Sub-prime mortgage market fights back

06 July 2007
A sub-prime mortgage firm has spoken out in defence of the market sector as the Financial Services Authority (FSA) releases the findings of an investigation which found evidence of irresponsible lending among lenders and intermediaries.

The sub-prime industry is already "very heavily regulated", said Philip Evans, managing director of Enable Finance, with the FSA's existing 'treating customers fairly' policy ensuring "that customers are dealt with in a clear, fair and not misleading way".

"I have no experience of people being lent money who clearly can't afford it," Mr Evans told BBC Radio Five Live's Wake Up To Money programme.

His comments spoke to the FSA's claim that a third of the files of intermediaries reviewed showed evidence of inadequate assessment of consumers' ability to afford the mortgage.

There is a clear role for sub-prime lenders in the market, Mr Evans stressed, and customers should not be debarred from mortgage borrowing "just because [they] have had a debt problem in the past".

Meanwhile, the Council of Mortgage Lenders' director Michael Coogan reinforced his message.

"The sub-prime market has an important role to play in helping people with past credit problems to rehabilitate their finances," he said.

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