The finance watchdog has admitted that the number of mortgage prisoners across the UK may exceed previous estimates.
Mortgage prisoners are borrowers who took out high-interest home loans with lenders such as Northern Rock, which collapsed during the 2008 financial crash.
Trapped in a catch-22 situation thanks to mortgage lenders rules (see factbox below), they have been paying eye-watering interest rates of up to 9 per cent, in some cases for more than a decade.
Trapped: Mortgage prisoners took out high-interest loans pre-financial crisis and find it difficult to remortgage due to stricter affordability criteria, debt and negative equity
The Financial Conduct Authority has previously said that there are 250,000 mortgage prisoners, but the review will interrogate that figure.
Mortgage prisoners are trapped in loans they took out pre-financial crisis
MPs voted against an amendment to the Financial Services Bill which would have slashed interest rates and cut payments by up to £800 per month
Campaign group says MPs don t understand their situation and calls for government-backed loans like those being offered to first-time buyers
Treasury says it needs to collect more data on mortgage prisoners before it can come up with a solution, and will review current policies
Consumed by constant money worries : Mortgage prisoners tell of high interest rate woes ahead of debate on landmark law change
Mortgage prisoners became stuck in high-interest loans after their lenders collapsed during the 2008 financial crisis, and some pay rates of up to 9%
They say they have suffered poor mental health and family breakdowns
Scores have contacted us to share their stories and urge support for a new law that could see their monthly payments reduced by up to £800
Mortgage prisoners: The homeowners paying up to 9% interest dailymail.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailymail.co.uk Daily Mail and Mail on Sunday newspapers.