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Mortgages are being used as a “weapon” by domestic abusers against their current or former partners, plunging people into debt and homelessness, a charity is warning.
Survivors are left with mountains of mortgage arrears, destroyed credit ratings, homelessness and a lifetime of housing and economic insecurity, charity Surviving Economic Abuse said.
One woman described how she remains in a “mortgage prison” – despite having left her former husband more than a decade ago.
The charity said that, in general, perpetrators are refusing to pay their agreed share of the mortgage, agree to new terms or sell up.
This traps people with their abusers, while those who flee are forced into housing insecurity and debt because of ongoing economic abuse.
More than 1,000 women across the UK who have had a joint mortgage in the past two years, surveyed by Opinium on behalf of the charity, were asked about whether they had experienced mortgage-related abuse from a current or ex-partner.
One in eight (12%) cited at least one aspect of abusive behaviour related to the mortgage from a partner or ex-partner.
Over three-quarters (78%) of those who experienced abuse felt unable to leave their partner or an unsafe living arrangement due to abuse through the joint mortgage.
Nearly half (49%) had to cut back on utilities or go without essentials, such as food, clothing or toiletries, to cover monthly mortgage repayments.
And nearly nine in 10 (89%) experienced negative mental health impacts because of the abuse, such as anxiety, depression, panic attacks or suicidal thoughts.
The report, Locked into a mortgage, locked out of my home, funded by abrdn Financial Fairness Trust and the Joseph Rowntree Charitable Trust, said financial services firms should boost their support for customers and take steps available under existing guidelines to make it harder for perpetrators to use joint mortgages to cause economic harm.
It said regulations and guidance for firms should also be strengthened, to avoid causing foreseeable harm to customers experiencing economic abuse through perpetrators’ misuse of joint mortgage products and services.
One woman told the charity her former husband remains on the joint mortgage, more than a decade since she left him.
She said: “I can’t sell the property without his permission and, at any point, he can use his position to stop me from making mortgage repayments by withholding child support payments. Me and my children remain trapped in a mortgage prison with no way out.”
The report explained: “Joint mortgages are a form of secured lending typically with joint and several liability.
“This means that under current laws both people are jointly and separately responsible for paying the whole debt, whether they live in the property or not, and any contractual changes to the mortgage require both parties’ consent.”
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.
“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.
“While banks can do more to support survivors within current rules, 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.”
Fiona Turner, head of vulnerability policy at UK Finance, said: “Economic abuse is a horrendous act that has long-lasting effects on victim-survivors.
“The financial services industry is committed to supporting impacted customers, and there is a wide range of help available which is tailored to the individual’s circumstances.
“Surviving Economic Abuse’s report highlights examples of how firms are supporting their customers and we will continue to work with members to share best practice.
“However, we know that more needs to be done with support from regulators and government.
“The separation of joint debt such as mortgages can be very complex, especially without the consent of both parties.
“UK Finance has recommended that mortgage lenders review their policies to allow more flexibility when a victim-survivor is dealing with issues around an existing joint mortgage as lenders must currently show an equal responsibility to both borrowers.
“We also believe that a Government taskforce is needed to address the difficult legal issues that lenders must navigate when helping customers achieve financial independence.
We will continue working with Surviving Economic Abuse, our members, and other stakeholders to improve outcomes for these customers.”
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.”