Mortgages.scot

The plight of mortgage prisoners is well-known in the industry. I wrote an article on the subject previously, you can find it here.

The MP introducing the bill is West Dunbartonshire's Martin Docherty-Hughes.

The bill intends to enable some borrowers to switch to new mortgage arrangements, whether with the company their current mortgage or a new lender that allows a more flexible approach than the companies running the lenders many are stuck with who refuse to do anything for them.

Ending evictions for mortgage prisoners and lightening the burden they have carried over the years are also key objectives.

They are pushing mortgage prisoners further into debt when they are already paying way more than most is inexcusable, especially when there is no rational justification for the action. They must be helped to find a way back into the mainstream mortgage market.

It's tragic that yet another budget has passed without support for mortgage prisoners. The government is making it known that it is aware of their plight, but it must act, not just be aware. Mortgage prisoners have been subject to appalling treatment for over a decade at this point.

Some were forced into taking interest-only mortgages soon into a 25-year mortgage term and are now within a few years of that term ending. Many of those families will be forced to sell to repay the loan and will not have enough to buy a new home. Mainstream lenders are unlikely to give them a mortgage due to their age or history or arrears as a result of crippling payments that were no fault of their own.

Unfortunately, new bills in parliament don't move quickly. A second reading of the bill must take place and that is not until June 14th 2024.