The FCA has published Discussion Paper 14/2: Fairness of changes to mortgage contracts (DP14/2).

In DP14/2, the FCA aims to provide an opportunity for firms and consumers to discuss the meaning of fairness when considering changes to terms of a regulated mortgage contract. In particular the FCA provides examples and a discussion of a non-exhaustive range of changes that firms may wish to make to their mortgage contracts, including variations to interest rates, changes to lending criteria or the withdrawal of a particular product or feature.

DP14/2 is structured as follows:

• chapter 2 sets out an overview of the current regulatory framework. This particularly focuses on Principles 6 (Customers’ interests) and 7 (Communications with clients) of the FCA’s Principles for Businesses;
• chapter 3 discusses consumers’ experiences and expectations of the market;
• chapter 4 covers how the FCA’s regulatory framework applies in practice and includes fictional case studies; and
• chapter 5 looks at the options open to the FCA if it has considered that the current regulatory framework does not ensure fair outcomes for consumers.

The deadline for comments on DP14/2 is 30 September 2014.

View DP14/2: Fairness of changes to mortgage contracts, 7 July 2014