It calls for greater support for borrowers trapped in high-cost loans, particularly those aged over 50
Later life lender LiveMore has called on the mortgage industry to take urgent action to support mortgage prisoners – borrowers stuck in high-interest home loans with no viable options to remortgage.
The company’s statement follows the release of a critical 358-page report on Tuesday by the All Party Parliamentary Group (APPG) on mortgage prisoners, which criticised the Financial Conduct Authority’s (FCA) handling of the issue. The report highlighted the severe financial and emotional toll on more than 200,000 people across the UK who remain unable to refinance their mortgages.
Leon Diamond (pictured), chief executive of LiveMore, described the APPG findings as a stern reminder of the seriousness of the issue.
“As hard-hitting as the APPG report is, it underscores how dire the situation is for thousands of mortgage prisoners,” Diamond said. “It’s incomprehensible that so many remain trapped, facing financial stress, the threat of repossession, and devastating impacts on their physical and mental health. Tragically, the report even links these pressures to cases of suicide.”
LiveMore reiterated its commitment to helping older borrowers who may view themselves as mortgage prisoners. Diamond said the company focuses on providing flexible lending options for people in their 50s and beyond, particularly those struggling to meet standard affordability criteria.
“For too long, the over-50s have been let down by lenders,” he said. “Consumer Duty has shifted the responsibility on to financial services providers to deliver good outcomes for customers. It’s crucial that lenders step up and offer solutions.”
A significant issue for mortgage prisoners, according to LiveMore, is the automatic transfer to high standard variable rates (SVRs) when borrowers reach the end of their mortgage term, especially for those over 50.
Diamond urged brokers to take advantage of tools like the LiveMore Mortgage Matcher, a digital platform that works alongside the company’s affordability calculator to help identify suitable products for borrowers.
“We’re here to help borrowers who feel trapped, as well as the brokers supporting them,” he said. “Our focus is on providing financial solutions that allow older homeowners to achieve their goals or simply improve their quality of life.”
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