Mind the gap

The mortgage lending market in the UK has become increasingly credit-sensitive in recent years – that much is evidenced by the increase in discounts and options on offer to borrowers and the rise in ‘sub-prime lending’ – mortgage loans to lower-quality borrowers. But there is plenty of room for the UK mortgage market to become even more efficient by the time Basel II, the new capital Accord on bank regulatory capital, comes into force in 2007. Bill Tonks, director of risk management at Natio