New allegations are swirling that lenders are taking a one size fits all view of bad credit mortgages, and not reviewing cases on a singular basis. While many banks are shying away from bad credit mortgages in the current climate, there is concern that not everyone is being treated equally. The IMLA responded to these allegations, stating that they do not believe this is the case with bad credit mortgages.
IMLA executive director Peter Williams says: “IMLA strongly contests the suggestion made by the FSA that all specialist lenders systematically operate a “one size fits all” approach to arrears management. MCOB 13 sets out a rigourous set of requirements regarding arrears and possessions.”
He added, “At the heart of it is the onus on the lender to work hard to reach a reasonable agreement with the customer in difficulty. All IMLA members adhere to MCOB 13 rules and regulations as set out by the FSA meaning they treat borrowers in difficulty as sympathetically as possible. Particularly in troubled times when arrears are mounting, it is in the interests of all parties to find an effective solution to overcome homeowners’ problems.”
Related reading: Bad Credit Mortgages
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