Speaking at the London leg of Legal and General Mortgage Club’s roadshow, Esther Dijkstra (pictured), director of strategic partnerships at Lloyds Banking Group, said the lender was looking at making its risk appetite more relevant to the customer base.
She said: “To give an example, if you look at customers in certain areas like London then interest only makes more sense just because of house price versus income in the city. So we could start to consider criteria changes similar to that.”
When pressed by Stephen Smith, Legal and General’s director of housing partnerships, if it was something that Lloyds was seriously considering, Dijkstra said: “Yes we do look at London markets, for example, as a region and the specific customer base within that.”
During the event, Dijkstra also lamented the pace of change and investment in mortgage technology, explaining that she was “surprised” at the lack of progress the sector had made within the last two years.
However, she remained sceptical that robo-advice would take off in lenders’ branches any time in the near future.
“One thing that’s difficult with robo-advice is that you immediately enter the area of systemic risk,” Dijkstra added.
“We all know regulation is about interpretation, and at that point in time you might implement something that you think is right, but as time moves on it may no longer be deemed acceptable by the regulator. That’s a big headache to get over before you take the risk of implementing something like that.”