10,000 'mortgage prisoners' sue bank over high interest rates

HOMEOWNERS trapped with high interest rates from lenders after the Northern Rock collapse have new hope for justice.

- Chris Riches

The 2008 financial crash left an estimated 200,000 "mortgage prisoners". Their accounts were switched to providers who allegedly charged often higher than market average interest rates.

While most people - until recent inflation-tackling rises - have enjoyed less than 2% interest mortgage rates for a decade, many were paying up to 10% interest.

But stricter lending criteria since the banking crisis has meant that these homeowners have been unable to switch to better deals.

Collapsed

TSB bought £3.3billion of Northern Rock mortgages when the bank collapsed and placed many with its Whistletree brand.