The final FCA rules on the implementation of the Mortgage Credit Directive have been published.
The BSA remains supportive of the FCA's approach to implement the Directive, however still believes that it adds no additional benefit to UK consumers and risks adding cost and complexity to the mortgage application process. The fact the Directive cuts across the MMR transitional arrangements is evidence of this.
Commenting on the final rules, Paul Broadhead, Head of Mortgage Policy at the BSA, said:
“The final rules published today by the FCA do bring some clarity to the Mortgage Credit Directive ahead of implementation. We particularly welcome additional clarification around binding offers, foreign currency loans and the terminology in the ESIS, which will make the language a little more familiar for UK consumers.
“However, lenders now face additional time pressures of applying these rule changes alongside all of the other regulatory changes. We hope that once implemented, they will be able to get back to focusing their energy on product development, innovation and serving their customers, rather than solely on regulatory issues.”