist mortgage broker who works with closed book mortgage holders. Brokers such as those on the mortgageprisoners.org.uk recommended list have direct relationships with participating lenders and can assess whether any lender will consider a modified assessment application based on your specific loan details. Free debt advice organisations including Citizens Advice and StepChange also maintain updated guidance on mortgage prisoner options.
Frequently Asked Questions
What is a mortgage prisoner?
A mortgage prisoner is a homeowner who cannot remortgage despite being up to date with payments, because their mortgage is with a closed book lender that no longer offers new mortgages. They are stuck on a high SVR and cannot switch because they cannot pass modern affordability assessments under MCOB 11. The FCA estimates approximately 47,000 mortgage prisoners in the UK as of 2023.
What are the FCA rules to help mortgage prisoners?
The FCA introduced modified affordability assessment rules (MCOB 11.9) effective June 2022. Under these rules, lenders can waive the standard affordability assessment for customers who: are up to date with payments, are not borrowing more than their outstanding balance, are not extending the term, and are not first-time buyers.
Can any lender offer a mortgage to a prisoner under MCOB 11.9?
Only FCA-authorised lenders who have opted in to the modified assessment rules. Not all lenders participate. Contact your current servicer to check whether a modified assessment switching option is available.
What should I do if I think I am a mortgage prisoner?
Contact your current mortgage servicer and ask whether MCOB 11.9 modified affordability rules apply to your loan. Consult a fee-free mortgage broker who specialises in complex cases. Contact mortgageprisoners.org.uk for current information on available lenders.
Has there been any compensation for mortgage prisoners?
No government compensation schemes had been established as of June 2026. The FCA's 2021 remediation did not include compensation for historic losses from high SVR rates. Campaign groups continue to lobby for broader redress.
Primary sources
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