Mortgage borrowers "unfairly trapped" on high interest rates when their lenders were nationalised are launching legal action against the companies they say are responsible. Some 150,000 homeowners are said to have been overcharged for years, unable to switch to a cheaper deal after their mortgages were transferred. One man who says he paid an extra £32,000 said it was a "disgrace". The Treasury said it was working to "remove barriers" to cheaper deals. The group legal action, brought by the UK Mortgage Prisoner Action Group, is now looking to claim repayment of the extra interest. 'Double the cost'

Many of those affected - usually having taken out mortgages in the late 2000s with Northern Rock or Bradford & Bingley - have been paying more than 5% interest on their mortgages for the past 12 years. In some cases, this amounts to more than double the cost of the best rates available on the market.

Source: BBC News Business