House of Commons bid to free thousands of UK ‘mortgage prisoners’ from ‘crippling’ rates

Tens of thousands of “mortgage prisoners” would be freed from “crippling” rates under a proposed law, an MP has said.

Many of those people affected saw their lenders collapse in the 2008 financial crisis and have since been trapped on high rates, unable to switch due to toughened borrowing criteria.

The SNP’s Martin Docherty-Hughes moved his Mortgages (Switching) Bill in a bid to “finally end the unfair 16-year financial injustice and address the failures of successive Conservative and Labour governments”.

The MP for West Dunbartonshire told the Commons: “An estimated 200,000 people across the UK, including 40,000 Scots, deemed mortgage prisoners are thought to be at risk of losing their homes.”

Prime Minister Rishi Sunak, speaking in January, said he was familiar with the situation and assured Docherty-Hughes that there were “things being looked at as we speak”.

Docherty-Hughes said: “Yet, in the last week, the Chancellor (Jeremy Hunt) has failed to introduce measures to tackle the issue.

“It is scandalous that the spring Budget has, yet again, ignored the plight of tens of thousands of individuals and families unfairly trapped on crippling mortgage rates.”

Ahead of his Commons speech, Docherty-Hughes wrote on X, formerly Twitter,: “Today I’ll present a Ten Minute Rule Bill to free #MortgagePrisoners, all 200,000 with at least 40,000 in #Scotland.

“Let’s remove the chains of being trapped on standard variable rate, stop profiteering by non lending companies, ensure the right to compensation.”

Docherty-Hughes asked for his Bill to be considered at a second reading on June 14 although it is unlikely to become law in its current form due to a lack of parliamentary time.”