Lead campaigner for the UK Mortgage Prisoners Action Group, Rachel Neale, has penned an open letter to the Government ahead of Wednesday’s Budget announcement, calling for more action to be done to help the UK’s mortgage prisoners.

The open letter, addressed to Economic Secretary to the Treasury, John Glen, and Chancellor, Rishi Sunak, called last week ‘one of the worst’ since the campaign group had started seeking Government help.

The letter came in response to comments made by Glen, who last week stated that any proposals put forward to help mortgage prisoners would only be considered if, amongst other clauses, they did not present a ‘moral hazard’ and delivered value for money to the Government.

The campaign group has described a mortgage prisoner as anyone who finds themselves unable to remortgage or refinance their existing property, or a new property, and are therefore locked in the mortgage for their current home when they could potentially get a cheaper deal elsewhere.

The open letter stated: “We are a group drowning under the financial pressure you have stowed upon us from your choices in putting banks and vulture funds before your own people. You have left a situation to rot for over a decade where more mental health sets in, and debt builds up for these people.”

In the letter, Neale, who described herself as a mortgage prisoner, told the Government it had created a ‘moral hazard’ itself by selling people’s homes to private equity firms – who do not pay tax in the UK – and suggested the Government had already taken a £5bn profit off the backs of the mortgage prisoners, who they had ‘squeezed of every last penny’ over the last 12 years.

“It is because of the moral hazard you have created on us that we sit here losing our homes, stopping people killing themselves, and all chipping money in to help others pay for food and clothing,” the letter said.

“Stop selling our mortgages to vultures and sort the mess out which you have actively allowed to continue. After all, your moral obligation will be judged on how you act – not on words. These people need help and action now, not more waiting, we need fair mortgages for all and a fair system.”

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