Mortgage prisoners are those who are unable to leave current lenders due to circumstances deemed out of their control. This could be as a result of a lender becoming inactive or unable to provide new products. The situation escalated for many people following the financial crisis of 2008 where affordability and borrowing criteria were toughened.
It left many trapped with significantly higher rates and struggling to meet their monthly payments.
It is estimated that a quarter of a million people are currently deemed mortgage prisoners, meaning the situation has been ongoing for over a decade.
Highlighting the plight many people are currently facing, the topic of mortgage prisoners was discussed this evening on GB News.
Michelle Dewberry, a businesswoman and GB News presenter, spoke to Rachel Neale, lead campaigner for UK Mortgage Prisoners’.
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“But we are now in a position where there will be thousands more who could be made homeless on interest-only mortgages and people who cannot pass affordability.”
Ms Neale urged action on the matter similar to what has been seen for first-time buyers stepping up onto the property ladder.
The Government has recently launched a scheme to offer more 95 percent mortgages to those purchasing property for the first time.
But for Ms Neale, equivalent support is needed for those who have been trapped in older, and often unaffordable deals.
She added: “Government has put us in this position, and they are the ones who need to remove us from it.
“We cannot have a situation where we continue on for years and years with people losing their homes, left in poverty and children not having the correct upbringing because their parents are having to pay ridiculous amounts of money.
“And all the time, we bailed out the banks as the collateral and it cannot continue on.
“We should’ve been protected and we weren’t. John Glen, the Financial Conduct Authority and Rishi Sunak all need to really do something about it.”
Also appearing on the programme was Vanessa Bampton, a mortgage prisoner who explained how a poor deal had affected her life.
She continued: “It has had a huge impact on me. When the children were younger, it was difficult because there were things we couldn’t afford.
“But it was just day to day living, paying bills and being able to have enough for grocery shopping – it has massively impacted us and our young family.
“Our children are older now and we’ve changed our situation, but it was gruesome – it really was.
“I would like to see preventative measures for future young buyers so that this kind of thing won’t happen again.”
The situation is ongoing for the group, but those who are impacted are encouraged to speak to a mortgage adviser about the matter.
Some may also be able to use remortgaging eligibility tools to see if they could be accepted under new rules.
Express.co.uk has contacted HM Treasury for comment on the matter.