Lord Sharkey de Lib DEM Peer has written to the Serious Fraud Office (SFO) to request an investigation into the treatment of mortgage prisoners by MortGage Agency Services Number 5, which was part of the cooperative banking group.
Mortage Agency Services Number 5 (MAS5) increased the standard variable rate (SVR) four times during the period 2009 to 2012. It claims that each of these increases was necessary to display changes to the costs of financing the mortgages.
A study by the Financial Ombudsman Service (FOS) showed that “the evidence does not show that there were changes in the total costs that MAS5 was liable to pay for the funds used” and “as a result of the changes in the SVR MAS5 made between 2009 and 2012 – which jointly added 2.76% to the SVR – were not made for reasons permitted by the contract “. have risen “
The conclusion of FOS seemed different from what MAS5 customers were told. In February 2011, for example, the letter from MAS5 said that the SVR “was” a direct reflection of the increased costs of financing your mortgage loan “. In April 2012, the letter said that the SVR increase was made after “Careful consideration” and that the “rate we have been charged for financing your mortgage has increased considerably”.
SVR explanation
Lord Sharkey now states that there must be a complete investigation through the SFO into the behavior of MortGage Agency Services Number 5 and the Cooperative Banking Group and the statements they have made to customers to justify the increases of the SVR.
During the debate about the second reading of the Inquiry Bill of the mortgage prisoners, Lord Sharkey will also ask the new Labor Government when they intend to respond to the LSE report that was funded by Martin Lewis and a series of presented proposals for help mortgage prisoners.
After the general elections of 2024, Lewis wrote to Rachel Reeves to ask the new government to respond to the LSE report. Lewis said the “financial, mental and physical toll of those who were trapped”, because mortgage prisoners had led to “recovery, hardships and, terrible, suicide”. Until now, the government has not responded publicly to the letter.
Lord Sharkey said: “We need an investigation so that we can allocate responsibility and investigate the errors within the government and supervisors that have caused the very bad situation for thousands of mortgage prisoners.
“We need an investigation to identify and correct any failures at the FCA and the FOs and to correct any justice of justice.”
He added: “Above all, we need a study to develop and implement solutions for the current generation of mortgage prisoners; To help them stay in their homes and to prevent them from being exploited by Gierfonds. “