Handing over banking licence so how can they offer a trade down mortgage?

K

Kerrigan

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If a bank hands over their banking licence, then how can they offer a trade down mortgage as an option to an indebted customer?

Surely this option is unconceivable considering their client most definitely would have an impaired credit history and would not be in a position to obtain another mortgage elsewhere.
 
The relinquishment of a banking licence does not affect an institutions abiity to restructure the existing loan book. In fact the absence of a banking licence does not even affect that institutions ability to lend new funds. A trade down mortgage would be viewed as a restructure, but nonetheless the banks ability to deal with its existing clients will not be affected. Ability to take in deposits and to operate current accounts are the main issues that require a banking licence. Lending money does not require a banking licence
 
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