'My life has been destroyed': Warning of domestic abusers weaponising joint mortgages against 750,000 UK women
11 September 2024, 05:44
One in eight UK women who held a joint mortgage in the last two years experienced economic abuse from a current or former partner – equivalent to over 750,000 victims, according to a new report.
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The study, by charity Surviving Economic Abuse, describes how perpetrators are causing harm by refusing to pay their agreed share of the mortgage, agree to new terms, or sell up.
“This is a form of abuse that is putting survivors at risk of harm and in some cases even being killed by simply making it harder for them to flee a dangerous abuser,” Deidre Cartwright, the charity’s public affairs and policy manager, told LBC.
“The financial ties to them through the joint mortgage means that the abuser can still plunge victim survivors into mountains of debt. They can destroy their credit rating and leave them relying on food banks to try and keep a roof over theirs and their children's heads.”
Sarah - which isn’t her real name - lost her home after her ex-partner stopped paying towards their joint mortgage, and refused to authorise a switch to a cheaper fixed-rate option.
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When the payments increased by £400 per month, the mortgage fell into arrears as Sarah’s mental health sharply declined.
Holding back tears, she told LBC she will never financially recover from the abuse: “My life has been destroyed by that man. He should be behind bars.”
Despite Sarah explaining her situation to the lender, the bank wouldn’t let her adjust the mortgage without the abuser’s consent.
As interest rates rose, the bank began repossession proceedings. Sarah was so distraught that she informed the lender that she felt the only way out was to take her own life.
In response, the bank informed her that only after receiving a letter from her consultant GP confirming that she was suffering from PTSD, depression, anxiety, and suicidal ideation, they would pause repossession proceedings based on protections within the 2010 Equality Act.
The abuser finally sold the property for £100,000 less than it was valued, costing Sarah over £50,000 in reduced equity, which she has used to pay off her debt.
Now in her sixties, she says she has no chance of getting back on the housing ladder, and struggles to pay her rent.
Under current laws, both mortgage holders are jointly and separately responsible for the whole mortgage debt, and any changes to the terms, such as switching interest rates or removing one party from the mortgage, require both parties’ consent.
“Our report found that there's a lot more that banks can do to support survivors under existing guidelines and stop abusers from using a joint mortgage to cause harm,” says Cartwright.
“However, they are limited by what they can do due to their obligations to both mortgage holders under current contract law and that's why our report is also calling on the government to step to step in and strengthen the law to stop abusers by, in the first instance, setting up in Economic Abuse task force.”
A government spokesperson said: “We recognise the devastating impact financial and economic abuse can have on victims, which is why this year we are providing £200,000 to Surviving Economic Abuse to raise awareness and support victims.
“The numbers in this report, which we are now considering, are stark and show how vital our mission to halve violence against women and girls in a decade is.”
The Financial Conduct Authority said: "The damage wrought by domestic financial abuse can be life changing. Many firms are already on the lookout for signals so they can point victim-survivors to the right support.
"We will continue to work with industry, government and charities to raise awareness of this issue and to encourage the sharing of examples of good practice, so all firms learn from the experiences of others."
Those feeling distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK
