Van der Heijden said in his speech yesterday at the CML conference: “Legal” lending can still be the wrong thing and we should show ourselves capable of exercising self-restraint.”
He continued: “So to start us off – how are we going to prevent the margins of buy-to-let becoming the new self-cert; how are we going to avoid rational forbearance becoming irrational; what is acceptable in bridging loans or lease options?”
The report due out in the coming weeks, called a self-evaluation of CML members on issues including demystifying the grey areas of lending and creating simpler, more flexible products.
Van der Heijden said one of the report’s key findings was UK lender’s tendencies towards “groupthink.”
“But can I be challenging? I think too often we have reacted to proposals by regulators, politicians, advocates; I think too often we have waited for regulators to control unwise lending rather than take matters into our own hand; and too often we have let the actions of a few spoil the reputation and market health for us all. This is our business, and we have to run it. That starts with understanding where we are,” he said.