CP14/20: Implementing the Mortgage Credit Directive and the new regime for second charge mortgages

This consultation sets out our proposed approach to implementing the Mortgage Credit Directive (MCD).

The MCD applies equally to first and second charge mortgages, so the UK Government has decided that second charge mortgage regulation should move from our consumer credit regime into our mortgage regime as part of implementing the directive.

In this paper we set out our proposals for the new second charge lending regime alongside our plans for MCD implementation.

Who does this affect?

This will interest lenders, administrators, intermediaries and consumers in both the first and second charge mortgage markets. It will also interest bodies that represent these groups, including firms dealing with niche mortgage products, such as bridging finance or lifetime mortgages.

What are the next steps?

Please send us your comments by 29 December 2014.

We need to implement the MCD by 21 March 2016. To give firms sufficient time to prepare for implementation, we aim to publish our rules by the end of Q1 2015.