The cost of knowing less
There is a particular kind of risk in financial services that rarely announces itself with drama. It does not arrive as a crisis event, a market crash or a regulator standing at the door. It emerges quietly, gradually and often rationally, through a succession of individually defensible decisions which, over time, erode the standards that in the end hold so many financial services markets together. The global financial crisis was not created in a single moment of recklessness. It was built through compromise, through drift and through the slow normalisation of reduced scrutiny in the pursuit of growth and liquidity. Back then, the mortgage market sat at the centre of that process.
Why the FCA’s later life market study is a wake-up call for funders
The FCA has finally fired the starting gun on its later life mortgages market study, and it is clear they mean business. We all know the underlying stats by now: millions of people are undersaving for retirement, while the over-55s are sitting on a massive £3.7tn in property wealth. The market for lifetime and retirement interest-only (RIO) mortgages has to grow. But while most of the noise right now is about how lenders and brokers need to adapt, there is a much bigger conversation we need to have about the people actually funding these loans.
Supply side continues to drive the change agenda
Regulatory change is no longer something firms respond to periodically. It is now a permanent feature of the landscape. Whether it is capital treatment for small depositors, Basel 3.1, or the wider direction of prudential reform, the cumulative effect is a steady reshaping of expectations around capital, reporting, governance and, crucially, implementation.
Broadstone to acquire Rockstead and strengthen its Banking & Credit Advisory business
Rockstead adds material scale to Broadstone’s capabilities in the strategically important banking and lending market.
Acquisition brings a blue-chip client base of local and global Tier 1 banks, private equity firms, specialist lenders and a recognised leading industry team.
Bridging growth needs better risk management
Over the past six months, there has been a definite and deliberate shift in funders’ thinking when it comes to risk. For much of the past decade, institutional and bank funding has flowed into specialist lenders under a broadly stable set of assumptions. Liquidity has been abundant, rates low and credit performance appeared resilient even through periods of macro uncertainty. Funders prioritised growth, origination capability and asset yield.
Global Volatility – the impact on UK lenders and asset holders
The most significant current risk to UK lenders is geopolitical and macroeconomic instability. For CROs, geopolitical risk is no longer a background issue — it requires input into credit models, capital planning and risk appetite decisioning. As trade barriers rise, supply chains fragment, and political uncertainty reshapes global outlooks, the direct impact on the UK economy – and mortgage portfolios – is significant.
Why the collapse of US auto finance lenders matters for UK mortgages By John Barbour, chief executive, Rockstead
At first glance, the failure of a US car finance provider might appear to have little relevance to UK mortgages. Yet a number of lending frauds in the US private credit market have triggered a global response from funders, one that is beginning to feed through to the UK.
Servicers Back Under the Microscope
In today’s climate, the oversight of third-party servicers is not just an operational concern—it’s a strategic imperative for risk management. With regulatory scrutiny intensifying and customer outcomes under the spotlight, lenders must ensure that delegated outsourced functions are completed to appropriate standards that protect both the borrower and the institution.
Private Credit – New Risks
The global financial crash of 2008 revealed the dangers of financial contagion. What began as a collapse in the United States subprime mortgage market rapidly evolved into a worldwide banking catastrophe.
The retirement of the Building Society Sourcebook
As policymakers continue to shift their focus from consumer protection to growth, building societies are on the brink of a new competitive landscape, due to the imminent retirement of the Building Society Sourcebook. This change will be more profound than the post-1986 Act shakeup, fundamentally altering the risk environment.
