The FCA has published Consultation Paper 15/3: Buy-to-let mortgages – implementing the Mortgage Credit Directive Order 2015 (CP15/3).
Under the Mortgage Credit Directive (MCD), there is an exemption permitting the non-application of the MCD’s requirements to buy-to-let mortgages by Member States. As the Government has chosen to rely on this exemption, it must have in place an appropriate framework for buy-to-let mortgage activity from 21 March 2016. The Government has already established a legislative framework for consumer buy-to-let mortgages, and the FCA is required to implement this framework. CP15/3 sets out the FCA’s proposed approach to implementing the framework, including the proposed Handbook changes to reflect its powers to register, supervise and enforce against firms in relation to the framework.