You are here: cherry > Press releases for September 2023 > MorganAsh comments on BoE MPC decision
Back

MorganAsh comments on BoE MPC decision

21 September 2023

MorganAsh provides the MorganAsh Resilience System (MARS) to enable brokers, advisers and financial services firms to better manage and evaluate consumer vulnerability and comply with Consumer Duty.

Andrew Gething, managing director of MorganAsh said: “Following the recent inflation news, it was interesting to see the consensus quickly shift from another rise to a long-awaited pause to interest rates. At long last, it is some much-needed relief for those borrowers sat on tracker or variable rate mortgages – often through circumstance, such as elongated transaction times, remortgage process or a sale falling through.

“Despite the positive news, the chancellor was quick yesterday to highlight we are not out of the woods just yet. Although mortgage rates have improved significantly, the monthly payments for those remortgaging, or taking on a new fixed rate, are still much higher. We are seeing the strain this is causing in the rise in arrears. High food and fuel costs are also hitting household budgets.

“Consumer Duty reminds us that we must be there for those clients who are feeling this heavy burden and are in a vulnerable position. Without the correct systems in place, it’s not only impossible to identify these customers, but it is unlikely they will the achieve the good outcomes required by the regulator.

“We’ve seen many firms – including lenders and providers – break cover with support for vulnerable customers. In reality, many of these approaches still leave huge blackspots for bad outcomes – particularly in how they identify and communicate with vulnerable customers. In its latest ‘Dear CEO’ letter, the FCA has said it has already taken supervisory action against firms with weak identification of vulnerable clients. As more clients potentially fall into this category, this must be addressed.”