Homeowners launch mortgage prisoner legal claim against TSB

Law firm Harcus Parker is battling a number of banks including TSB, which it claims have caused borrowers from collapsed lenders to become mortgage prisoners

mortgage in cage
(Image credit: Getty Images/solarseven)

Thousands of homeowners took TSB to court today in the first case of its kind that highlights the plight of mortgage prisoners.

The claimants, who took out mortgages with Northern Rock before the 2008 financial crisis, claim they have become mortgage prisoners after TSB purchased their loans from the government in 2016 and began charging a standard variable rate (SVR) at approximately double what its other customers pay.

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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.