Speaking at the CML annual lunch last week, Wyles said: “The UK mortgage market is highly dysfunctional today but that is nobody’s fault, certainly no fault of anybody in this room.”
But Ample Financial Services director Colin Parkin says lenders should shoulder at least part of the blame for the turmoil.
He says: “The problems we face were created by lenders’ irresponsible attitude. They offered high-LTV deals and mortgages with ridiculous levels of risk.”
Wyles also hit out at National Savings & Investment, claiming that it poses unfair competition to other retail deposit products because of the 100 per cent capital guarantee from the Government.
He said: “We need to send the Government a message, saying we would be grateful if you stopped competing with us for savings. They have provided us with some stiff competition with NS&I and I would argue that, with a Government guarantee wrapped round it, is not fair competition.”
An NS&I spokesman says it saw a significant increase in sales last autumn but this was unsolicited and that pricing took into account the need to maintain stability in the market.