The chief executive of the Association of Mortgage Intermediaries has warned that the coronavirus crisis is causing real difficulties for some non-bank lenders.
Speaking on the latest SoundAdvice podcast, Robert Sinclair said that such lenders faced different problems to bank lenders.
He said: “With the securitisation markets effectively shut and limitations on their warehouse lines then it is very difficult to write incrementation business.
“If they are forced into applying the payment holiday as well, then they clearly have issues around how they can service the interest on their warehouse lines, and also their requirements under their securitised elements. So they are clearlyin a very difficult position.
“Without direct intervention from the Treasury and Bank England then I fear they are going to have a very difficult time over the next few weeks.”
To listen to the full interview, please listen to the podcast here.
