The UK Mortgage Prisoner Action Group said the entities that hold mortgage prisoner loans on their books were not invited to meet with the Chancellor.  

Last Friday, Jeremy Hunt met with lenders and industry bodies to discuss ways to support homeowners who are struggling due to the economy. On Monday, a charter was published with around 85% of the UK’s mainstream mortgage lenders agreeing to a set of commitments to help mortgage holders. 

It said entities such as Landmark, Heliodor, Kensington, Pepper and others who held mortgage prisoner books were not among the signatories to the charter. 

The UK Mortgage Prisoner Action Group has asked the Chancellor to ensure that mortgage prisoners will be given the same forbearance. 

The group said: “Our members have, for the past 15 years, been on the rates that the active borrower community now cannot sustain and for which the government are providing intervention measures. Our pleas for help on those rates went unanswered. We were repeatedly told that the Government would not interfere in commercial decisions regarding mortgages when we sought their intervention, yet here it is for the active market.  

“Now mortgage prisoners are on averaging rates of nine per cent. And still, there is no help from the government.” 

Mortgage prisoners forced to sell up 

The group said many of its members had to sell their homes because of the 13 consecutive base rate increases as their position had become “wholly unsustainable”. 

It said its members were sold interest-only mortgages as they were more commonplace at the time, but this left them unable to switch to repayment products because of affordability. 

The group added: “End of term is approaching for many and few have options other than repossession or sale. Urgent intervention is required for these households. 

“Measures announced to enable temporary switches to interest-only will not assist a large swathe of customers who are already trapped in historic interest-only mortgages. 

There will be a debate at Westminster Hall on 28 June to discuss mortgage prisoners.  

The group said it hoped to “hear some effective answers from the Government”.