The UK Mortgage Prisoners action group is calling on Landmark to provide urgent help to interest-only borrowers who are approaching the end of their term.

In an open letter to the boss of the unregulated mortgage book owner, lead campaigner for the action group Rachel Neale urges the firm to show leniency to vulnerable customers.

In the letter addressed to head of operations Matthew Waller, Neale says she has contacted him on many occasions seeking support for borrowers who are nearing the end of their interest-only mortgage term, but sufficient help has not been provided.

She says: “Although you are not regulated in the same way [as active lenders], the salient point is that repossession should be a last resort, in rare cases.”

The letter continues: “After many conversations with you, I remain disappointed that there are still many elderly people being left in such despair, begging me for help, at a time in their life when they should be enjoying the fruits of their labour.”

Neale sets out cases of two mortgage prisoners in a precarious position that she says Landmark has so far failed to help.

She says that Mr and Mrs L will reach the end of their interest-only mortgage term in 22 months’ time.

Neale says Mr L has tried every avenue to find a solution with Landmark but all options he has put forward have been refused.

The couple are classed as “vulnerable” but not in hardship or seeking relief.

Mrs L is very ill and their home is set up for her health needs, so the threat of impending homeless is causing significant distress.

In a separate case another mortgage prisoner called Trevor and his wife are facing repossession after their mortgage term finished two years’ ago.

Trevor’s wife is also unwell.

The couple nearly secured remortgage, but then they incurred a CCJ from NRAM at the last minute, which meant they were rejected.

Trevor has an investment which is due to mature within a year that he believes would clear his debt, so he wants Landmark to hold off repossession until then. 

However, Neale says Trevor is still waiting to hear back.

A spokesman for Landmark Mortgages says: “Landmark is regulated by the FCA and is committed to upholding and maintaining high standards of customer treatment, applying established regulatory principles of fair and consistent treatment for all customers. 

“Landmark’s focus on fair customer treatment is documented within a well-established and robust governance framework which sets out the required conduct standards for all colleagues in their interactions with customers. 

“This includes, where appropriate, adopting a tailored, individual approach where customers are experiencing financial difficulties to ensure a fair outcome.”