So-called mortgage prisoners are householders who’re unable to remortgage to a less expensive cope with one other lender as a result of they do not meet strict borrowing standards introduced in after the 2008 monetary crash – though they’re typically maintaining with repayments and would typically be paying much less in the event that they switched.
Martin and MoneySavingExpert.com, which he based and is the chair of, have been combating the nook of mortgage prisoners for years, and Martin lately funded a report the London College of Economics (LSE) placing ahead sensible coverage options to assist.
He defined to the Treasury Committee: “Respective governments have offered these loans to skilled debt patrons that do not provide mortgages, and left these individuals with some of these mortgages which have been too costly and crippled their funds and destroyed their wellbeing.”
In addition to reiterating his name for the Authorities to behave – and launch information that may assist LSE to work out fully-costed coverage options – Martin highlighted the hazard that extra “mortgage prisoners” might be created on account of the coronavirus pandemic.
Here is what he advised the Committee: