Affordability and ‘breathing space’ arrangements
In May we discussed the UK Finance arrears data, but the situation is expected to get worse as mortgage rates continue to rocket. Coupled with the cost-of-living crisis households are understandably already feeling the strain. Some commentators are keen to talk down the risk households currently face, pointing out that mortgage rates, despite recent increases, […]
Tap into our expertise
We are certainly living in interesting times and are facing multiple, changing challenges, daily. The Financial Services world is headline news and whilst to many these challenges seem new, uncharted and without precedent, we do not agree; we see many parallels with previous times and previous recessions. We have, in the past, joked that our […]
Underwriting service levels
We have seen, over the last few weeks, a deterioration in residential and commercial underwriting service levels. Brokers complain that the time from submitting an application to receiving a ‘useable’ mortgage offer is getting longer. Several lenders have temporarily withdrawn from the lending market, suggesting they need to protect service levels. Such tactics are damaging […]
ESG – the need for data
It is already a month since I spoke at the Global ABS, in Barcelona, on the need for transparency of ESG factors within RMBS. Not surprisingly, we still await agreed ESG reporting standards and mandatory disclosures. Talk about turning an oil tanker around? Such a manoeuvre would appear to be a short moment in time […]
Equity release concerns return
The Times recently ran an article that highlighted issues with equity release/lifetime mortgages. These mortgages have been plagued by negative connotations and even litigation ever since the first home income plans appeared in the 1980’s. All subsequent variations of the original schemes have suffered their own issues. However, what made this article more worrying was […]
Affordability stress tests – should funders be concerned?
While the Financial Policy Committee decision to drop lender affordability stress tests was expected, it is difficult to find articles that support the timing of the decision. When the restrictions were introduced in 2014, the intention was to prevent general loosening of credit assessments with the worry that reckless lending could cause an economic downturn […]
UK Finance arrears update – do you really know what you are holding/buying?
UK Finance has just issued its arrears data for Q1 of 2022. The press release highlights some of the positive aspects of the data, for example, the headline “The total number of customers in arrears with their mortgages continued to fall in the first quarter of 2022”. It also highlights the reduction in total arrears […]
Risky mortgage portfolios
We have heard commentators starting to describe some mortgage portfolios as ‘toxic’. While that may sound a bit harsh, we can understand how they may have reached that conclusion. There is no doubt that many borrowers are struggling to service their debt and there is also no doubt that certain categories of product and/or criteria […]
ESG comes of age
For too long there has been a sceptical mistrust in the integrity of some ESG labelled securities. It is not surprising that the term ‘Greenwashing’ has become a word in everyday vocabulary. That term seems to have become more acceptable rather than what is really being called out; “exaggerated, misleading or unsubstantiated sustainability-related claims about […]
Breaking news: Lender forced to half its interest rate
Mortgage regulation has developed over the past 20 years. Previously there was a focus on conduct matters, where senior managers were expected to ‘do the right thing’ in terms of providing services and products that met customer needs at a fair value. Now, there is an evolving situation around product matters specifically. It is now […]
