"Despite the assurances from lenders, lender trade bodies and our regulator, we continue to hear evidence for our firms of a continuing problem."
- AMI
Of the brokers surveyed by the AMI, 76% said that under 10% of their clients were mortgage prisoners.
18% estimated that between 10% and 20% of their clients are mortgage prisoners but around 6% of brokers said over 20% of their clients cannot get a new deal.
Robert Sinclair, Chief Executive of the AMI, said: “Despite the assurances from lenders, lender trade bodies and our regulator, we continue to hear evidence for our firms of a continuing problem. Whilst interest rates remain low, the issue is unlikely to surface significantly. However as soon as rates rise we have no doubt that what is a trickling stream will become a flood and the industry will have to address matters.
"This covers a range of issues including weak loan to value, prior self certification, interest only, self employed and those with credit blips but a good mortgage payment record. We hope that the supervision teams at FCA begin to take this seriously and look properly at the extent of this issue and whether all lenders are acting in the best interest of all their mortgage customers.”
