Mortgage Prisoners
The Truth About Mortgage Prisoners By The Joe Blogs Show
What Is a Mortgage Prisoner?
A mortgage prisoner is someone who is trapped in an expensive mortgage they can’t escape — not because they’ve done anything wrong, but because of how their loan was classified and sold on after the 2008 financial crash.
Thousands of borrowers across the UK are in this position. Many are still paying inflated interest rates of 7%, 8%, even over 9%, while banks offer new customers better deals.
So why can’t you switch? Because you’re stuck in a system that treats your mortgage as part of a so-called “bad book” — even if you’ve never missed a payment in your life.
Northern Rock, the Crash, and How It Affects You
If you had a mortgage with Northern Rock before 2008, here’s what likely happened:
Northern Rock collapsed during the financial crisis.
The government stepped in and split the mortgage book.
The “good” part went to Virgin Money.
The “bad” part, including interest-only and Together loans, went to a holding company.
That “bad” book — often perfectly fine borrowers — was eventually handed over to closed-book lenders like Landmark Mortgages.
A closed-book lender doesn’t offer new mortgages. It only collects on old ones. That means you can’t remortgage with them, and often can’t switch away because of outdated lending criteria or red tape.
Why You’re Not to Blame
Let’s be crystal clear:
You didn’t choose to be in a closed book.
You’re not “high risk” if you’ve paid every month.
You were promised the option to remortgage — but that option disappeared when the lender changed.
This is financial injustice in plain sight. And it’s been allowed to go on for far too long.
What Needs to Change
Fair access to remortgaging for mortgage prisoners
Regulation on excessive interest rates charged by inactive lenders
Recognition that treating good customers unfairly is financial bullying
What You Can Do
Know your rights – you can still raise complaints to the Financial Ombudsman, FCA, your MP, and beyond.
Share your story – your voice matters, and the more we speak up, the more pressure builds.
Use our Joe Blogs A–Z Guide on how to stand up to financial bullying (available now on our site).
Final Word from Joe Blogs
You were never the problem. The system failed you. But together, we can push for the fairness and freedom you deserve.
We see you. We stand with you. And we’re going to keep making noise until justice is done.
The Joe Blogs Show: Sticking up for people in this day and age.