The Financial Conduct Authority has urged all firms involved in the second-charge market to start planning now for the transfer of regulation, which will see the sector move from the consumer credit regime to the mortgage regime from 21 March 2016.

The director of policy at the FCA outlined the regulator’s thinking around its decision, which was brought about by the fact the European Mortgage Credit Directive does not distinguish between first and second-charge mortgages. He spelt out the key changes second-charge advisers and lenders can expect to have to implement and the fact the regulator understands that the UK second-charge market iss not the same as the first-charge.