The Directive on credit agreements for consumers relating to residential immovable property, more commonly referred to as the Mortgage Credit Directive (MCD), was published in February 2014 and Member States are required to implement it by 21 March 2016. In order to meet the requirements set out in the MCD, the UK Government needs to make certain changes to the legislation that sets out the framework for UK mortgage regulation.

HM Treasury has now published the draft Mortgage Credit Directive Order 2015 (the draft Order), which implements the MCD. Among the changes, the draft Order:

  • brings the regulation of ‘second charge’ mortgage lending into line with ‘first charge’ mortgage lending; and
  • introduces a new set of regulations for buy-to-let lending, where the lending is to consumers rather than for business purposes.

View New mortgage regulation legislation published, 26 January 2015