'My monthly payment in December 2021 was £621, today it is £1269. My salary per month after tax is £1,036.'
"I feel hopeless, like there is no end in sight and feel there will be no other outcome than losing my home, where all of my children have been born, because of companies charging more than 8 per cent to 9 per cent in interest rates and crippling people through sheer greed."
Mortgage prisoners have been trapped on high rates since the 2008 financial crisis. Many have loans that were sold by the state to 'closed book' inactive lenders, which are largely investment companies that are not regulated to lend new mortgages, making it difficult for them to move to cheaper rates.
In March, a report, which was shared with the Treasury and the Financial Conduct Authority, put forward costed solutions to the “horror” of the situation facing mortgage prisoners. The report by the London School of Economics and Political Science was funded by a donation of almost £60,000 by consumer champion, and commissioned by MoneySavingExpert. The report concluded that prisoners have suffered financially, mentally, and physically for more than a decade.
Groups representing mortgage prisoners have told MSE that some have even sadly taken their own lives. The report concludes the Government has made £2.4bn from the sale of these loans. The LSE report has proposed solutions that would help prisoners eventually remortgage with active lenders. These include free comprehensive financial advice for all prisoners and interest-free equity loans to clear the unsecured element of Northern Rock's 'Together' loans.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Love Island's Ruchee admits she turned down show in 2021 after being scoutedBeautician Ruchee Gurung, 24, from Sutton, is hoping to find love in the Love Island villa this summer after previously turning the ITV2 dating show down in 2021
Read more »
Johnson claims spies told him not to turn on old phone containing pre-May 2021 WhatsAppsThe former prime minister has written to the Covid inquiry chair offering to hand over his notebooks and WhatsApp messages to her team directly
Read more »
Haitian president's assassination: Businessman gets life in prison over involvement in 2021 killingJovenel Moise, 53, was assassinated in July 2021 when intruders broke into his private residence in Port-au-Prince.
Read more »
Stephen Barriskill: Man pleads guilty to Portadown murderConnor Lawrence McNeill receives life sentence for the killing in County Armagh, in 2021.
Read more »
'Gay Glasgow Peaky Blinders': River City star on new play about 'forgotten' city gangIN the 1920s, Glasgow’s Broomielaw was ruled by a little-remembered gang of gay men called the White Hats.
Read more »