In recent years, the term “mortgage prisoners” has become all too familiar in the UK housing market. But what exactly are mortgage prisoners, and why is this issue becoming a growing concern?
A mortgage prisoner has become trapped in their existing mortgage deal. These individuals cannot switch to a better contract, even though they're up to date with their payments. Typically, this is because they're with a lender who no longer lends; they have negative equity and may have been in arrears previously. It's a complex issue influenced by economic conditions, government policies, and the regulatory environment.
In this white paper, we'll highlight the 'perfect storm' of external factors that created the environment for mortgage prisoners. We'll evaluate the pros and cons of historic and current interventions, and crucially we'll explore some novel approaches and innovative solutions to support the sizeable minority of people affected.
In this white paper you'll discover:
Understanding mortgage prisoners
A sizeable minority
A chain reaction
The regulatory burden
The pandemic effect
Interventions, well intended but are they enough?
A ticking time bomb
Short term solutions for long term problems
A novel approach
The path to liberation
