14 Dec

CML slams charity's sub-prime mortgages report

CML slams charity's sub-prime mortgages report

The Council of Mortgage Lenders (CML) has refuted controversial claims that mortgage lenders have acted irresponsibly and given customers unaffordable loans.

The report from the charity Citizens Advice this week alleged that sub-prime lenders had provided loans which they knew borrowers could not afford.

Furthermore, lenders are coming down hard on customers who fall behind on repayments.

However, according to David Harker of the CML, the report is inaccurate and misrepresents the conduct of lenders.

He said: "Citizens Advice has taken a sensationalist tone in this report, which risks throwing the baby out with the bathwater. In fact, sub-prime mortgages give people a way to rehabilitate their finances and are important in a financially inclusive mortgage market.

"This report is in no way typical of the vast majority of cases where lenders work constructively with borrowers to get them over periods of financial difficulty and keep them in their homes," he added.

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