Your February update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his February update, discussing the latest issues in the industry and how we can tackle them…

Tackling barriers: The Protection Gap

AMI Senior Policy Adviser Stacy Penn discusses the Perception Gap in the protection market, in this article originally published in Moneyfacts…

The FCA in the insurance space – a more assertive regulator?

Following introduction of Consumer Duty, we have seen signs the FCA is shifting towards becoming a more assertive regulator…

The Perception Gap

AMI Senior Policy Adviser Stacy Penn discusses the findings from AMI’s latest Protection Viewpoint – The Perception Gap, in this article written for TMA Club…

Consumer Duty: The next steps – what does 2024 have in store?

On 6th December 2023, the FCA hosted a webinar titled Consumer Duty: The next steps – we draw out the key points of relevance to mortgage intermediary firms…

Your January update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his January update, reflecting on the challenges and opportunities of the year ahead…

Edit Content

Log in here for full access to all our great content


Please log in below with your username (which is your email address), using all lower-case letters.


Forgotten your password?
No problem, simply tell us you have forgotten your password to receive instructions instantly via email.

Having problems logging in?
If you are a current member but are unable to login, please first make sure you are using all lower-case letters for your username/email address. If you still have difficulties, please contact us via email at so we can rectify your problem.

Not a member?
Learn more about the benefits of becoming a member or apply online and we will be in touch.

When Rishi Sunak bounced the banks into mass payment deferral programmes, he also indicated that this would not impact a consumer’s credit score.  By the time set out their views in May on help with mortgages they stated that “payment holidays and partial payment holidays offered under this guidance should not have a negative impact on credit files.”  To a consumer that means a free lunch with no comeback.

However, the FCA position since late May is that whilst credit files may be clear, lenders may use other sources to assess creditworthiness.  Therefore, assessment of changes to income, expenditure, indebtedness or types of debt are permissible factors to meet the regulator’s responsible lending requirements.

So despite initial government rhetoric that payment deferral would not impact individuals, we are seeing this have deeper ramifications.  Most lenders are now looking wider than the score to assess future affordability and taking in other aspects including furlough, use of BB Loans, unsecured deferral and others.  We continue to challenge this with the FCA, but it is important that advisers check credit files where customers have deferred payment on either mortgage, loans or taken other credit.  This is going to be a difficult conversation, but customers should only be using these benefits in cases of genuine need.

Lenders offered the option to defer and we now see borrowers who have taken support be viewed differently. It was and is a choice on both sides. But we risk consumers not looking at our industry kindly.  This will be a consumer issue with government, who may have to intervene to tell the regulators to change their guidance.

Robert Sinclair, AMI
July 2020


Forgot Password?

Join Us