There has been no systemic mis-selling over interest-only, said Association of Mortgage Intermediaries director Robert Sinclair at the Expo today, warning any claims managers in the room not to be “silly.”
In his opening remarks in the AMI Seminar hall today, Sinclair said this would mainly be an issue for lenders, not intermediaries, adding “I just don’t believe people have been mis-sold this product.”
In the afternoon, Lynda Blackwell, head of conduct at the FSA agreed, saying interest-only mortgages cannot be read across to the scale of the Payment Protection Insurance scandal, which lenders have provisioned almost £12bn for so far.
“Customers always know exactly what they are taking out. The lender also sends that customer a statement each year outlining their loan balance.
“When you buy an interest-only loan, you are making a positive choice and few customers were unclear on what the terms were when they bought that product,” she said.
