In its latest update, the FCA acknowledged that Covid-19 has meant that lenders have not been able to offer switching options for mortgage prisoners as quickly as anticipated.
FCA rules require administrators and inactive lenders to write to customers who may be eligible to let them know that they may be able to switch their mortgage. Some firms have already begun to issue such communications but the FCA has noted that the pandemic has caused delays.
As a result, and to help firms manage the operational challenge, the FCA has extended the window for firms to contact eligible customers about switching options by 6 weeks, to 15 January 2021. The FCA hopes this will ensure better outcomes for mortgage prisoners.