Non-bank Lenders Push for Access to Emergency State Funding

UK small lenders are warning that hundreds of thousands of vulnerable customers could become “mortgage prisoners” if the government does not grant wider access to emergency funding schemes to support credit during the coronavirus pandemic, the Financial Times reported. Non-bank, specialist lenders play a key role in providing home loans to three quarters of a million people who cannot borrow from mainstream banks, as well as financing small businesses and providing consumer finance such as point-of-sale credit. However, the sector has so far been excluded from state measures to support lending. Lobby groups led by UK Finance, along with several affected firms, have written to regulators warning that without urgent government intervention there was a “high likelihood” of a “severe” impact and a wave of bankruptcies like during the last financial crisis, according to a copy seen by the Financial Times. Read more