Many of us have faced increased mortgage rates recently but there are thousands of homeowners who have been trapped with high rates for more than a decade after their lender collapsed.

These ‘mortgage prisoners’ are stuck on exorbitant mortgage deals, and in the past year, near-monthly rate rises have seen some prisoner’s rates leap from 4.5% to as much as 8.29% - pushing homeowners to the brink.

A new report1 has revealed that the worry of not being able to escape their unaffordable mortgages has had a devastating impact with many of them suffering financially, mentally, and physically with no end in sight.

But victims and their lawyers – Harcus Parker – will be taking their case to the High Court for the very first time as they push for an end to their unfair charges and compensation for what they have been through.

While the government has made more than £2 billion from the sale of these loans hundred and thousands of mortgage prisoners have been overcharged billions while the FCA and the Government has done little to support them.

Most have been unable to switch to a different provider because they don't pass current strict affordability tests.

As a result Harcus Parker is taking action against the companies that bought the loans from the Government – arguing that they deliberately stopped the mortgage prisoners from accessing cheaper, more affordable rates because they knew they would be unable to switch providers.

In response to the report, a spokesperson for HM Treasury said: "We are open to practical and proportionate solutions to help mortgage prisoners, working with the Financial Conduct Authority and industry to carefully consider all proposals put forward."

Harcus Parker, the firm of specialist group action solicitors which is bringing the case in the High Court, say that up to 27,000 people could ultimately join the Whistletree claims litigation but that many have no idea that they can join and that they could fight for their money back.

Since TSB bought the loans, it has charged its Whistletree customers almost double the rates charged to its other customers. Until recently, it had also refused to allow these ‘mortgage prisoners’ to access to ‘ordinary’ TSB fixed-rate deals on the same basis as its other customers.

Many of these borrowers have unblemished repayment histories, but have been unable to move to another lender because they would not qualify under new, stricter affordability requirements imposed by regulators.

Anybody whose mortgage has been administered by ‘Whistletree’ is eligible to claim. Customers who took out a ‘Together Mortgage’, which allowed borrowers to access lending of up to 125% of the value of their homes, may be able to seek additional compensation.

At a hearing at the Chancery Division of the High Court will be asked to make a Group Litigation Order, consolidating the claims and making it possible for anybody who has ever had a mortgage administered by ‘Whistletree’ to seek compensation.

For more information and to arrange an interview please contact:

sasha.nouyou@markettiers.com or 07903 858 498

Tags

More Like This

SUPREME COURT BLOCKS TREASURY INVOLVEMENT IN CAR FINANCE PROCEEDINGS

REVEALED: ENERGY BROKERS POCKETED SECRET COMMISSIONS AT EXPENSE OF CHARITIES AND SMALL BUSINESSES

The 2½ % mortgage, a Pauzible solution

The Government must respect the UK Supreme Court and not interfere in car finance mis-selling compensation, Courmacs Legal says

Sentinel Legal Celebrates Victory for Consumers: Landmark Court of Appeal Ruling in Motor Finance Mis-Selling Case

UK Mortgage Arrears Rate Hits New High

UK Residential Mortgage Arrears Fall to Lowest Since 2022 but Buy-to-Let Borrowing Stress Increases

Q4 mortgage data reveals residential arrears increase as borrowing costs rise unexpectedly