The Mortgage Credit Directive (Amendment) Order 2015 (SI 2015/1557) (Order) has been published on legislation.gov.uk, with an explanatory memorandum.  The Order amends the Mortgage Credit Directive Order 2015 (SI 2015/910) (MCD Order) which implements the Mortgage Credit Directive (MCD) in the UK.

The Order:

  • Provides that the availability of a transitional arrangement for new loans secured by a second or subsequent mortgage is determined at the first contact with a customer, whether that contact is made by a mortgage lender or intermediary.
  • Clarifies the regulatory status of a small number of existing buy-to-let mortgages which will continue to be regulated by the FCA as regulated credit agreements rather than regulated mortgage contracts.

The explanatory memorandum states that, after the general election, the government resumed its consultation with industry to understand their emerging plans for compliance with MCD requirements and to support their transition to the new regulatory framework. It emerged that there were several issues that had not been previously identified which required further legislative change to ensure the government’s policy aims are fully achieved and the regulatory requirements are clear.