Government must do more to give mortgage prisoners hope of escape

Many homeowners are trapped with vulture funds and cannot find a way to switch lenders

Thousands of homeowners pay their mortgage in full every month but cannot switch lenders as they don’t meet the banks’ affordability tests. Photo: Getty

Mark Coan

Our most recent analysis shows that there are still more than 60,000 mortgage holders currently trapped with vulture funds, unable to escape as the traditional banks won’t accept them.

As vulture funds don’t offer standard fixed rates, some of these customers are now facing interest rates as high as 10pc due to recent ECB rate hikes, forcing almost a thousand more of them into arrears since the hikes began in July 2022.

Latest Comment