Discussions continue for non-bank lender support package – Treasury

The specialist lending sector has been particularly hard hit since the pandemic hit, with capital markets effectively closing down and lenders having to halt applications.

The subject of issuing and funding government and regulator mandated mortgage payment holidays for borrowers has proved particularly disruptive.

Last week Specialist Lending Solutions reported that three options had been tabled to Treasury and the Bank of England by trade bodies representing the sector.

The options included a term funding scheme to support non-bank lenders and government-backed finance to help facilitate forbearance such as the mortgage payment holidays.

An HM Treasury spokesperson told Specialist Lending Solutions: “We have worked at pace to announce a range of unprecedented new measures to provide support to businesses and individuals, and we are committed to ensuring that firms are able to support their customers at this time.

“As part of this, we are keen to understand the issues that non-bank lenders are experiencing, and conversations are ongoing.”

The Bank of England did not respond to requests for comment on the situation.