Mortgage prisoners paying £2,700 more a year after being hammered by rising interest rates

prisoners face soaring interest rates, with some paying up to 11 per cent, and are trapped because they cannot switch lenders.shows, their payments have increased by £2,719.20 since December 2021.

“The situation for mortgage prisoners is getting worse every single month due to the relentless rise in variable rates,” MP Seema Malhotra, co-chair of the All Party Parliamentary Group on Mortgage Prisoners, toldMortgage prisoners cannot switch because even if they kept up with payments without ever going into arrears over many years, they are considered too great a risk to take on by the lenders they apply to.

Some lenders charge much more than the 7.1 average. Among them are Virgin and Aldermore, which charge more than 8 per cent, and campaign groups say some mortgage prisoners pay over 11 per cent., states that there are 200,000 people who are mortgage prisoners. The London School Economics recently published a report saying the people affected “suffered financially, mentally, and physically for more than a decade”.

I wish it was only 2700 😦 I’m paying double that

Thanks for this article. I’m paying £4800 a month more than this time last year and at least £300 a month more for the past 10 years. Payrise a don’t even touch the increase and I have an excellent credit rating but cannot switch

Don't renters pay much more than owners in housing costs?

Mortgage prisoners face soaring interest rates, and are trapped because they cannot switch lenders. They are caught on standard variable rates and on average, analysis by i shows, their payments have increased by £2,719.20 since December 2021.

jilly284 FSCS in our experience ignored clear evidence that our Financial Adviser lied about our incomes in order to illegally transact an inappropriate mortgage and get his commission.FSC S lied to MPs and their own Board about us to try to justify themselves

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