Mortgage Prisoners
Debate between Martin Docherty-Hughes and Chris Stephens(10 months ago)
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Chris Stephens (Glasgow South West) (SNP)
It is a pleasure to see you in the Chair, Mr Robertson. I congratulate my good friend and comrade, my hon. Friend the Member for West Dunbartonshire (Martin Docherty-Hughes), on securing the debate and on giving an excellent outline of the position of so many people who are caught up in this scandal. I compliment the hon. Members for North Norfolk (Duncan Baker) and for Feltham and Heston (Seema Malhotra) on their excellent speeches, too.
As others have said, mortgage prisoners are people who cannot switch mortgages to a better deal, even if they are up to date with their payments. It is estimated that up to 40,000 people in Scotland are currently in the category of mortgage prisoners. Most mortgage prisoners have a mortgage in a closed book of an inactive firm, which means that the mortgage is held with a lender that can no longer make mortgage contracts because they are not authorised to do so. At the same time, regulators and lenders are imposing more stringent criteria on borrowing to help to prevent another financial crash, and many people are unable to meet the new conditions. As a result, they are unable to move to other deals, even if they would pay less by doing so.
Stakeholders including Martin Lewis and the UK Mortgage Prisoners action group have consistently criticised the Government for not taking action to help mortgage prisoners. Earlier this year, a report produced by the London School of Economics and funded by Martin Lewis said that the UK Government had made a surplus of £2.4 billion from the sale of mortgage books. It offered costed proposals that it argued would meet Government criteria for helping to solve the problem.
As we know, there have been previous parliamentary debates on the issue. In 2021, the Lords agreed an amendment to the Financial Services and Markets Bill that the Commons voted against during ping-pong. The Government argued that it would be an unacceptable and unfair intervention in the mortgage market; as a result, the Lords agreed to remove the amendment. The chief executive of the FCA told the Treasury Committee in May 2021 that further reforms to help to resolve the situation were up to Parliament. In March 2023, Lord Sharkey introduced an amendment to the Financial Services and Markets Bill that was identical to the one passed in 2021, but he agreed to withdraw it when the Government promised to meet stakeholders to discuss the proposals in the LSE report. I hope the Minister will update the House on where those discussions are.
It is abhorrent that people are at risk of losing their homes as a result of being mis-sold their mortgages prior to the financial crash. Homeowners across the UK are being hit by soaring mortgage rates, but mortgage prisoners are being hit even harder.
Martin Docherty-Hughes
My opening speech explained why we got here. Does my hon. Friend agree that an addiction to a neo-liberal economic model is to blame for the treatment of mortgage prisoners?
Chris Stephens
I agree. There is also a poverty premium that we need to discuss, which I will come to shortly.
As Rachel Neale from the UK Mortgage Prisoners campaign group has noted, their interest rates have gone from 4.5% all the way up to 9%, 9.5%, 10% and above. A number of these homeowners have been trapped—
Scottish Independence and the Scottish Economy
Debate between Martin Docherty-Hughes and Chris Stephens(1 year, 5 months ago)
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Chris Stephens (Glasgow South West) (SNP)
It is a pleasure to follow my hon. Friend the Member for Edinburgh East (Tommy Sheppard); I will, of course, touch on similar themes in my contribution.
Saturday 29 October would have been the 100th birthday of my grandmother, who was an SNP voter and independence supporter. I am proud to be a third-generation SNP voter and to represent a constituency that had the second highest number of individual yes voters in Scotland, topped only by Dundee West. Let me assure the House that the competition will be on next time.
Chris Stephens
If West Dunbartonshire wants to rise to the challenge, we would more than welcome that.
It is important that this point is recognised: listening to some of the contributions today, we might think that not one constituency in Scotland had voted for Scottish independence, but of course many constituencies did vote for that proposition. What has been fascinating in this debate is that not one speaker arguing against independence or a referendum has told us what conditions they believe would apply for there to be a referendum. I find that deeply fascinating: they say that in their view there is not enough support, but will not tell us what would be required for there to be a referendum. Deeply fascinating indeed. I must say that a number of contributions have been strange. I thought that the hon. Member for Aberconwy (Robin Millar) had left the Chamber, but I can see that he is sitting behind the deputy governor general—I use that particular title as a term of endearment—the Under-Secretary of State for Scotland, the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont). The hon. Member for Aberconwy talked about the ships that are hosting Ukrainian refugees. I have been on one ship, and it had really good conditions. I can tell him that I have had zero complaints about the conditions on that ship, but every single week I get complaints about the conditions and the overcrowding of Home Office accommodation for asylum seekers. Why is that the case? It is because the Home Office has argued that it does not need to comply with Scottish housing standards, that it does not need to comply with local authority standards. It is quite curious that the hon. Member mentioned that example, when the reality is that it is the conditions that the Home Office applies that cause real deep resentment for those seeking sanctuary in this country.
I was also fascinated by the Secretary of State’s contribution about our Union dividend. What has been the largest growing area of the economy over the past 12 years? It is the number of food banks in this country. That is not a Union dividend. We need to reflect on the fact that far too many citizens across these islands are having to depend on food aid, including working people. We have just advertised for a larder project in Cardonald, and we know that many of the users will be working people, which is why we will be opening them in the evenings so that people can utilise their services. The number of food banks in this country is no Union dividend at all.
Let me explain why those of us who have been trying to prosecute the case for Scottish independence are still doing so. Days after the referendum, David Cameron stood up and talked about English votes for English laws and basically said that Scotland had had its fun. That was very much resented by a number of people. It was the nasty campaign, the negative campaign, and, yes, the fearful campaign against Scottish independence that ensured we would still be debating this issue. There was never a positive case put forward during that campaign by those who wished Scotland to remain in the United Kingdom.
I want to spend the minutes I have left to touch on the issue of workers’ rights, which my good and hon. Friend the Member for Edinburgh East (Tommy Sheppard) addressed in his speech. It is a key part of the Scottish Government’s paper, which, curiously, no one has criticised. We really need to get away from this obsession that the current Government have of always being on the side of the bosses, and always being on the side of making sure that their view of insecure work should be the model going forward. I want to see an independent Scotland saying that there will be no zero-hour contracts in our country. I want to see trade unions have the ability to go on strike without fear of being taken to court on cheap charges. I want to see trade unions being given the right to use online and secure workplace balloting. If it was good enough for the Conservative party to use workplace voting and online voting to select a Prime Minister who crashed the economy then surely it is good enough for trade unions.
We need to change the world at work and to bring dignity and fairness to the workplace. Unfortunately, this place will never articulate a way of doing so, which is why I will continue to argue for Scottish independence and for votes for the Scottish National party.