Mortgage Prisoners guide - What can I do? 9 June 2021 at 4:06PM in Mortgages & endowments 25 replies 3.8K views

user1977

Sncjw said:

Can I ask what a mortgage prisoner is? 

Have you read the article linked to in the OP?

Strummer22

Angelcrackers said:

Hello, I am wondering if we are mortgage prisoners and are looking for advice.
Took out an interest only mortgage with Future Mortgages in 2007 via a broker who gave us advice that we could borrow this much on self cert.
But the rate was quite high and as we had no choice we went for it.  Over the years it was a lot to fine and at various times we were in arrears due to periods of enforced reduced hours and other issues. The mortgage was sold or taken over by Engage Credit.
With rates going up and up now we are struggling and paying as much as we can every month but it's killing us and we are behind but Engage won't offer us a better deal.  Obvious I'm doubtful anyone else would take us either. Any help or feedback very welcome.
House is worth about 560k and we owe about 255k.

You’ve got a good amount of equity but otherwise there’s very little info as to whether you would have any luck getting a better deal.  

How long is left on the mortgage, and how long until you reach retirement age? What’s the current interest rate and monthly repayments? Is it fixed (if so for how long?) variable or tracker?

Do you have two wage earners in the house or just one? How much do you earn? Are you employed, self-employed, contractors etc?  Do you have any other adverse credit history besides the mortgage arrears?

if you’re completely unable to repay your current mortgage could you sell up and move somewhere cheaper?

Edi81

Sncjw said:

Can I ask what a mortgage prisoner is? 

https://www.ukfinance.org.uk/our-expertise/mortgages/mortgage-prisoners

silvercar

“MORTGAGE PRISONERS

Mortgages prisoners are borrowers that are up to date with their mortgage payments but who are unable to switch mortgage providers because they have a mortgage loan or borrower characteristics that are outside of current lender appetites.“

It doesn’t really matter whether it is because of age, a current mortgage term ending, the current lender not offering new mortgages or any other reason. If you are up to date with payments but can’t switch providers you are stuck with your existing lender and are therefore a prisoner.

Some comments on this thread are not helpful to those who are stuck in a difficult position. 

tifo

GraceCourt said:

Santander didn't ever apologise for their five years of threats and blustering.  The worst bank in the UK.

I agree, it's been a nightmare for me being with them for the past 24 years. They don't care about anything.