IMLA defends subprime lenders
The Intermediary Mortgage Lenders’ Association (IMLA) has spoken out on behalf of the UK’s subprime lenders after new guidelines from the Council of Mortgage Lenders (CML) prompted an attack on the sector from a Liberal Democrat MP.
Last week, the CML published new guidance on mortgage arrears in an effort to develop a uniform approach across UK lenders.
In response, Liberal Democrat MP Vince Cable, suggested that financial penalties would need to be applied to lenders who did not comply because many subprime lenders do not have the scruples of main mortgage lenders.
According to the IMLA, Mr Cable has failed to understand that the subprime lending sector includes many mainstream lenders and that the sector is fully committed to working with borrowers in financial difficulty and avoiding repossessions.
As an example, the IMLA cites GE Home Lending’s work with the Foundation for Credit Counselling to develop a free mortgage advice service for borrowers unable to meet their repayments.
The association also points out that it is in lenders’ interests that borrowers remain in their homes.