Martin Lewis urges MPs to free mortgage prisoners, warning coronavirus is ready to lure much more households
So-called mortgage prisoners are homeowners who are unable to remortgage to a cheaper deal with another lender because they don’t meet strict borrowing criteria brought in after the 2008 financial crash – even though they’re generally keeping up with repayments and would often be paying less if they switched.
Martin and MoneySavingExpert.com, which he founded and is the chair of, have been fighting the corner of mortgage prisoners for years, and Martin recently funded a report by the London School of Economics (LSE) putting forward practical policy solutions to help.
He explained to the Treasury Committee: “Respective governments have sold these loans to professional debt buyers that don’t offer mortgages, and left these people with these types of mortgages that have been too expensive and crippled their finances and destroyed their wellbeing.”
As well as reiterating his call for the Government to act – and release data that would help LSE to work out fully-costed policy solutions – Martin highlighted the danger that more “mortgage prisoners” could be created as a result of the coronavirus pandemic.
Here’s what he told the Committee: