Speaking during a Commons backbench business debate, Martin Whitfield MP has highlighted the plight of local “mortgage prisoners” and urged the Government to take action to help them.
The term mortgage prisoners has been applied to those who have suffered from the practice of selling mortgages and unregulated commercial loans to unregulated funds.
They are the people who are trapped with expensive mortgages and unable to remortgage to get a better deal. The rules say that they cannot afford payments on a mortgage of, say, 2% so they are forced to continue with a mortgage of 5% or more.
Around 200,000 people across the UK are in this situation with many facing constant financial difficulties and hardships. Many of the original mortgage prisoners had their mortgage with Northern Rock or Bradford & Bingley.
The debate, led by the MP for Dover, saw Members from all sides of the House urge the Treasury and the Bank of England to take appropriate action to help their constituents escape from the mortgages they have been trapped in.
Martin Whitfield MP said:
“It is estimated that there are between 300 and 400 people in every constituency across the UK who can be considered mortgage prisoners. This can have a debilitating impact on every aspect of their lives, leaving many with huge financial struggles.
“I welcome the work that has been undertaken on this issue by various colleagues – it has been a genuine cross-party effort. Now the Treasury and the Bank of England must urgently take all possible measures to ensure that mortgage prisoners are given access to new deals and fixed interest rates, and that banks cease discriminating against them.”
Read the full debate here www.theyworkforyou.com/debates/?id=2019-06-06a.346.0