Basel II will trim riskier mortgages in UK

Introduction of the Basel II capital requirements is going to affect the large, higher risk UK mortgage market. Peter Williams of the Intermediary Mortgage Lenders Association, says: “It will inevitably make lenders think about their pricing or re-assess their priorities altogether.” Lenders will be required to detail assessments of risk exposure, and as many lenders price products against capital-market costs rather than risk exposure it is unclear what the effect on them will be, according