The Association of Mortgage Intermediaries (AMI) has welcomed today’s announcement from UK Finance that product transfers (PTs) can be taken by those on mortgage holidays but warned borrowers that they should take mortgage advice so that they understand the options available to them.
AMI said it supports lender flexibility on product transfers in the current climate, however it added that consumers should not be led to think that this is the only solution.
The association is concerned that this approach steers consumers down one path and raises the question whether this approach is in the customers’ best interests.
UK Finance, in a blog released today, on this topic comments that “for those who want help selecting the right product for them, advice is widely available from both mortgage brokers and lenders”.
This is a view which AMI fully endorses.
Robert Sinclair (pictured), chief executive of AMI, said: “Whilst this support for consumers is positive and avoids the consumer falling onto a lender’s SVR, it is inward-looking as it makes no consideration as to whether the deals offered are appropriate.
“Some customers may find that if they revoke their mortgage payment holiday and re-mortgage, it could result in a more suitable outcome. They also may not be aware of how a specific deal compares to others in the marketplace.
“As a result of COVID-19 many more consumers may be vulnerable, so it is vitally important that they explore their options. Whilst a PT may seem the most straightforward option, consumers should talk to a mortgage broker as they are well placed to assess individual circumstances”