The FCA has published a new webpage setting out the background to its Responsible Lending Review (RLR) which was launched in April 2015.  The RLR comes one year after the final rules were implemented following the Mortgage Market Review (MMR).

The FCA has divided the RLR into two main workstreams:

  • Review of mortgage lenders – the FCA will look at a cross-section of firms to test how affordability rules have been applied in practice.  The sample of firms will comprise banks, building societies and specialist lenders, and will represent approximately 70% of post MMR lending.  The FCA has confirmed that consumer outcomes will form a substantive part of the review, including for new lending, existing customers, contract variation and use of transitional arrangements.
  • Market research – the research will seek to build a “factual evidence base” on pre and post MMR mortgage markets trends.  The research is to be carried out by Experian and will be corroborated with FCA Product Sales Data analysis.

The RLR will take place throughout 2015 and the FCA intends to report on the review in the first half of 2016.

The page can be viewed here.