14
Dec
CML slams charity's sub-prime mortgages report
The Council of Mortgage Lenders (CML) has refuted controversial
claims that mortgage lenders have acted irresponsibly and given
customers unaffordable loans.
The report from the charity Citizens Advice this week alleged that
sub-prime lenders had provided loans which they knew borrowers
could not afford.
Furthermore, lenders are coming down hard on customers who fall
behind on repayments.
However, according to David Harker of the CML, the report is
inaccurate and misrepresents the conduct of lenders.
He said: "Citizens Advice has taken a sensationalist tone in this
report, which risks throwing the baby out with the bathwater. In
fact, sub-prime mortgages give people a way to rehabilitate their
finances and are important in a financially inclusive mortgage
market.
"This report is in no way typical of the vast majority of cases
where lenders work constructively with borrowers to get them over
periods of financial difficulty and keep them in their homes," he
added.
