LiveMore has called on the industry to support mortgage customers, after an All Party Parliamentary Group (APPG) published a report condemning the Financial Conduct Authority (FCA) on its handling of "mortgage prisoners".
In the report, the APPG said that none of its five respondents that were questioned in regard to their mortgage issues had their problems "resolved" by the FCA, some of which had been outstanding for years.
The impacts of being mortgage prisoners includes the threat of repossession, losing the property and the knock on effects of extreme financial stress.
The report stated that in many cases, the regulator appeared to be taking the position that “they can only recommend or request the banks do the right thing for vulnerable customers but cannot compel them to do so”.
Chief executive officer at LiveMore, Leon Diamond, said: "As hard-hitting as the APPG report is, it is a stern reminder to the industry of how serious this issue is for thousands of mortgage prisoners across the UK.
"In accordance with our social bond principles to progress social sustainability, we consider it our responsibility to protect consumers from financial stress and support them in what we believe is their fundamental right to live in their own home – especially as they get older.
"It is incomprehensible that more than 200,000 mortgage prisoners in the UK remain in this extremely difficult position. The report refers to financial stress, threat of repossession and goes way beyond financial losses to include physical and emotional health issues and, most tragically, suicide."
Diamond also stated that it is "fundamentally important" that consumers understand that there are lenders who are "willing to be more flexible" and carry out a modified affordability assessment.
"For too long, the over-50s have been let down by lenders," Diamond added. "Consumer Duty has very firmly shifted the onus of a ‘good outcome’ onto financial services providers. It is our responsibility to help out mortgage prisoners in any way we can."
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