Call for a ban on split mortgages that are ‘inequitable and misleading’

Some of the split mortgage products being offered by the banks to distressed borrowers are unfair and inequitable and should be banned, one industry body has claimed.

The Association of Expert Mortgage Advisors has said that such mortgage offerings with accruing interest are no different to interest-only extension periods.

The association is calling for a ban on such split mortgages, saying they are potentially misleading homeowners into believing they have secured a long- term viable solution to their financial woes, but are instead taking on further debt.