The UK Financial Services Authority (FSA) has now completed its lengthy and detailed Mortgage Market Review (MMR), the final rules for which aim to help promote a sustainable and flexible UK mortgage market and reduce the risky lending practices and abundance of cheap credit that were thought to have led (at least in part) to the collapse of the UK mortgage market in 2008 and 2009.  To that end, the Final Rules focus on responsible lending, advice, distribution (sales), disclosure, arrears management and the extension of the bank capital adequacy and liquidity requirements to non-bank mortgage lenders.The majority of the new Rules take effect from 26 April 2014.

Useful links

FSA Policy Statement 12/16