The FCA has released advice to consumers following concerns about an overseas firm offering self-certified mortgages to the UK from abroad and relying on the European Electronic Commerce Directive (ECD). This Directive falls outside the UK’s mortgage regime protections contained in the Mortgage Credit Directive (MCD).
Under the MCD, all firms offering mortgages in the UK will be required to conduct a thorough affordability assessment based on information verified by the lender.
Any customer who takes out a mortgage outside of the UK under the ECD, will lose important consumer protections, such as the right to refer complaints to FOS and the right to be treated fairly when facing payment difficulties.
Among other things, the FCA recommends that before making any decisions, consumers should find an FCA regulated mortgage adviser to advise on the mortgage products offered from lenders in the UK.