Do you ever wonder who dictates the rules and regulations about mortgages? You’re not alone. Standby to get an insightful tour of the Council of Mortgage Lenders (CML), a key catalyst and conduit in the U.K.’s mortgage landscape.
Contents
History of the Council of Mortgage Lenders
The Council of Mortgage Lenders had its humble beginnings as an organisation in 1989. Its primary goal was to represent the collective interests of lenders within the UK’s mortgage industry, making it a riveting part of British financial history.
Fast forward to 2017, CML, along with six other trade associations, established UK Finance. Since then, the heart of CML now beats within UK Finance, maintaining its voice in shaping mortgage policies across the land.
Activities and Objectives
CML’s activities were primarily centred around influencing mortgage policies and providing valuable insights into the industry’s pulse. They produced monthly and quarterly reports that displayed mortgage market trends for their members and policymakers to digest.
Their objectives were relatively clear: contribute towards a thriving environment where consumers can efficiently access suitable lending options and lenders can effectively meet those needs.
Representation and Governance Structure
CML represented over 95% of the residential mortgage lending market. They spoke on behalf of banks, building societies, and specialist lenders – pretty much anyone who had a stake in mortgage lending in the UK.
The governance structure was driven by a management committee featuring representatives from each member section. Decisions at this level helped instigate changes that shaped how you, as an individual or business, experienced your journey with mortgages.
Influence on Mortgage Policies
When it came to influencing mortgage policies, CML was a powerhouse. They advised governmental bodies, regulators, and the broader public sector on matters related to mortgage lending. The guidance provided by them had direct impacts on the experience of homes owners, aspiring home buyers and lenders.
In essence, whenever there was a crucial debate about mortgage policy changes in the country, you could bet that CML’s fingerprints would be found somewhere within that conversation.
Membership Requirements and Benefits
The membership system allowed many bodies involved in mortgage lending to join their ranks – this included banks, building societies, and credit unions. Each member got access to invaluable insights via research data and industry forecasts that CML churned out regularly.
Members were kept updated through regular news bulletins about any fluctuations in policy or trends. The goal? To ensure the member organizations had first-hand information necessary for making informed decisions.
Statistics and Research Data
Unraveling mortgage market trends was one of CML’s specialties; they meticulously reported statistics often touching upon gross lending volumes or numbers of specific types of mortgages made in a given year. For example, they reported that gross mortgage lending in the UK reached an astounding £246 billion in 2016.
Their research data also covered details like the number of mortgages (around 11.1 million for 2016), loans to first-time buyers (338,900), home mover mortgages (360,300), and many others. From arrears to possessions and even remortgaging activity – CML kept tabs on all dimensions of the mortgage world.
Transactional Advisory Role
It wasn’t just about crunching numbers; CML also played a significant advisory role. They provided expert advice to members regarding operational aspects of running their business.
CML served as a profound reservoir of knowledge that helped member organizations navigate the complex landscape of mortgage lending effectively. They were more than a trade body – they were the guiding beacon leading the way through the tumultuous seas of the mortgage industry.
Conclusion
In essence, The Council of Mortgage Lenders was indispensable – contributing towards an effective, transparent, and competitive mortgage marketplace in the U.K. Although now amalgamated into UK Finance, its vision and ethos continue to shape deal-making between lenders and you, as borrowers. It’s safe to say that CML’s legacy lives on, continuing to dictate how the world of mortgages operates.
Frequently Asked Questions
- 1. When was the Council of Mortgage Lenders (CML) established?
- The Council of Mortgage Lenders was established in 1989.
- 2. What was the primary objective of CML?
- The primary objective of CML was to represent the collective interests of lenders within the UK’s mortgage industry. They aimed to contribute towards a thriving environment where consumers could efficiently access suitable lending options.
- 3. Who did the CML represent?
- The CML represented over 95% of the residential mortgage lending market. They spoke on behalf of banks, building societies, and specialist lenders.
- 4. What role did CML play in mortgage policies?
- CML advised governmental bodies, regulators, and the broader public sector on matters related to mortgage lending. They had a significant influence on the outcomes of mortgage policy debates in the country.
- 5. What did CML’s membership system entail?
- CML’s membership system provided many bodies involved in mortgage lending with access to research data, industry forecasts and regular news bulletins about any fluctuations in policy or trends.
- 6. What type of statistics and research data did CML provide?
- CML provided statistics often touching upon gross lending volumes or numbers of specific types of mortgages made in a given time period. This included data on the number of mortgages, loans to first-time buyers, home mover mortgages, and many others.
- 7. What was CML’s role in the transactional aspect of mortgage lending?
- CML provided expert advice to members regarding operational aspects of running their business. They served as a reservoir of knowledge that helped member organizations navigate the complex landscape of mortgage lending.
- 8. What happened to CML?
- In 2017, CML, along with six other trade associations, established UK Finance. Since then, the activities of CML have been carried out within UK Finance.
