- Posted by: Valerie Vaz MP
- Category: News
On Monday 26 April 2021, Parliament voted on Lords Amendments to the Financial Services Bill. I have been contacted by several constituents who have asked me to support mortgage prisoners, who find themselves stuck with high-interest mortgage products through no fault of their own.
Mortgage prisoners are often unable to access alternative mortgage products which leaves them paying thousands of pounds more per year than other homeowners and, in many cases, stuck in properties that no longer suit their needs. This is a serious market failure and Amendment 8 of the Financial Services Bill sought to bring in a cap on the standard variable rate (SVR) of interest for mortgage prisoners. The proposed cap is no more than 2% above the Bank of England base rate, which is currently 0.1%.
I voted to agree with Amendment 8 in support of an SVR cap for mortgage prisoners. The Government voted to disagree with this amendment and it was defeated by Ayes: 355 – Noes: 271.