Rachel Neale, a lead mortgage prisoner campaigner, met with Nicky Morgan MP and Seema Malhotra MP on Friday to discuss the plight of borrowers who are trapped on high rate mortgages following the government’s sale of its closed book portfolio lenders.
Last month, the government sold NRAM — formerly part of Northern Rock — mortgages to inactive lender Citi, which is unable to offer new mortgages.
Friday’s meeting was described as “positive” by Neale who said the All-Parliamentary Party Group, which was set up by Malhotra, was going to push for a public inquiry by gaining support from other MPs.
Neale said Jacob Rees-Mogg MP and Charlie Elphick MP had given their support to the campaign.
The mortgage prisoner group has almost 1000 members via Facebook and Neale said action was required quickly to reduce the pressure on borrowers whose mortgages were sold by the government.
“People are contacting us every day, explaining the impact the slow process is having on their lives,” she said.
“We are writing to a number of lenders asking for help for individuals who are close to having their homes repossessed due to the high interest rate they are on. There are people coming forward with severe mental health problems and relationship breakdowns, following the aggressive behaviour of companies such as Landmark, Whistletree and Mortgage Agency Number Five.
“The Treasury and FCA need to act quickly not only due to people’s well-being but due to many being left on high interest or interest only mortgages. They are unable to move with their mortgages coming to an end.”
Neale said she would meet with the FCA’s Andrew Bailey this Friday to explain what needed to happen and the urgency of the matter.