Mortgage Prisoners Inquiry Bill [HL]

Earl of Effingham Excerpts

Friday 4th July 2025 Lords Chamber

[Lord Sharkey (LD)]

My Lords, I would like to take this opportunity to thank all those who have supported the Bill and the wider effort to bring justice to mortgage prisoners. In particular, I thank the noble Earl, Lord Lytton, the noble Baroness, Lady Bennett of Manor Castle, the noble Lord, Lord Altrincham, and the right reverend Prelate the Bishop of Chelmsford for their contributions at Second Reading. I also thank my invaluable colleague Dominic Lindley. The Bill may be leaving us now, but the campaign for relief for the mortgage prisoners will continue.

[The Earl of Effingham (Con)]

My Lords, I thank the noble Lord, Lord Sharkey, for his tireless work on proactively raising awareness of this issue and continuing to maintain that dialogue. The nearly 200,000 individuals trapped as mortgage prisoners will be thanking him as he keeps up the momentum. People who are unable to secure better mortgage terms for a whole range of reasons often suffer challenging financial hardship and its detrimental knock-on effects, particularly in a world of heightened interest rates as a result of the many geopolitical risks of the past few years. This issue is a well-documented problem that has its roots largely in the 2008 financial crisis.

His Majesty’s Official Opposition understand the frustration of mortgage prisoners across the country, and we support the noble Lord, Lord Sharkey, in his efforts to bring the challenges mortgage prisoners face to the attention of His Majesty’s Government, with a view to finding a resolution to this long-standing problem. These challenges are ruining lives:

“It’s a constant, daily battle to get up and get on with the day knowing that at the end of it there’s nothing to show for it other than being able to maintain the roof over my head”.


It is only right that your Lordships’ House continues its work to raise the profile of this issue.

When we debated the Bill at Second Reading, we raised concerns about the lengthy nature of inquiries, and we hope that the Government will seek resolution as swiftly as possible. We should not risk delaying that process.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I thank the noble Lord, Lord Sharkey, for his continued commitment to this important issue, and all noble Lords who have contributed their perspectives to the debate. As discussed at Second Reading, the origins and treatment of mortgage prisoners have been subject to close consideration by Parliament, the Treasury Committee and the Financial Conduct Authority. The circumstances of mortgage prisoners are not a matter the Government take lightly.

However, the Government consider that the Bill is not necessary. It would divert resources and focus on to issues that have already been extensively scrutinised, and our assessment continues to be that the correct process was followed when these mortgages were sold back to the private sector in the years after the financial crisis. Since then, the Financial Conduct Authority has introduced further protections, including a modified affordability assessment and, more recently, the consumer duty, which places clear obligations on all mortgage lenders to ensure fair treatment for their customers.

Nevertheless, the Government remain committed to ongoing engagement with both industry and regulators to ensure that the needs of affected borrowers continue to receive careful and thorough consideration. Although the Government maintain their reservations about the Bill, I again thank the noble Lord, Lord Sharkey, for bringing this matter before the House and for his continued engagement on behalf of those affected.