Single mum forced to pay £91K extra on mortgage after getting trapped on high rate

A single mum-of-four has been forced to pay over £91,000 extra on her mortgage due to being trapped on high rates. Rebecca Wendel, a 46 year old self-employed hairdresser says she is a ‘mortgage prisoner’ paying a whopping 9.79% interest.

She took out her loan before the financial crisis with Northern Rock, a lender that later failed. Her loan was then sold to a firm that isn’t a mortgage lender and can’t offer her a cheaper deal.

Now, she’s often turned down for cheaper mortgages elsewhere because she doesn’t meet the strict borrowing criteria set in 2014. Rebecca’s monthly payments have shot up to £2,150, a big jump from £1,049 in August 2022 when she was paying 6.75%.

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In contrast, the average two-year fixed mortgage rate today is 5.78%, while the average five-year fix is 5.34%, says Moneyfacts. There are over 200,000 mortgage prisoners in the UK, and it’s estimated that the Government has made more than £2.4 billion from selling these loans.

Harcus Parker, a law firm representing over 10,000 mortgage prisoners, has secured a trial at the High Court against TSB to determine if the bank financially exploited its Whistletree mortgage prisoner customers, reports the Mirror.

A law company thinks that if they win a big court case, it could help lots of people who are stuck with bad mortgages. Ms Wendel is not a customer of TSB bank, but she’s really interested in what will happen because it might help her and others like her.

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