Member

The amendment before us addresses the three failures that together created mortgage prisoners. The first is that statutory rights did not travel with the loan; this would be fixed by subsection (2) of the new clause proposed in the amendment. The second failure is that SPVs and inactive lenders have continued with predatory pricing, which would be fixed by subsection (3). The third failure is that SPVs claimed that they were not the creditor; subsection (4) would fix this. Subsection (3) would also place a limit, to be determined by reference to a market proxy determined by the FCA, on interest rates, fee structures or other pricing terms. All this is prospective; none of it is retrospective. It is time that the mortgage prisoner problem had some real help, and this amendment sets out how to do that for the future.