Your Mortgage Was Sold to a Fund. Can You Switch Out?
8 April 2026 · Mary Molloy Solicitors
Borrowers whose loans were sold in the great deleveraging often assume the sale marked them as unswitchable. Frequently the opposite is true: many sold loans belonged to borrowers whose difficulties are years behind them, and whose current record would pass any lender's tests. Meanwhile funds do not compete on rates — making these borrowers the biggest winners from switching.
What the sale did and did not change
The sale transferred the loan's ownership, not your protections: the Consumer Protection Code and the Code of Conduct on Mortgage Arrears apply through the regulated credit servicer that manages the loan. What the sale did change is the commercial relationship — funds run off loan books rather than competing for customers, so retention offers and rate cuts are not part of their model. If you want a market rate, you switch.
What a new lender actually assesses
Not the fact of the sale — your record. The Central Credit Register shows recent years of payment performance, and mainstream lenders want a sustained clean period, with restructured arrangements assessed on their own terms. Get your own CCR report (free) before applying: it tells you exactly what the underwriter will see and whether the application is ripe or premature.
The legal wrinkle on the way out
On the conveyancing side, a sold loan adds one task: the chain of title to the mortgage — from original lender through the sale to the current owner — must be properly reflected so that redemption is paid to, and the release comes from, the entity actually entitled. That is our work, not yours, but it is a reason sold-loan switches benefit from a solicitor who has handled them before.
Read more in our main guide: Remortgaging With an Arrears History or Negative Equity · or back to the blog.
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