Lending grew in 2016 and, in a competitive market, borrowing rates fell to a historical low point against the backdrop of a cut in Bank rate in August – the first change in official rates in seven years.
Our review reports a 56% growth in lending by challenger banks and specialist lenders, while building societies and banks increased activity by 9% and 5% respectively.
In support of a competitive mortgage market, we worked closely with Which? on a new mortgage tariff to make its easier for customers to understand and compare lenders’ fees and charges.
We collaborated with the Financial Conduct Authority (FCA) as it considered a review of competition in the market – a project that will form a major part of our work in 2017.
The CML represented lenders on a broad range of issues across tenures, including implementation of the European Mortgage Credit Directive, and funding of the private rented and social housing sectors.
We re-instated a commissioned research function, publishing detailed reports on government housing schemes, the characteristics of residential landlords, tenure aspirations and shared ownership.
In Scotland, Wales and Northern Ireland – where devolved administrations increasingly determine housing policy – we represented the interest of lenders, and hosted a series of conferences and other events, including lunches and dinners.
In a febrile political atmosphere, we maintained strong working relationships with changing ministerial and shadow ministerial teams, as well as backbench MPs and peers – and continued to be viewed favourably by political contacts.
We represented lenders in a high-profile media environment, publishing statistics, commentary, news and articles, and responding to media inquiries. Once again, personal finance journalists voted us number one for press relations in a poll covering 19 bodies, mostly financial services trade associations but also including the Bank of England and the FCA.
For members, we continued to provide a wealth of data and other information, and operated 40 committees and working groups scrutinising areas of interest to lenders.
We also ran a well-attended series of seminars, workshops and conferences, as well as our hugely popular showpiece events – the annual dinner, lunch and conference.
The review also lists all CML members and third party mortgage administrators, including 11 who signed up to join in 2016:
- Bank of China (UK) Ltd, a provider of banking services, including mortgages, in the UK and overseas.
- Bank of Cyprus UK Ltd, a UK-incorporated lender to owner-managed businesses and property entrepreneurs.
- Mortgage administrator Capita Mortgage Administration Ltd.
- Specialist lender Investec Mortgages.
- Lifetime mortgage supplier Legal & General Home Finance.
- Mortgage administrator Mortgages plc.
- Mortgages and savings provider Newcastle Building Society.
- Lifetime mortgage provider OneFamily Lifetime Mortgages Ltd.
- Lending solutions provider Secure Trust Bank plc.
- The Mortgage Lender, a specialist lender based in Glasgow.
- Specialist lender Vida Homeloans.