Government consults on EU Mortgage Credit Directive
On 5 September 2014 the government launched a consultation on incorporating new European regulations on mortgage lending into UK law.
These new regulations, which are set out in the EU Mortgage Credit Directive, set common standards that EU members need to meet in order to protect consumers taking out loans to buy a residential property. The government has already introduced a number of major reforms to mortgage lending, including creating new, stronger regulators with powers to ensure people only borrow what they can afford to repay, as well as tackle any future risks to financial stability from the mortgage market at a much earlier stage.
The consultation closed on 28 September 2014.
Also, on 25 September the FCA published its consultation paper setting out the draft rules for implementing the EU Mortgage Credit Directive and also for regulating second charge lending under MCOB. The UK Government has decided that second charge mortgage regulation should move from the consumer credit regime to the FCA's regulated mortgage regime as part of implementing the EU Mortgage Credit Directive.
The consultation period runs until 29 December 2014.