AFI issued a broker note this morning clarifying that borrowers would be able to port interest-only mortgages under certain conditions.
Borrowers will only be able to port if they wish to borrow the same amount or less than their current mortgages and the port will only be available on interest-only mortgages up to 75% loan to value.
Customers can contact Santander direct on a customer only line.
Brokers will not receive a proc fee for porting the mortgages.
Where a customer wishes to port their existing product(s) and borrow more on their new property and the new LTV will be above 50%, intermediaries can process these applications in the normal way on a capital and interest basis and they will receive a proc fee on the total mortgage loan as usual.
Lea Karasavvas, managing director at Prolific Mortgage Finance, said: "I have already seen a vast improvement on the levels of service coming from AFI which is surely too soon to be indicative of a reduction in applications.
"Abbey are being very responsible with their current criteria and showing compliance to the Mortgage Market Review.
"Whilst I can understand the frustration of brokers in the current climate with criteria change after criteria change and last minute rate pulls, it's important we remind ourselves that such criteria changes are required in the environment we are in.
"Already 2012 is shaping up to be as challenging, if not more so, than 2011 but thing that will never change is the need for professional advice in mortgage finance."
