These days, ‘mortgage prisoner’ is a commonly used phrase that describes those homeowners that took out a mortgage pre 2008 (pre financial crash). Back then, eligibility rules weren’t as tight as they are today which means that renegotiating your mortgage now is much harder.. 

Worst case scenario, some of these people are trapped on interest rates as high as 9% as opposed to standard rates which currently stand at around 4% depending on where you go. 

It’s estimated that there’s around 200,000 ‘mortgage prisoners’ in the UK today which is a huge amount of people overpaying for the mortgage that they currently have. Here at Sirius Financial we consider this to be a little unfair, unjust and is rightly so, subject to the sort of campaigning that’s currently being undertaken by the financial champion Martin Lewis. 

But, rest assured, all is not lost as there are options available to mortgage holders that find themselves in this very specific situation. Some homeowners can choose to renegotiate a new rate with the existing provider or even look for another rate within the existing providers financial group (other lenders that they’re connected to). In addition, we are starting to see some lenders lowering eligibility criteria so a conversation might be a sensible next option. 

However, for some people, Equity Release is a perfectly good solution to an ever-increasing problem. If you’re over 55, then Equity Release, particularly with a Lifetime Mortgage, might be the right choice. This has the benefit of using the value in the property to pay off the existing high rated mortgage, replacing it instead with a fixed lifetime deal which provides protection from the risk of further rising interest rates.     

This might sound simple, but there are a few things to consider. An obvious one being that Equity Release deals such as this will always reduce the value of the estate that your family will eventually inherit when something happens to you. But equally, it’s your property and maybe the right thing to do is make it easier on yourself right now.  

The key to this is to speak to people that know and understand this sector from a ‘whole of market’ point of view, people like us at Sirius Financial. The advice we give is independent and can be relied on to be right for the customer first and foremost. So, if you are over 55 and have a mortgage where you’re stuck as a ‘mortgage prisoner’ on a high interest rate, then pick up the phone and speak to us, we’ll walk you through the options. 

Here at Sirius Financial we specialise in helping you find the right mortgage product. We pride ourselves on being both approachable and professional but also operate with genuine empathy and understanding.