BSA: Positive industry response to BSA Report on Long Term Safety Nets for Borrowers

BSA: Positive industry response to BSA Report on Long Term Safety Nets for Borrowers

BSA: Positive industry response to BSA Report on Long Term Safety Nets for Borrowers

Today the Building Societies Association (BSA) publishes a response to the report it commissioned from John Howard, broadcaster and former chair of the FSA Financial Services Consumer Panel, into what can be done to help consumers facing financial difficulties to remain in their homes.

The response includes contributions from Government, industry, debt advice charities and other notable industry commentators.

Background
The report sets out the scale of the problem, why it is likely to get worse in the near future and the schemes currently available to help borrowers who fall behind in their mortgage payments:

1. Private insurance
2. Public insurance in the form of state benefit payments
3. Flexible tenure enabling homeowners to become renters of their property
4. Lender forbearance.

Responses to the report
Respondents to the report include the Housing Minister, Grant Shapps; consumer representatives; money advice charities; insurers; and other notable industry commentators.

Grant Shapps, Housing Minister stated in his response:

“I am so pleased to see the Building Societies Association working with lenders, insurers, the debt advice sector and registered social landlords to explore what they can to together to tackle the challenges ahead.”

Paul Broadhead, Head of Mortgage Policy at the BSA commented:

“We have been overwhelmed by the commitment of key organisations to engage with this important issue. Clearly there is a lot of willingness to tackle the problems faced by borrowers in financial difficulty.

I see this very much as the beginning of a process, rather than its conclusion as there is much to be done to redesign the safety net for the future. I would like to thank those organisations that have committed to work with the BSA and government to turn the proposals into workable solution.”

~Ends~

Notes to Editors

1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 48 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches

2. A copy of the initial report, Long Term Safety Nets to Protect Mortgage Borrowers can be viewed on the BSA website www.bsa.org.uk

3. A copy of Government, industry and professionals’ views on support for borrowers facing repayment difficulties can be viewed on the BSA website
www.bsa.org.uk

4. Photographs of Paul Broadhead are available from the BSA press office, from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk

5. Contact
Fiona Cornes – fiona.cornes@bsa.org.uk / 020 7520 5926

Katie Wise (nee Errington)
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ

Tel: 020 7520 5904
Fax: 020 7240 5290
Email: katie.wise@bsa.org.uk
Web: www.bsa.org.uk