The government should “protect borrowers from being trapped on reversionary standard variable rates” and stop the mortgage prisoner cycle, according to one campaigner.
Appearing at a parliamentary briefing on the Mortgage Prisoner Action Group’s latest campaign launch, campaigner Jill Hume said the group is calling for legislative change to protect the homeowner.
She recounted a list of key reforms the group is pushing for, such as stopping any more sales to non-lenders.
“Residential mortgages should not be put in a profit driven game," she told the hearing.
The group is also calling for a “radical adaptation” to the affordability criteria and for a grandfather policy around historic interest-only mortgages.
The group also wants to see the establishment of a compensation scheme for mortgage prisoners, which Hume described as “critical” to address the financial haemorrhaging of those who have been overcharged for years.
She compared the mortgage prisoner issue to the similar scandal continuing to affect postmasters and asked: “Will it take a TV drama before action is taken?”
Personal stories
The briefing also featured the stories of two mortgage prisoners who spoke about their experiences and how it had affected their lives.
One speaker, Amanda Wilson, said in 2007 she bought her house with Northern Rock by putting down a 15 per cent deposit and entering into an interest only mortgage, as was suggested by her mortgage broker.
However, right now her rate is 9.29 per cent and her monthly payments equal £2,710.
She said this had a huge impact on her life: “I made the decision to become self-employed so that I could be there with my children but things didn’t work out that way.
“I had to work seven days a week for years on end. I’ve had to work weekends. We haven’t had a family holiday since 2010 and my Dad helped to pay for that.
“I can’t afford to have birthday parties for my children. My children miss out on so much and I feel incredibly guilty about that.”
Spencer Shackelton also shared his experience as a mortgage prisoner, saying that when he first became stuck on higher mortgage rates he “thought it was my fault” and so carried on paying.
However, upon discovering the UK MPAG, Shackleton discovered he was not alone.
“I found this group and realised there were so many other people like me and that it wasn’t my fault.
“I broke down in front of my wife and cried and said ‘It’s not us. It’s not our fault, it’s other people’s fault’.”
Additional voices
The extent of suffering felt by mortgage prisoners extends beyond Wilson and Shackelton as the group included the testimonies of those across the country.
These included: “My family’s experience has been financial hell.
“I have lost my partner and now I’m on constant medication for a severe mental illness, our lives have been ruined by the wrong decisions made by others in power.”
