"The sale did not impact customers’ terms and conditions, with Topaz continuing to service every loan in line with the terms and conditions that borrowers signed-up to.
"As an administrator, Topaz works hard to support customers who are experiencing financial difficulties, particularly in the present economic climate, and frequently liaises with mortgage holders to help them better understand their options and switch to other products.”
The MP offered a more personal example of how being a mortgage prisoner can affect people’s lives, recounting that a constituent of his was approaching the end of a 25-year term on their mortgage.
He stated this constituent was forced into the interest-only plan just a few years after they began to make repayments.
Consequently, they now risk losing their family home of a quarter of a century unless they can come up with the full amount owed to Heliodor.
Docherty-Hughes said: “People have ended up paying what is essentially rent to a vulture fund which almost certainly knows it will be able to acquire the property at the end of the term.
“Topaz will have been licking its lips I’m sure at a deal that is basically guaranteed to be paid twice, first through monthly payments and secondly when Topaz Finance sells their home from under them in 2029 at a healthy profit.”
Docherty-Hughes added: “There is nothing we can do to make up for what UK mortgage prisoners calls the ‘extortionate interest rates, severe financial restrictions and mobility and mental and physical issues caused by this government-made scandal’.
“However, that does not mean we should not try.”
The second reading of the bill is expected on June 14th.
tom.dunstan@ft.com
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