BSA 2012: Backlash over lenders’ flaming hoops

Sarah Davidson

May 9, 2012

Out-going BSA chairman Peter Griffiths told delegates at today’s annual BSA conference: “Unfortunately, the unintended consequences of new regulation could see swathes of the UK population far less able to access financial advice and finding it much harder to get a mortgage.

“The hoops lenders will have to get consumers to jump through when they apply for a mortgage are getting higher, in fact not just high, but in some instances flaming.

“A consumer backlash could well follow.”

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Griffiths added that mutuals have indicated that they intend to increase their lending activity this year and the sector is “certainly open for business”.

And he added: “Despite the potential rocks in the road that we will have to navigate, I am optimistic that the mutual sector has an edge, as banks focus ever more on de-leveraging and short-term delivery to shareholders.

“It is throwing the advantages of the mutual sector – including our ability with no shareholders to plan for the longer term plus the far more customer centric approach that we have to business – into sharp relief.”

Griffiths confirmed that in the first quarter of 2012 mutual lenders have outperformed the mortgage market as a whole with gross lending up by 40% compared to a market uplift of 11% over the first quarter last year.

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