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How will lenders differentiate between Covid debts and high risk borrowers? – Star Letter 27/11/2020

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  • 27/11/2020
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How will lenders differentiate between Covid debts and high risk borrowers? – Star Letter 27/11/2020
Each week Mortgage Solutions and its sister title Specialist Lending Solutions select the top comments from our readers in our Star Letter section.

 

This week’s comment was a reaction to the story: Virgin Money braces for surge in bad debts while mortgage lending falls 30 per cent 

Stuart Phillips said: “I’d be more interested to know how a lender is going to differentiate between a ‘bad debt’ as a result of Covid-19 and a bad debt because the client is a high risk.  

If lending volumes are expected to dip, lenders are reluctant to increase costs and adverse credit cases will rise, how is the market going to adapt to that? 

He added: “have to assume that lenders will want to continue lending to clients who were genuinely disadvantaged because of a pandemic, but no one is really talking about that. 

 

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