CML, IMLA respond to sub-prime report

The Council of Mortgage Lenders (CML) and the Intermediary Mortgages Lenders Association (IMLA) have attacked a controversial report on the sub-prime mortgage industry.

A well publicised report by Citizens Advice, entitled 'Set up to fail', which slammed the sub-prime industry for acting irresponsibly towards borrowers, has been labelled "sensationalist".

Both the CML and the IMLA agree with many of the points made but are unhappy about the way the piece was presented.

"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," said Michael Coogan, director general of the CML.

"It is vital to recognise that the overwhelming majority of mortgage borrowers are meeting their payments in full and on time.

"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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