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Relief for mortgage prisoners as lenders cut rates to match BoE

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  • 12/03/2020
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Relief for mortgage prisoners as lenders cut rates to match BoE
Heliodor Mortgages and Landmark Mortgages have confirmed 0.50 per cent reductions will be made to variable mortgage interest rates to provide relief to some members of the UK Mortgage Prisoners campaign group.

 

Rachel Neale, lead campaigner of the UK Mortgage Prisoners, spoke to both lenders to ask if they would be reducing rates after the Bank of England made an emergency cut to the base rate from 0.75 per cent to 0.25 per cent. 

Helidor confirmed to Mortgage Solutions that all mortgages held with its parent company Topaz Finance will benefit from the reduction, including its Melanite, Rosolite and Siberite brands. 

A spokesperson for Landmark Mortgages also confirmed the lender would make reductions to its standard variable rate. 

Both reductions will come into effect from 1 April 2020. 

 

Call for intervention 

In an open letter, Neale urged lenders to make changes to rates regardless of whether they are legally obliged to or not. 

Neale also called on the Financial Conduct Authority, the government, the Bank of England and supporting All Party Parliamentary Groups to step in and stop mortgage prisoners from being “financially exploited” for a second time.  

She will also be writing to Mortgage Agency Service and Tulip to find out whether there are plans to reduce rates. 

 

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