The Bank of England has also acknowledged that there is some evidence of banks being more willing to lend on an unsecured basis when using credit scoring, which potentially improves the access to bank finance for very small and start-up Small and Medium Enterprises. For the borrower, the benefits from credit scoring include increased access to credit and, in some cases, lower borrowing costs.
Indeed, from the perspective of treating customers fairly it could be argued that forbearance is actually making the position for the homeowner worse – if default or loss of ownership is pretty much inevitable every intervening month of interest roll up and capitalisation is actually adding to the shortfall that the borrower will eventually owe the bank.