I'm a mortgage prisoner – help!

We believe mortgage prisoners deserve better and have been campaigning on this issue for many years. You can read more about our long fight to help mortgage prisoners.

Not sure if you're a mortgage prisoner?

Ask yourself these two questions:

1. Did you purchase your home, or remortgage, prior to 2014 (under the old rules)?

2. Since then, have you been told you can't switch to a more competitive, cheaper deal?

If the answer to both of these questions is 'yes', you're likely to be a mortgage prisoner.

Some mortgage prisoners have options – do you?

Right now, for the vast majority of mortgage prisoners there's currently NO HELP. And with the interest rates they're paying higher than ever (for some as high as 9%), the outlook has grown bleaker. That's why we'll continue to campaign hard for extra measures. 

But not every mortgage prisoner is in the same situation. In fact, some homeowners are not strictly 'imprisoned' at all, and have options available to them thanks to some rule changes.

Here are four things to try, in case you're one of the few who can do something NOW:

1. Switch to a new lender that chooses to 'relax the rules'

These days lenders can carry out a 'modified affordability assessment'. This means lenders are allowed to waive some of the strict checks – if they choose to. In other words, some mortgage prisoners may be able to switch to a new lender as a result.

Who can get it? This option is theoretically open to all, but crucially as it's the lender's choice whether it uses it, many mortgage prisoners – especially those in negative equity, with interest-only deals or very little equity in their homes – will find they won't get it.

Here are the criteria lenders typically use to decide if you can get it:

- Minimum of five years remaining on the mortgage.
- Remaining mortgage balance of at least £50,000.
- Up to date with your mortgage repayments, and have been for at least 12 months.
- Do not want to borrow more.
- A maximum loan-to-value typically of no more than 75%.
- A clear repayment plan if you are on, and want to remain on, an interest-only mortgage.

How do I switch to a new lender? The best way is to get advice from a mortgage broker as they will be able to assess your chances using your specific circumstances.

The lenders in the table below say they have products to help mortgage prisoners, so make sure to ask your broker about them. Other lenders may also offer deals to mortgage prisoners, but on a more 'ad hoc' basis – which is where a broker could help.

2. Switch to a cheaper deal with your current lender

The majority of mortgage lenders have agreed to help existing borrowers who are on standard variable rates and up-to-date with their repayments. So, if you're up-to-date and your lender is offering new deals, you should be able to ask it to switch rate.

The key caveat here though is that it has to be a like-for-like mortgage, in other words, no extra borrowing and on the same property.

Getting a new deal from your current lender is known as a 'product transfer' (remortgaging being where you apply for a new deal from a different lender entirely). 

Who can get it? You can apply for a product transfer if your lender currently offers new mortgages to homebuyers. You'll need to be up to date with your repayments, and not after increased borrowing or a change of property.

How do I do it? The first thing to do is ask if your lender is "active in the mortgage market". Then speak to your lender about switching to a cheaper deal via a product transfer.

A broker can advise – including about whether switching lenders entirely might be even better for you. See our Cheap mortgage finding guide for how to find a broker, or MoneyHelper's list of brokers who have said they will help mortgage prisoners.

3. Switch to a lender that's part of the same lending group

Some mortgage prisoners with inactive lenders are able to switch to a cheaper deal with an active lender that is part of the same financial group as their existing lender.

Who can get it? Frustratingly, there is no simple way for you to check if your lender is part of a wider group. Smaller lenders are bought up by bigger institutions all the time. This is an instance where speaking to a broker might help clear things up.

How do I do it? Find a broker who can help you work out if your lender is part of a wider group, plus they will be able to advise you on your specific circumstances. Our Cheap mortgage finding guide explains how to find a broker, or MoneyHelper has a list of brokers who have said they will help mortgage prisoners.

Need to know: Unfortunately, while the rules essentially allow lenders to be more flexible if they want to, the financial regulator cannot force them to accept customers.

4. Check if you're able to take legal action

A few years ago law firm Harcus Parker launched legal action against TSB on behalf of mortgage prisoners whose mortgages are (or were) managed by the lender's 'Whistletree' brand. Previously these home loans were owned by the now defunct Northern Rock.

According to the lawsuit, affected homeowners have been overcharged about £50,000 each in interest by TSB, a result of being forced on to a more expensive rate than other borrowers. Harcus Parker is encouraging any mortgage prisoner whose mortgage is – or ever has been – managed by Whistletree to join the group action.

Since launching, Harcus Parker has also invited borrowers with Heliodor Mortgages, Landmark Mortgages and NRAM to join the claim.

Importantly, this is not us saying you should do this. There are pros and cons to taking part and you need to consider these carefully. Our TSB legal action news story has more.

Circumstances that may boost switching chances

When you apply for a new mortgage deal, the lender will weigh up whether it would like you or not as a customer – though the answer is typically 'no' if you're a mortgage prisoner.

However, there are some circumstances that can boost your chances of acceptance:

1. Move to a repayment deal from interest-only

If you're on an interest-only mortgage, new lenders will expect you to have a repayment plan (and proof of it) to clear the outstanding mortgage at the end of its term. Without this, it is very unlikely that you will be able to benefit from new switching options.

What can I do to improve my chances? If you've no longer got a convincing repayment plan, moving from interest-only to repayment is something to consider. This will depend on your age (moving to repayment can add years to the mortgage term, so you may be too old), and what is left of your current term (the nearer your term's end, the trickier it is).

Some lenders may offer options like switching part of your mortgage to repayment, or arranging to make overpayments to reduce the overall debt. These will increase your monthly repayments, but you'll be chipping away at the overall debt which could make it easier to remortgage in future. A mortgage broker can help identify if this is right for you.

2. Watch out for 'negative equity' 

If the value of your home has gone down, you could be in what is called "negative equity". In this situation, your mortgage is bigger that the current value of your home.

Negative equity might reduce other lenders' appetite to offer you a deal, but it should not close the door on a product transfer with your current lender if one is available. So this is worth bearing in mind if you are with an active lender or an inactive lender that is part of an active group – though the rates may not be as competitive as those not in negative equity. 

This has been a particular issue in Northern Ireland, where a large number of homeowners with interest-only mortgages have found themselves in negative equity.

What can I do to improve my chances? If you're in this situation, it is often helpful to speak to a mortgage broker who will advise you on your individual circumstances.

3. Keep up to date with your repayments

Realistically, to secure a new affordable rate, lenders need to see evidence of a good credit history, and the way to show this is a minimum of 12 months' worth of on-time repayments.

What can I do to improve my chances? You MUST do everything you can to get up to date with your payments and remain out of arrears for at least 12 months.

4. Consider debt consolidation (if you have unsecured debt bundled with your mortgage)

There are estimated to be at least 17,000 mortgage prisoners who have unsecured debt bundled in with their mortgage. These are called "Together Loans" and were offered by Northern Rock, sometimes up to 125% of their property's value.

Crucially, these loans were at the same rate and were contractually linked. Changing to a new, cheaper mortgage breaks the link, triggering a large loan increase on the rate.

Modified affordability assessment allows unsecured loans to be consolidated, but many "Together" customers do not qualify.

What can I do to improve my chances? Approach a mortgage broker who has expertise in debt consolidation. Or contact StepChange, which has a subsidiary called StepChange Financial Solutions that has mortgage advisors with expertise in debt consolidation.

More stories from mortgage prisoners

Here are some other descriptions we've received over the past years:

MSE's long fight to help mortgage prisoners

MoneySavingExpert.com believes mortgage prisoners deserve better. That's why we have been campaigning to help the estimated up to 200,000 mortgage prisoners for many years.

In the early days, our founder Martin Lewis was one of the only public figures fighting for justice. For example, in 2015 he met key figures in the European Union, the Treasury and the Financial Conduct Authority (FCA) – the organisations responsible for UK mortgage regulations – to convince them that this was indeed a problem.

Since then there has been some change, when in 2019 the FCA removed some barriers standing in the way of mortgage prisoners accessing cheaper deals. Yet this only helped a fraction of mortgage prisoners, with thousands still trapped – so our fight has continued.

Then in 2020, the London School of Economics and Political Science (LSE) released a report – commissioned by MSE and funded by Martin Lewis – showing the urgent and necessary steps which could be taken to release more mortgage prisoners.

Most recently, in March 2023, LSE published a further report – again commissioned by us and funded by Martin Lewis – which set out a number of proposed costed solutions.

The Economic Secretary to the Treasury at the time promised to look in to these proposals, yet no further progress has been made since then. So our campaign will go on.

Watch: Martin Lewis talks about the proposed costed solutions

Further help for mortgage prisoners

The stress of being a mortgage prisoner can impact nearly every aspect of your life.

Beyond the mortgage itself, mortgage prisoners are more likely to have general debt problems or be in arrears, contributing to high rates of physical and mental health problems.

Yet if you're a mortgage prisoner, you are not alone. In fact, there are many in your shoes.

- Online support

You can find emotional and practical support and tips in online groups that are free to join. Just remember, what might feel right and be right for one person is not necessarily right for you, so don't feel pressured to do anything or take any steps because others are doing so.

- Free advice about energy bills and energy providers

If you're a mortgage prisoner who is struggling with your heating and electricity bills, or are experiencing issues with your energy provider, charity Pure Leapfrog can offer support.

Specifically, it has a free energy advice service that's tailored to mortgage prisoners, thanks to its partnership with the UK Mortgage Prisoners group. It can advise on topics such as:

- Reducing energy bills and debt.
- Boiler replacement funding.
- Energy efficiency upgrades.
- Damp and mould issues.
- Wider cost-of-living issues.

- Free debt help from charities

The aim is to find non-profit debt counselling help. In other words, a one-to-one session with someone paid to help you, not to make money out of you (which some companies do).

Three organisations to contact for free debt advice:

Mortgage prisoners FAQs