Those house owners looking to remortgage and take advantage of the many benefits provided by such a mortgage product need to check on the latest lending criteria put into place last April. These criteria might stand between gaining approval on a remortgage application. Families are finding new lending rules a huge roadblock to gaining approval and these rules are stranding them in an expensive mortgage.

Remortgage approvals fell by a total of 21,000 during the year 2014. According to the Council of Mortgage Lenders, this is the lowest total since 1997. Many home owners are staring a much more expensive mortgage product in the face with no choice but to accept it and live on.

Mortgage broker Ray Boulger, of John Charcol, commented on the latest situation many house owners find themselves in, saying: “You’d expect to have seen a big pick-up in the remortgaging market because of the low fixed-rate deals available, but we haven’t. This is partly because of a rise in the number of “mortgage prisoners”.

“These people may want to remortgage to a cheaper fixed rate but, because they do not meet their lenders’ new requirements, they are struggling.

“The banks will deny this is to make more money but the effect is the customer is stuck on their more expensive standard variable rate.”

Paula Higgins, of the campaign group HomeOwners’ Alliance, commented on the so-called mortgage trap, saying: “Many people are in a mortgage trap. When they first moved house and took out the mortgage, they were told they could afford it. But now, when they try to get a new deal they are told they can no longer afford that loan, despite keeping up with the repayments.

“The consequence is that they are paying more than they should be because they are stuck on a default rate.”