The Association of Mortgage Intermediaries (AMI) has reportedly urged the industry to break the connection between payment protection insurance (PPI) and mortgage products into its component parts.
The AMI’s March poll showed that some 93% of respondents in the field would support the unbundling of PPI on mortgages, enabling consumers to buy the insurance product separately from the mortgage, according to a report from IFA Online.
The PPI element would also then be independent of the mortgage lender, if the poll’s results were implemented. The report adds that PPI has come under the spotlight in recent times following a ‘super complaint’ filed by consumer group Citizens Advice. UK watchdogs the Financial Services Authority and the Office of Fair Trading are now looking into the sector.