Martin Lewis is urging the UK Government to find "any and all solutions" to free mortgage prisoners following a new report by the London School of Economics and Political Science (LSE). The report, the third and final in a series, is funded by a total private donation of almost £60,000 by the consumer champion and commissioned by MoneySavingExpert (MSE).
Some mortgage prisoners have been trapped on high rates since the 2008 financial crisis, however, the report has proposed solutions to help borrowers eventually remortgage with active lenders. Borrowers entered into loans with lenders that subsequently failed and they have often been rejected when applying for cheaper mortgages because they do not meet toughened borrowing criteria brought in following the crisis.
Many have loans that were sold by the UK Government to ‘closed book’ inactive lenders, often investment companies that are not regulated by the Financial Conduct Authority (FCA) to lend new mortgages, making it difficult for them to move to cheaper rates.
