Single mum from Rochdale faces losing home in 'mortgage prisoners' scandal

• ITV Granada Reports journalist Emma Sweeney met a homeowner from Rochdale who says she's on of the country's many so-called 'mortgage prisoners'

A single mother trapped in an interest-only mortgage is facing a desperate race against time to keep hold of her home.

Tina Hogarth, from Rochdale, says she has suffered "mentally, physically and emotionally" after her £186,000 mortgage, taken out in 2007, was transferred by the government to TSB Whistletree following the collapse of Northern Rock, the bank that lent her the money.

She says: "There were some times when I thought everyone would be better off without me, my son, because I couldn't handle the thought of having no home for him. And that's been really difficult.

"I've got two years and 10 months left, I owe £186,000 at the moment, and that's still going to be the same amount in two years and 10 months."

Tina’s problems began when - as part of a bid to help grow her business - she was advised to use the equity in her home to remortgage in 2007.

But following the collapse, and up until two years ago, she found herself in a deal with rapidly rising interest rates well above the bank's normal standard variable rate.

With rules around borrowing now much tighter it wasn't possible for her to just go to another lender, meaning that she was trapped in the existing deal.

Although she did manage to get onto a more standard variable rate two years ago Tina says with her full mortgage still outstanding it’s too little too late.

The credit crunch not only threatened her home but took her business.

"I went from being a really successful businesswoman, owning apartments, having my own kitchen showroom and then back in 2010 I basically lost everything," she said.

"I went bankrupt and my son was literally nine-months-old at the time.

"They should never have lent me that money because the affordability would never have stacked up."

Tina has recently started to try to pay off £1,000 of the outstanding loan amount per month to reduce the balance, and is exploring other options of raising capital.

Tina said: "I’m stuck between a rock and another rock, unless I go and get a job for £100,000 a year."

There is now a glimmer of hope for Tina though. Nearly 16 years after Northern Rock’s collapse, Tina and 2,500 other so called 'mortgage prisoners' are set for a High Court battle against TSB bank in their long-running £800m battle for justice.

They say they have been stuck on exorbitant mortgage deals since their loans were sold by the government in the wake of the financial crisis of 2008, and finally their case is being heard in a four-day trial at the High Court in London.

Damon Parker, of Harcus Parker Solicitors the firm representing the 'prisoners' says: "It's caused all sorts of hardships, it's caused mental health problems, marital problems, people's homes have been repossessed, that's the human story."

This is a major milestone in the ongoing scandal, which has seen some borrowers forced out of their homes or on the poverty line in an effort to keep up with spiralling repayments.

Harcus Parker argue TSB - which bought £3.3bn of loans and placed them under its "Whistletree" brand, deliberately stopped the 'mortgage prisoners' from accessing cheaper, more affordable rates because they knew they would be unable to switch providers.

In the past year, near-monthly rate rises have seen some 'mortgage prisoner’s' rates leap from 4.5% to double figures - pushing homeowners to the brink.

The court’s decision is expected in the autumn, and if they are successful, it will set the terms for further action by the borrowers.

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