Found: Payment shortfalls % 17.2% (34,000) 24.9% (41,600) Higher interest rates Since our 2021 Mortgage

Found: For example, the FCA’s relaxing of affordability rules to support mortgage prisoners, forbearance

Found: include: Blackmore Bond; Woodford; Dolphin Trust; HBoS Reading; RBS Global Restructuring Group; ‘mortgage

Found: The FCA has used this position in cases such as the Lloyds Banking Group’s mortgage prisoners and

Found: Q606 Rushanara Ali: On mortgage prisoners, would you be able to write to me to tell me what the circumstances

Found: Q14 Rushanara Ali: Do any of you know about mortgage prisoners and what the implications of the rising

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will announce a timeline for a decision on whether additional measures will be introduced to further support mortgage prisoners.

Answered by Bim Afolami - Economic Secretary (HM Treasury)

The Government understands that being unable to switch your mortgage can be extremely stressful. Alongside the Financial Conduct Authority and industry, we have shown we are willing to act through the introduction of a ‘modified affordability assessment’, which removes the regulatory barriers that prevented some customers, who otherwise may have been able to switch, from accessing new products. We are also regularly in contact with key stakeholders, including recently with the UK Mortgage Prisoners campaign group.

The Government remains committed to this issue and will continue to work with industry and wider stakeholders to determine if there are proposals that will meaningly benefit affected borrowers and be fair to other borrowers in the wider market.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent steps he has taken to support homeowners who are unable to switch to a cheaper mortgage deal.

Answered by Bim Afolami - Economic Secretary (HM Treasury)

The Government understands that being unable to switch your mortgage can be extremely stressful. Alongside the Financial Conduct Authority and industry, we have shown we are willing to act through the introduction of a ‘modified affordability assessment’, which removes the regulatory barriers that prevented some customers, who otherwise may have been able to switch, from accessing new products. We are also regularly in contact with key stakeholders, including recently with the UK Mortgage Prisoners campaign group.

The Government remains committed to this issue and will continue to work with industry and wider stakeholders to determine if there are proposals that will meaningly benefit affected borrowers and be fair to other borrowers in the wider market.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 8 March 2023 to Question 157639 on Mortgages, whether he plans to publish a response to the report entitled Releasing the Mortgage Prisoners, published on 1 March 2023.

Answered by Bim Afolami - Economic Secretary (HM Treasury)

The Government understands that being unable to switch your mortgage can be extremely stressful and, alongside the Financial Conduct Authority and industry, have shown we are willing to act, such as through the introduction of a ‘modified affordability assessment’.

The Government remains committed to this issue, and we are considering the proposals put forward in this report very carefully. While we cannot force lenders to lend to borrowers they consider too high a risk, we welcome views on any further practical and proportionate solutions that would meaningfully assist affected borrowers and be fair to other borrowers in the wider market. We are also regularly in contact with key stakeholders, including recently with the UK Mortgage Prisoners campaign group, to discuss potential solutions.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to his Department's policy paper, Mortgage Charter, updated on 5 July, what recent assessment he has made of the implications for his policies of proposed solutions in the report entitled Releasing the mortgage prisoners, published by the London School of Economics in February 2023.

Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)

The Government understands that being unable to switch your mortgage can be extremely stressful, and, alongside the Financial Conduct Authority (FCA) and industry, have shown we are willing to act through the introduction of a ‘modified affordability assessment’. We are also regularly in contact with key stakeholders, including recently with the All Party Parliamentary Group on Mortgage Prisoners.

Importantly, all lenders – including those with inactive books - are regulated by the FCA and must provide tailored support to borrowers. The Chancellor has made clear his expectation for lenders to live up to their responsibilities and support any mortgage borrowers who are finding it tough right now. The Government hopes other firms will do the right thing and sign up to the Mortgage Charter as soon as possible.

However, the Government remains committed to the issue of mortgage prisoners, and we are considering the proposals put forward in the London School of Economics report very carefully. While we cannot force lenders to lend to borrowers they consider too high a risk, the Government welcomes any further practical and proportionate solutions that would meaningfully assist affected borrowers and be fair to other borrowers in the wider market.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the number of new mortgage prisoners since September 2022; and if he will make an estimate of the number of mortgage prisoners for each of the next three years.

Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)

Information on the number of mortgage prisoners was provided by the Financial Conduct Authority (FCA) in 2021. A link to that report is provided below.

https://www.gov.uk/government/publications/mortgage-prisoner-review

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the implications for his policies of the report by Kath Scanlon, Bob Pannell and Peter Williams entitled Releasing the mortgage prisoners: proposed solutions and illustrative costings, published on 1 March 2023 February 2023; and whether he plans to implement the recommendations of that report.

Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)

The Government understands that being unable to switch your mortgage can be extremely stressful, and, alongside the Financial Conduct Authority and industry, have shown we are willing to act through the introduction of a ‘modified affordability assessment’. We are also regularly in contact with key stakeholders, including recently with the All Party Parliamentary Group on Mortgage Prisoners.

The Government remains committed to this issue, and we are considering the proposals put forward in this report very carefully. While we cannot force lenders to lend to borrowers they consider too high a risk, the Government welcomes any further practical and proportionate solutions that would meaningfully assist affected borrowers and be fair to other borrowers in the wider market.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department is taking steps to help support people who took out mortgages before 2008 with regulated banks which subsequently collapsed and are now unable to switch to new mortgage deals.

Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)

The Government understands that being unable to switch your mortgage can be extremely concerning, and, alongside the Financial Conduct Authority and industry, have shown we are willing to act through the introduction of a ‘modified affordability assessment’. We are also regularly in contact with key stakeholders, including recently with the All Party Parliamentary Group on Mortgage Prisoners.

The Government remains committed to this issue, and welcomes any further practical and proportionate solutions that would meaningfully assist affected borrowers and be fair to other borrowers in the wider market.

Mortgage prisoners

Found: financial and related professional services industry in driving economic growth Joanna Penn 26/04/2023 Mortgage