The Association of Mortgage Intermediaries has called the dismissal of legal cases against mortgage firms for the supposed mis-selling of interest only mortgages “encouraging.”

Ami says firms should engage their PI insurer early and that those who are not members of the association should consider joining to gain support on these critical matters.

Several cases against mortgage firms relating to interest-only products sold between 2004 and 2007 have recently been dismissed, including claims against brokers SPF Private Clients and Albany Park.

However, Ami says a number of firms still face court claims and action in relation to this alleged mis-selling, which is expensive to defend and has been a factor in escalating PII excesses and premiums.

Ami chief executive Robert Sinclair says: “These decisions strike out the cases as being time barred. In addition, the courts in delivering their judgements have also considered many of the substantive issues under review.

“These broadly have reduced the amounts of claim substantially, established that they have limited or no merit, set out that the costs of court time outweigh potential benefit and challenge the quality of both the claimant evidence and expert witness work.”

Sinclair says Ami continues to work with members to provide information and support to defend the cases, where appropriate in a “fair and robust manner.”