MPs call for a ban on ‘mortgage prisoners’ being sold off to ‘vulture funds’ by their banks
- Tory MP Charlie Elphicke led a debate last week on ‘mortgage prisoners’
- Elphicke called for an ‘urgent inquiry’ by the Treasury and Bank of England
- Tory MP Kevin Hollinrake suggested a ban on sales to unregulated firms
MPs have called for a ban on British banks selling mortgages and business loans to so-called vulture funds following a Mail on Sunday investigation.
Charlie Elphicke, Tory MP for Dover, led a debate last week on ‘mortgage prisoners’ stuck on high interest rates after their home loans are sold to ‘inactive lenders’.
Elphicke called for an ‘urgent inquiry’ by the Treasury and Bank of England and, along with Tory MP Kevin Hollinrake, suggested a ban on sales to unregulated firms.
Charlie Elphicke, Tory MP for Dover, led a debate last week on ‘mortgage prisoners’
Shadow Education Minister Gordon Marsden praised the MoS investigation, which highlighted the plight of mortgage holders and small business owners whose debt has recently been sold by UK banks and the Government to US private equity firm Cerberus.
Elphicke told The Mail on Sunday: ‘The Treasury must stop and ban any future debt sales to ruthless and unregulated ‘vulture funds’. New measures are also needed to help the SMEs that are vulnerable to asset-stripping by these funds.’
Cerberus declined to comment.