If you’re in the market for a mortgage, you may have heard of the Council of Mortgage Lenders (CML). But what exactly is the CML, and how does it affect you as a borrower? In this article, we’ll explain everything you need to know about the CML and its role in the UK mortgage market.
What is the Council of Mortgage Lenders?
The Council of Mortgage Lenders is a trade association for mortgage lenders in the UK. It was founded in 1985 and represents around 90% of the UK’s residential mortgage market. The CML’s members include banks, building societies, and specialist lenders.
The CML’s main role is to represent the interests of its members and promote a healthy and sustainable mortgage market. It works closely with the government, regulators, and other industry bodies to ensure that mortgage lending is conducted in a responsible and transparent manner.
What does the CML do?
The CML performs a range of functions to support its members and the wider mortgage market. These include:
Policy development and advocacy
The CML works with government and regulators to develop policies that support a healthy mortgage market. It represents the interests of its members in discussions with policymakers and promotes the benefits of a well-functioning mortgage market to the wider public.
Data and analysis
The CML collects and analyses data on the UK mortgage market. It produces regular reports on trends in mortgage lending, arrears and repossessions, and other key indicators. This data is used by policymakers, industry analysts, and the media to understand the state of the mortgage market.
Training and events
The CML provides training and events for its members to help them stay up-to-date with the latest developments in the mortgage market. These events cover topics such as regulation, compliance, and risk management.
Consumer information and education
The CML provides information and education to consumers on the mortgage market. This includes advice on how to choose a mortgage, how to manage mortgage payments, and what to do if you’re struggling to make payments.
What impact does the CML have on borrowers?
The CML’s work has a direct impact on borrowers in several ways:
Mortgage affordability
The CML promotes responsible lending practices among its members. This means that borrowers are less likely to be offered mortgages that they can’t afford to repay. This helps to reduce the risk of borrowers falling into arrears or defaulting on their mortgages.
Mortgage availability
The CML works to ensure that there is a healthy and competitive mortgage market in the UK. This means that borrowers have a wide choice of lenders and products to choose from, which can help them find a mortgage that meets their needs and budget.
Consumer protection
The CML promotes consumer protection by encouraging its members to adhere to industry best practices and regulatory requirements. This helps to ensure that borrowers are treated fairly and transparently by their lenders.
How can you find a CML member lender?
If you’re looking for a mortgage lender that is a member of the CML, there are several ways to find one:
- Contact the CML directly and ask for a list of its members
- Check the websites of individual lenders to see if they are CML members
- Ask a mortgage broker or financial adviser if they work with CML member lenders
Remember that not all lenders are CML members, and being a member does not guarantee that a lender will offer you a mortgage. You should always shop around and compare products and rates before making a decision.
Conclusion
The Council of Mortgage Lenders plays a vital role in the UK mortgage market. Its work promotes responsible lending practices, supports a competitive and sustainable market, and provides information and education to consumers. As a borrower, it’s worth understanding the role of the CML and how it can affect your mortgage options and affordability.