Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will take steps to support mortgage prisoners.

This Government understands the challenges that mortgage prisoners face and will work with regulators and the industry to ensure that this issue is properly considered.

There are significant measures in place to protect vulnerable mortgage borrowers across the mortgage market, including mortgage prisoners. Financial Conduct Authority (FCA) rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. Closed book lenders must also comply with the FCA’s Consumer Duty, which ensures firms prioritise fair treatment and good outcomes for their customers.

The Government also has a number of measures in place to help people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit; the Housing Loss Prevention Advice Service (HLPAS); and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.