House of Lords call for evidence on financial exclusion
Last updated: 14 Sep 2016
- Consulting body:
- Select Committee on Financial Exclusion
- Period of consultation:
- Runs from 22 July 2016 to 14 September 2016
- CML action:
- Response submitted
The Select Committee’s call for evidence is an attempt to build up an understanding of financial exclusion from first principles. We acknowledge and welcome this work.
Our comments focus on how the mortgage industry supports customers on lower incomes or who are financially vulnerable.
Mortgage lenders are open to all customers but can only lend where there is a strong prospect that the borrower will be able to meet their ongoing mortgage commitments.
Lending activity is subject to the Mortgage Conduct of Business (MCOB) regulations of the Financial Conduct Authority (FCA).
Lenders are only permitted to lend in circumstances where the “customer will be able to repay the sums borrowed and interest (in the case of a regulated mortgage contract) or pay the sums due (in the case of a home purchase plan).
Download the full CML response below.