Online mortgage broker Trussle has displayed its concern over the “shocking” number of ‘mortgage prisoners’, with 200,000 homeowners trapped in an expensive deal.
Following the Ten Minute Rule Bill proposed by Conservative Charlie Elphicke, which is also to be read for a second time in Parliament today, Trussle CEO and founder Ishaan Malhi has stated that “hundreds of thousands” of mortgage prisoners would be granted the power to switch to a cheaper mortgage deal – a “step in the right direction” to making mortgages fairer.
The bill seeks to support and allow consumers to transfer their mortgages between providers and ban the sale of mortgage debt to unregulated institutions, and would save many homeowners a great deal of money.
Malhi added: “This group of people [mortgage prisoners] have been overlooked for too long and it’s crucial that the government step in to help by granting them an exemption to affordability rules.
“It’s worth mentioning that millions of people across the UK are currently overpaying on their mortgage because they’ve fallen onto their lender’s Standard Variable Rate. However, unlike mortgage prisoners, they can switch to a deal that better suits their needs.
Trussle is campaigning for a “Mortgage Switch Guarantee”, which would make it easier for borrowers to switch to more suitable deals and ensures lenders commit to greater transparency, while also addressing the loyalty penalty currently seen in the mortgage market.
In its efforts to support lenders, Trussle has introduced a free mortgage monitoring service.
“[The service will] alert borrowers when a better deal comes onto the market. If it calculates that savings could be made by switching, we will automatically alert the borrower so they can relax in knowing that their mortgage is proactively looked after,” Malhi said on the product.
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