Rachel Neale, Lead Campaigner, has written to Economic Secretary to the Treasury, John Glen, and the Chancellor, Rishi Sunak. In the open letter, Neale urged the government to ‘stop talking’ and to work towards finding ‘real solutions’ instead of hiding behind red tape.
Speaking to Mortgage Solutions, Neale said that lenders are becoming more aggressive while she continues to receive around 10 messages a day from mortgage prisoners who desperately need help. In the letter Neale has told the government that mortgage prisoners are ‘drowning under the financial pressure’ which has been caused by selling their homes to ‘vulture funds’ who charge them triple the market rate for their mortgages. People have been ‘pushed to the brink’ which is seriously impacting on their mental health:
“This week in your broken society we have had calls from people wanting to genuinely kill themselves over the basics in life, unable to heat their home, buy food for their children or send them to school on your public transport caused by an inflated mortgage payment that impacts every aspect of life. Who pays for this, not your councils that have no resources, not the foodbanks because they’ve used up all their tokens, and not charities who turned us down as they’re too overwhelmed to help?”
The open letter comes in the wake of communications between Martin Lewis (Money Saving Expert) and John Glen in which the Economic Secretary to Treasury stated that any proposals put forward to help mortgage prisoners would only be considered if (amongst other clauses) this did not present a ‘moral hazard’ and delivered value for money to the government. In the letter, Neale told the government that they had created a ‘moral hazard’ by selling people’s homes to private equity firms (who do not pay tax in the UK) and that the government had already pocketed a £5 billion profit off the backs of the mortgage prisoners who they have squeezed of every last penny over the last 12 years:
“[I]t is because of the Moral Hazard you have created on us that we sit here losing our homes, stopping people killing themselves, and all chipping money in to help others pay for food and clothing. I find your comments extremely insulting, disrespectful and actually it shows a lack of empathy and dignity, by treating us as a group of undeserving citizens of your People’s Government”
The full letter can be read belowa pre-budget letter to the people's government_20200309