The London School of Economics and Political Science (LSE) has put forward a structured set of solutions that could be used to free mortgage prisoners as part of a report that is being shared with the Treasury and Financial Conduct Authority (FCA). The proposals include free comprehensive financial advice for all
in woodford green, east london, sharron clark has to cover the mortgage out ofjust her own income and her interest rate s leapt from just over 4% last year to almost 8% now. her opponents have nearly doubled from £868 to £1607. her opponents have nearly doubled from £868 to £1607. we re ust stuck with these people, h from £868 to £1607. we re ust stuck with these people, there s from £868 to £1607. we re just stuck with these people, there s nothing i with these people, there s nothing you can do. there is no way out, it is a hopeless situation. my health is a hopeless situation. my health is impacted terribly by all this. to have you here today is a strain, but i want people to know what they are doing, because i am not the only person they are doing this to. well. person they are doing this to. well, toda a person they are doing this to. well, today a report person they are doing this to. well, today a report by person they are doing this to. well, today a report by
hour, we expect a significant development. they re called mortgage prisoners homeowners who are trapped on expensive mortgage deals because they don t meet the criteria allowing them to switch to cheaper ones. with interest rates at their highest level in years, the situation is getting harder and harder for many people. now campaigners are urging the government to take urgent action to help them remortgage. our economics correspondent andy verity is here to explain. if you re worried about your monthly payments jumping when your mortgage deal expires, imagine if you were already trapped paying standard variable interest rates, twice as high as a competitive deal, and you couldn t remortgage or move onto a new deal with your existing lender because of something the government had done. that s what s happened to an estimated 200,000 people who took out regulated mortgages where the loan s high relative to the house price, with the likes of northern rock or bradford & bingley before th
government backed loans so borrowers can access new deals. it says the net cost to the government would be less than £350 million. less than £350 million. there is a suite of solutions less than £350 million. there is a suite of solutions the less than £350 million. there is a | suite of solutions the government could suite of solutions the government could pick suite of solutions the government could pick from, making sure these individuals could pick from, making sure these individuals have financial advice, underwriting the way the mortgages work, underwriting the way the mortgages work. to underwriting the way the mortgages work, to take the risk of new lenders work, to take the risk of new lenders to work, to take the risk of new lenders to offer these people cheaper lenders to offer these people cheaper rates. the solutions are complicated, but we hope, if done right, complicated, but we hope, if done right, following the report, many of these right, foll
The Co-operative Bank must pay redress to mortgage customers who have become distressed after facing 'unfair' interest rate increases, according to a group of MPs.