Iain Laing, chief credit officer at Santander UK, says that the Financial Services Authority’s changes on interest-only have already affected 2% of its lending.
And speaking at the Mortgage Business Expo in London today, Laing went on to estimate that the Mortgage Market Review as it currently is will impair 20% to 30% of Santander’s current lending.
But he was positive about the likelihood would be of changes being made to the MMR.
He says: ““I honestly think that there everything to play for at the moment – the FSA was saying Q1 2011 to implement the MMR – now it has no specific date in mind and has acknowledged some of the rules could need redrafting.
“The FSA has set itself an impossible task – it can’t set rules that are both prudent and reasonable.”
In terms of affordability he cautioned that there were cases where it would be difficult to write specific rules to govern lending on them.
And talking about fast-track he says that in a worst case assessment 80% of its brokers were verifying income. Fast-track as a name he says will be retired but he argued that the lender would not have to make major changes to its processes.