Perpetrators are using joint mortgages to plunge survivors into “debt and homelessness”, according to a report by the charity Surviving Economic Abuse.
It suggested that as many as 750,000 have been affected by this type of abuse.
The report stated that perpetrators are causing financial harm by refusing to sell up, pay their agreed share of the mortgage or agree to new mortgage terms.
The mortgage-based abuse can lead to victims being trapped by “dangerous abusers”, while those who flee can find themselves forced into housing insecurity and debt due to the abuse.
The charity is urging the Government to set up a cross-Government task force on economic abuse with financial services, legal, and domestic abuse experts.
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It wants them to strengthen protections to prevent joint mortgages from being used by abusers.
Under current laws, both mortgage holders are jointly and separately responsible for the whole mortgage debt, and any changes to the terms.
These include switching interest rates or removing one party from the mortgage, which require both parties’ consent.
This stands even in domestic abuse cases.
‘Hidden crime’
More than 1,000 women in the UK who currently have a joint mortgage or have had one in the last two years were surveyed on behalf of the charity.
They were asked if they had experienced mortgage-related abuse from a current or ex partner.
Among the women who experienced this form of abuse, 78% felt unable to leave their partner or an unsafe living arrangement due to abuse through the joint mortgage.
A total of 49% had to cut back on utilities or go without essentials, such as food, clothing, or toiletries, to cover monthly mortgage repayments.
Meanwhile, 89% experienced negative mental health impacts because of the abuse, such as anxiety, depression, panic attacks, or suicidal thoughts.
Sam Smethers, interim chief executive of Surviving Economic Abuse, said: “Mortgage abuse is a hidden crime that’s destroying the lives of hundreds of thousands of survivors.
“Right now, domestic abusers are using joint mortgages to cause economic devastation by refusing to pay their agreed share, agree to new terms, or sell up.
“Being forced to foot the full mortgage bill makes it near impossible for survivors to flee to safety.
“For those who do escape, they remain tied to the abuser, who can plunge them into mountains of debt.”
‘Only an urgent law change can stop abusers’
Smethers continued: “Survivors are doing everything they can to make ends meet – cutting back on food, turning off the heating, and borrowing money to keep up with repayments.
“But right now, banks are limited in what they can do to stop abusers from causing a lifetime of debt and homelessness for survivors.”
Smethers called on banks to do more to support survivors, saying: “Only an urgent law change can stop abusers from destroying lives.
“We urge the Government to set up an economic abuse task force to prevent abusers from weaponising joint mortgages.
“It must also make sure tackling economic abuse is at the heart of its mission to halve violence against women and girls in a decade.
“It’s the only way to ensure survivors and their children can have a safe home.”
The report is also calling for the financial services regulator to clarify and strengthen regulations and guidance for firms to avoid causing foreseeable harm to customers experiencing such economic abuse.
The report, called Locked into a mortgage, locked out of my home, was funded by Abrdn Financial Fairness Trust and the Joseph Rowntree Charitable Trust.
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Domestic abusers use joint mortgages to plunge partners into ‘debt and homelessness’
