A date has been set in the High Court for the case between Harcus Parker and TSB concerning the treatment of Whistletree mortgage prisoners.
Legal proceedings will commence at the High Court on 22 July and last for two days. Solicitor Harcus Parker, who brought the claim against TSB’s subsidiary in 2022 and represents over 10,000 mortgage prisoners, out of 200,000 overall, says that if the trial is successful, it could “set a precedent for all mortgage prisoners to be financially compensated”.
The case centres around homeowners who had their mortgages transferred from failed banks like Northern Rock to inactive lenders who charged higher rates than traditional high street lenders.
Harcus Parker said those prisoners have been charged up to 10% interest on their mortgage and “stricter lending criteria” means than homeowners have been unable to switch to a better deal.
‘Thousands of mortgage prisoners on high interest rates’
Damon Parker, senior partner at Harcus Parker, said: “Tens of thousands of mortgage prisoners are still stuck on these high interest rates through no fault of their own. The financial pressure has devastated all affected and has led to families losing their homes, relationship break-ups and suicides. These people have been desperate for help.
“It is our contention that these people have been terribly financially exploited and deserve recompense.”
He continued: “We are very hopeful that the trial in July, this year, will finally determine that these people are victims of an appalling financial injustice and should be allowed to recover the excess money that they have paid.
“Our group litigation represents both current and former mortgage prisoners.”
Mortgage Prisoners Kevin Belson, 55, and his wife, Carol Belson, 57, of Swindon, who are paying 9.54 per cent interest, welcomed the news of the court date.
Carol said: “The repayment costs have been going up every month. We’re having to find an extra £500 a month at a time when our energy bills have also increased. We’re struggling to pay for food. It’s been a struggle for years.”
Prime Minister Rishi Sunak was questioned about mortgage prisoners last week and said that he was “familiar with the situation” but it was “not an easy situation to fix overnight, but there are things being looked at as we speak”.
A report by the London School of Economics published last year found the Government had made £2.4bn from selling mortgage portfolios, yet had not helped those affected.
