Still no lending from CHL despite a drop in arrears
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Specialist lender CHL Mortgages reported last week that it has seen a 27% reduction in early arrears on its mortgage book, but says it has no immediate plans to re-enter the lending market.
The company has seen a drop in arrears across its entire buy-to-let and home loan mortgage book since February 2009.
It saw a 27% reduction in early arrears of less than three months and a 31% reduction in late arrears of three months and over.
Bob Young, managing director of CHL Mortgages, attributes the fall to its cautious approach to lending.
He says: “A lot of larger lenders lack experienced staff. When times were good, some lenders were focused on origination and less so on managing their existing mort-gage book.
“Brokers didn’t always like that we turned down some loans, but as a lender we looked at the overall picture and not just at origination.”
Speaking about a possible return to the market Young says: “We would love to get back to the lending but we don’t see it happening at the moment.”
The lender announced in 2008 that it would no longer be accepting new business and instead was to focus on servicing its existing mortgage book.
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