Home owners trapped in rip-off high rate mortgages, MP's call for government action
Charles Kelly BA CMgr FCMI
Property Investor, Wealth Coach, Podcaster, Author and Speaker.
Home owners trapped in rip-off high rate mortgages, MP's call for government action
British MPs are urging the government to intervene and help 170,000 "prisoners" who are trapped it mortgages with high interest rates.
Many of the borrowers are lower paid frontline workers, like nurses and hospital workers, who have no choice but to pay up to double the interest they would be charged on a normal competitive mortgage.
They cannot re-mortgage to a cheaper deal offered by other lenders due to stricter affordability rules brought in by the Bank of England after they borrowed the money.
MPs are now calling on the government to order regulators to investigate the profits firms make from the borrowers.
They want the Competition and Markets Authority (CMA) and the Financial Conduct Authority (FCA) to consult and introduce a cap on so-called “standard variable rates”, which will help all borrowers coming out of fixed or discount rate mortgage deals.
Hundreds of thousands of borrowers are unable switch mortgages because their loan is too high against the value of their home or because they are now too old to re-mortgage. This leaves them at the mercy of their lender which can legally charge whatever rate they like.
The FCA reformed the affordability rules last October to allow lenders to help mortgage prisoners with cheaper home loans, but no lenders have changed their criteria.
Borrowers with bankrupt lenders, such as the Northern Rock, are prisoners to the new owners who are neither offering competitive products or looking after their borrowers.
Some borrowers have been paying between 6% and 9%pa after coming off initial fixed rates several years ago.
Self-employed have only days left to apply for government grant phase 1.
If you’re eligible and your business has been adversely affected you must make your claim for the first grant on or before 13 July 2020.
This scheme is being extended. If you’re eligible for the second and final grant, and your business has been adversely affected on or after 14 July 2020 you’ll be able to make a claim from 17 August 2020. You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant. Find out more about the extension to the scheme.
In this Money Tips Podcast episode:
1. Nationwide starts lending again to riskier home buyers
2. Travellers arriving in the UK from dozens of countries no longer need to self-isolate
3. Rules relaxed for arrivals from more than 70 countries and British overseas territories
4. Beauty salons and “open air gyms” allowed to reopen with more reopening to follow
5. Eat out to help out meal deal scheme launches in August to help hospitality sector
6. Stamp Duty slashed until 31 March 2021 by raising the threshold to 500,000
7. Chancellor Rishi Sunak keen to boost the property market and “build build build”
8. New planning rules will open up more opportunities to make money in property
9. Opportunity is everywhere for everyone, especially in property! But you have ACT!
10. Even the 'Secret law of attraction' requires you to get off your ass and TAKE ACTION!
11. Homeowners will get vouchers of up to ￡5,000 for energy-saving improvements
12. The poorest will receive up to ￡10,000 in ￡2 billion energy saving grant scheme
13. Will your job be one of millions phased out by automation, innovation and AI?
14. You don’t need your own money to create a second income in property
15. Time to your economy or Uconomy started whatever the economy is doing!
16. You can create a second income during the lockdown…and come out stronger
17. Learn how to make money from property without deposits, mortgages or cash
Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn’t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period.
Are you ready to adapt to the new economic model?
As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution?
By Charles Kelly, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.
There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon https://bit.ly/2MoneyBook.
If you’d like further information on how to survive the crisis and even quit the rat race, email me at [email protected] or send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com
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