My case

My name is Lester and I am facing financial oblivion for myself and my family after the Credit Crunch meant I became trapped in a mortgage that will ultimately leave me homeless.

While banks like Northern Rock were bailed out by the tax-payer their debts were sold to third parties who then trapped people like me in interest only-mortgages which means I'm now paying way above the market rate.

I've become a 'mortgage prisoner' because new stricter lending rules mean that I'm not allowed to get another deal even though if I did switch mortgages to a high street lender it'd mean my repayments each month would actually be lower and I'd be paying off the capital.

The net result is that I'm being forced to pay hundreds of pounds more every month than I should, knowing that when I retire I'll no longer be able to afford the payments and will simply have to give the keys to my house back..

They say an Englishman's home is his castle but mine has become a prison that is causing incredible stress to myself and my family. I'm really scared for what the future holds.

The solution?

A firm of solicitors has agreed to review my case along with a barrister to see if they can find a way to legally force the Government to change the rules to rescue me from being stuck in this horrendous situation where I am paying far more for my mortgage than if I was able to switch to a regular high street lender.  

If they can win my case then it should open the door for the tens of thousands of other people who are also 'mortgage prisoners' to escape this horrendous financial situation.

The background

There are an estimated 150,000 people trapped on high interest rate mortgages who are unable to switch to cheaper deals.

Tens of thousands of these 'mortgage prisoners' who took out loans before the financial crisis are trapped on lenders' standard interest rates because of changes to rules on whether they can afford repayments. 

While banks like Northern Rock were bailed out by the Government, their debts were then sold to third parties who continue to charge interest for mortgages above the market value.

The irony is that although these mortgage prisoners are told that under the new rules it is deemed they cannot afford to switch to new providers, they would actually be paying less each month if they found a new mortgage company. 

There is the added problem that many of the people stuck in this trap are only paying back the interest on their loans which means they face paying out £100,000s for a house they can never ultimately afford to own. Their only other option is to make themselves homeless.

The problem stems from the Financial Crisis in 2007 and 2008 when lending rules were tightened up.

The Financial Conduct Authority (FCA) recently recognised the problem and said it is considering seeking an industry-wide agreement to approve applications from those who took mortgages out before the crisis and are up-to-date with payments.

But this would only help a small fraction of the estimated 150,000 stuck in this position and for the rest it is seeking talks to find other 'possible solutions'.

A firm of solicitors has agreed to review my case to see if they can find a way to legally force the Government to change the rules to rescue me from being stuck in this horrendous situation where I am paying far more for my mortgage than if I was able to switch to a regular high street lender.