Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to reduce the number of mortgage prisoners.

The government is committed to helping mortgage prisoners where they will see genuine benefit. This has included work with the Financial conduct Authority to implement rule changes to its mortgage lending rules, removing the regulatory barrier that prevented some customers, who otherwise may have been able to switch, from accessing new products. The new rules should allow customers to switch to an active lender as long as they meet the lenders’ risk appetite and meet certain criteria, such as not looking to borrow more and be up to date with payments. Inactive lenders have now started contacting borrowers who have been struggling to switch, setting out new options that may be available for them on the active market. A number of lenders have also come forward with products specifically for these borrowers.

In addition, the Money and Pensions Service (MaPS) launched online information and a dedicated phone service (accessible via MaPS’ main contact number) as a key source of information and advice for borrowers with inactive lenders, including signposting to specific brokers that will be able to help them look for a deal with an active lender.