Commenting on the speech by Dame Colette Bowe at the BSA’s 2^nd Research Workshop on the Future of Financial Mutuals at Bayes Business School, Robin Fieth, CEO of the BSA, said:

On households in financial difficulty:

“As highlighted by Dame Colette Bowe, the current rise in living costs and interest rates will put increasing pressure on UK household finances in the coming months, with some borrowers likely to struggle with bills and other spending commitments. Lenders provide tailored support to those who are struggling and will continue to do so. It is important that anyone struggling to pay their mortgage gets in touch with their lenders as early as possible, the earlier you start talking to each other the more likely it is that a solution can be found.”

On the removal of the FPC’s 3% mortgage affordability test:

“The recent removal of the FPC’s affordability test was a welcome simplification of the regulatory framework which will reduce administration for mortgage lenders over time. Lenders must still assess affordability carefully and in line with expectations for interest rates, as required by FCA rules, and there will be no free for all.”

Ends

Notes:

1. Dame Colette Bowe’s speech can be viewed here
2. The BSA represents all 43 building societies, as well as 7 larger credit unions. Building societies serve almost 26 million consumers across the UK and have total assets of over £481 billion.  Together with their subsidiaries, they are helping over 3.6 million families and individuals to buy their own home with mortgages totalling over £357 billion, representing 23% of  total mortgage balances outstanding in the UK.  They are also helping over 23 million people build their financial resilience, holding over £333 billion of retail savings, accounting for 18% of all cash savings in the UK. With all of their headquarters outside London, building societies employ more than 51,500 full and part-time staff.  In addition to digital services they operate through almost 1,350 branches, holding a rising share of financial services branches in local communities.
3. Contact: katie.wise@bsa.org.uk or kate.creagh@bsa.org.uk