The range of solutions does not take into account the scale of the financial and demographic challenges that exist in the firms’ LTMA portfolio. This is not just a case of requiring better use of existing waterfalls (as above), but consideration of whether the suite of solutions is sufficient.
Greater innovation is required, anchored by consideration of i) resolving the underlying affordability issues; and ii) longer-term cost of credit for the borrower (and so not overly relying on long-term interest only arrangements).