The Economic Secretary to the Treasury John Glen MP, has written to the Treasury Committee concerning ‘mortgage prisoners’.
In his letter to the committee’s chair, Nicky Morgan MP, it states that “exploring solutions” for customers with inactive lenders is a top priority.
UK Finance has welcomed the Treasury’s stance.
Jackie Bennett, director of mortgages at UK Finance, said: “We strongly support the government’s commitment to explore potential solutions for customers who have mortgages with inactive lenders.
“The industry has already made a voluntary commitment to help longstanding borrowers on reversion rates with active lenders switch to a new deal.
“However, many ‘mortgage prisoners’ are with inactive lenders or unregulated owners and therefore cannot switch to a new deal due to current legislation.
“We will continue working closely with the government and FCA to look at how active lenders might be able to support these customers. This could include changing the current rules to make it possible for customers who want a like-for-like mortgage to move between lenders more easily.”
