Specialist mortgage lenders are calling upon the Government to abolish compulsory insurance and make redemption charges clearer.
Lenders made their views known at the second of a series of mortgage “summits” with trade and industry secretary Stephen Byers.
Byers met nine lenders who argued redemption penalties should be expressed as a cash sum and should not extend over discounted or fixed-rate offer periods. They also recommended redemption penalties should not be levied on home-owners who moved house but stayed with the same lender.
Byers did not comment on the lenders' proposal to abolish mortgages linked with compulsory home insurance.
