BSA comments on the speech by Dame Colette Bowe, Bank of England
Commenting on the speech by Dame Colette Bowe at the BSA’s 2nd Research Workshop on the Future of Financial Mutuals at Bayes Business School, Robin Fieth, CEO of the BSA, said:
On households in financial difficulty:
“As highlighted by Dame Colette Bowe, the current rise in living costs and interest rates will put increasing pressure on UK household finances in the coming months, with some borrowers likely to struggle with bills and other spending commitments. Lenders provide tailored support to those who are struggling and will continue to do so. It is important that anyone struggling to pay their mortgage gets in touch with their lenders as early as possible, the earlier you start talking to each other the more likely it is that a solution can be found.”
On the removal of the FPC’s 3% mortgage affordability test:
“The recent removal of the FPC’s affordability test was a welcome simplification of the regulatory framework which will reduce administration for mortgage lenders over time. Lenders must still assess affordability carefully and in line with expectations for interest rates, as required by FCA rules, and there will be no free for all.”
