Advisers working pro-bono have told FTAdviser of pensioners receiving their first foodbank parcel as they "haven't been able to figure out any alternative options' as their mortgage repayments keep going up.
Another mortgage prisoner couple - known to FTAdviser as Mr & Mrs L - said they are now on 8.13 per cent (£1,534.03 in total) a month.
They are expecting their provider - first GMAC in 2006, then MAS5 in 2007 and The Co-Operative Bank since 2009 - to apply the next rate increase if the Bank of England raises the bank base rate in May.
It is sad to see some of the situations these people find themselves in.Sebastian Reimann, Virtus
A spokesperson for The Co-operative Bank, said: "When the BoE makes announcements to change Base Rate, the bank considers how it responds to that change and a number of factors inform its decision.
"The bank continues to review the pricing of its full mortgage range across all brands, including securitised/closed book mortgages and will communicate with customers should there be a change to mortgage pricing as a result of a movement to Base Rate."
Mrs L told FTAdviser she has also gone to a foodbank to help herself and her husband - who has been in serious ill-health for many years - as "there is nothing left to trim from our budget".
Lack of forbearance?
The Ls, who have no option but to move into social housing from the family home which has become a "nightmare" for them, said: "It's difficult to say what our next course of action will be.
"There appears to be no form of forbearance with MAS5 without it impacting our credit rating and we need to remain clear for social housing options and private rentals."
This is despite having made it known to MAS5/The Co-operative Bank in 2016 that her husband was a vulnerable client and unable to work.
We conduct a detailed financial assessment with the customer who is in financial difficulty then list what options may be available so they can choose how to proceed.The Co-operative Bank
According to The Co-operative Bank, it has a "number of forbearance measures in place and various options to help vulnerable customers, and customers who are unable to make their monthly mortgage payment".
The spokesperson added: "The type of support we offer is determined by the customers’ circumstances and whether, with our help, the customer can manage their mortgage on a sustained affordable basis.
