The Association of Mortgage Intermediaries (Ami) has stressed caution over the move to allow borrowers on mortgage payment holidays to perform a product transfer at the end of their term
The Association of Mortgage Intermediaries (Ami), has stressed caution over the move to allow borrowers on mortgage payment holidays to perform a product transfer at the end of their term.
The industry-wide agreement was announced earlier today by UK Finance, paired with news that one in seven mortgage holders had been offered a payment holiday as a result of Covid-19.
According to UK Finance, over 1.6 million mortgage payment holidays have been utilised by homeowners affected by Covid-19.
However, borrowers should not be led to think that PTs are the “only solution”, warns Ami.
The association says it endorses a statement made by UK Finance senior adviser Jackie Bennett OBE in a blog post on the UK Finance website published today, which reads: for those who want help selecting the right product for them, advice is widely available from both mortgage brokers and lenders.
Ami chief executive Robert Sinclair says that the PT support announcement is positive, but adds that it is “inward-looking”, stating that, “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, he continues.
Sinclair adds: 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.