Scots borrowers get a break

Kensington Mortgages is looking to bring in new affordability criteria on remortgages for Scottish borrowers who have signed protected trust deeds.

In Scotland, it is not possible for debtors to declare themselves bankrupt. Rather, they have to wait until bankruptcy is imposed upon them by a creditor.

To avoid this situation it is possible to enter into a PTD, whereby an insolvency practitioner consolidates debt into a manageable monthly payment similar to an individual voluntary arrangement.

At the moment, if borrowers wish to remortgage, their affordability is measured against the sum of their debts to all creditors.

Kensington is proposing to offer remortgages against what clients can afford once PTDs are in place.

Bob Ollason, regional sales manager for Kensington, says: “This change in criteria would make it easier for borrowers facing insolvency to remortgage and release capital to pay off some of their debts.”

Ollason has just been appointed vice chairman of the Council of Mortgage Lenders Scotland.

He has over 30 years’ experience in financial services working in a number of roles, including regional sales manager for the Bank of Scotland, before moving to Kensington Mortgages five years ago.

He will be working with Crawford McCaughie, who has recently been named chairman of CML Scotland.

Ollason adds: “I am delighted to have been appointed as vice chairman of CML Scotland. It is the culmination of more than three decades of working in the financial services industry and a testament to the commitment that Kensington is showing to the Scottish market.”