Forum Brief: Miles Review

Professor David Miles today published his final report setting out recommendations to improve the UK mortgage market.

The recommendations fall broadly into two groups. Firstly, those that are aimed at improving the advice and information that borrowers receive and at creating a fairer and more transparent pricing structure. Secondly, those that are aimed at helping lenders fund mortgages and handle risk in the most cost-effective way. 

Forum Response: Council of Mortgage Lenders

Michael Coogan, CML director general, said:"Professor Miles has undertaken a commendably thorough and thoughtful review, and has drawn up an eminently sensible package of recommendations.

"The combination of increased transparency, enhanced consumer advice about risk, access to appropriate funding and technical improvements would together smooth out the wrinkles in the mortgage market that Professor Miles has identified.

"In doing so, it may well be that an effect would be to increase the attractiveness of fixed rates from a consumer perspective. Some of Professor Miles' ideas, such as a free-standing interest rate cap insurance, are likely to be keenly explored by the lending industry.

"As Professor Miles says, there are great strengths in the UK housing finance system. We hope the chancellor will also recognise this in his Budget next week. We are grateful to Professor Miles for identifying some concrete steps that could be taken to improve it further without introducing obvious detrimental side-effects."

Forum Response: Barclays Bank

Andy Gray, head of mortgages at Barclays and The Woolwich, said: “Barclays and The Woolwich full mortgage range is available to all customers, whether existing or new and we believe the rest of the mortgage industry should follow this lead.