The FSA has no current plans to look at mandatory mortgage indemnity insurance for lenders on higher loan-to-value mortgages, Money Marketing understands.
The Irish government is considering a mandatory requirement for lenders to take out indemnity cover on high-LTV mortgages. A source close to the FSA says it is not considering a similar approach.
Intermediary Mortgage Lenders’ Association executive chairman Peter Williams says: “My feeling is it does have a role and if you look at other countries it is widely used to help borrowers borrow over 80 per cent. There would be a lot of work to be done between lenders and insurers to make sure there is a product that works so lenders could be confident in the scheme.”
Emba group sales and marketing director Mike Fitzgerald says: “We would welcome something that unlocks higher LTVs but I am not sure this is the answer.”