Response: HM Treasury consultation on financial reform
Response: A new approach to financial regulation
Reckless mortgage lending saw many thousands of households lent mortgages that they had no hope of ever paying back, placing borrowers in dire financial straits. The practice of securitisation, where mortgage books were sometimes sold on to unregulated third parties who had no obligation to treat struggling borrowers fairly, led to macro-economic instability and also direct consumer detriment. We have also seen a sustained period of arrears and repossessions, partly dampened by low interest rates and increased regulatory scrutiny.