CML to complete merger with UK Finance tomorrow

The Council of Mortgage Lenders will cease to exist in its current form as of tomorrow, 1 July.

The CML has been in existence for nearly 28 years but will now be merged with five other trade bodies – the British Bankers Association, Payments UK, the UK Cards Association, Financial Fraud Action UK and the Asset Based Finance Association – to form UK Finance.

Chief executive Paul Smee will oversee the transition to the new body, before stepping down from his role.

In an interview with Mortgage Strategy last month, Smee said he was “really keen that the mortgage side doesn’t get meshed in” when the merger take place.

“Our executive committee will initially become the Mortgage Product Board and won’t be far away from what the CML executive committee looks like. It will report into this big board of UK Finance but it will be a mortgage voice and have a mortgage agenda and people will be able to join just the mortgage bit, not every bit, as that’s so important to the market,” Smee said.

“We’ve tried very hard on the merger; what we want are happy members.”

The merger was first suggested following an independent review in 2015 which resulted in a report called The Financial Services Trade Associations Review. It suggested the move could deliver efficiency savings of £32.6m over 25 years.

The Intermediary Mortgage Lenders Association, the Building Societies Association and the Finance & Leasing Association will not form part of the new body and will remain independent.