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Flexi Catmarks too rigid for some lenders

The proposals to Catmark flexible mortgages has split the industry with some lenders claiming that defining “flexibility” is too simplistic way to solve cons- umer confusion.

Lenders including Bank of Ireland and Platform Home Loans hit back at the proposals after the Council of Mortgage Lenders and the Government launched a study into the flexible mortgage market, as revealed recently by Money Marketing.

The findings are due to be published in a report next summer.

The study will look at defining flexible mortgage products and will examine whether there should bea minimum standard set for a flexible product.

Sun Bank is also undertaking its own research into the market after raising the issue with the CML and calling for the council toset standards for flexible mortgages.

Bank of Ireland head of sales Roland McCormack says: “I think that defining flexible mortgages will restrict the ability to design future products.

“Flexibility means different things to different people and a one size fits all approach is inappropriate.”

The proposals for flexible mortgage standards will not serve the non-conforming market well, says Platform Home Loans sales and marketing director Guy Bachelor.

He says: “We will probably bring out a flexible mortgage but we might not want an all singing all dancing product as there will be a greater element of risk involved for us.

“For credit-impaired customers, we might want to limit flexibility when it comes to drawing down funds.”

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