United Kingdom

Topic: Mortgages

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Mortgages and coronavirus: additional guidance for firms – finalised guidance

On 14 September 2020, the FCA finalised its additional guidance setting out how firms should provide tailored support to mortgage borrowers who have benefitted from payment deferrals under its June 2020 guidance and who continue to face financial difficulties, as well as those whose financial situation may be affected by coronavirus after 31 October 2020. … Continue Reading

COVID-19: FCA consults on additional guidance for mortgage firms

On 26 August 2020, the Financial Conduct Authority (FCA) published a guidance consultation containing additional draft guidance for mortgage firms in light of the COVID-19 pandemic. It sets out the FCA’s expectations in relation to the fair treatment of mortgage borrowers who are experiencing financial difficulty as a result of the pandemic. This guidance is … Continue Reading

FCA Call for input – Ongoing support for consumers affected by coronavirus: mortgages and consumer credit

The COVID-19 pandemic is continuing to present challenges across the board with regional lockdowns, closures of “air-bridges” and talks of a second wave dominating media outlets at the present time. If the pandemic has brought certainty in one regard, it is that the future is more uncertain than ever. In order to help provide further … Continue Reading

FCA Consultation Paper: Removing barriers to intra-group switching and helping borrowers with maturing interest-only and part-and-part mortgages

On 28 July 2020, the FCA issued a statement on mortgage prisoners, and a Consultation Paper setting out proposals intended to support some consumers in the mortgage market. The statement presents the further analysis the FCA has done on borrowers with inactive firms, including mortgage prisoners. It sets out the actions the FCA has already … Continue Reading

FCA issues research on mortgage switching

On 10 March 2020, the FCA issued its latest research into mortgage switching and how consumers can be encouraged to seek out better deals. Specifically, the FCA has published: Mortgage switching research report; Occasional Paper 54 on the characteristics of consumers who do not switch; and Occasional Paper 55 on brand loyalty in the mortgage … Continue Reading

EBA reviews its RTS on professional indemnity insurance for mortgage credit intermediaries

On 28 February 2020, the European Banking Authority (EBA) published a report on a review of the regulatory technical standard (RTS) specifying the minimum monetary amount of the professional indemnity insurance (PII) or comparable guarantee for mortgage credit intermediaries. The report has been developed in accordance with Article 29(2)(a) of the Mortgage Credit Directive (MCD), … Continue Reading

FCA Policy Statement: final rules and guidance on mortgage advice and selling standards

On 31 January 2020, the FCA published Policy Statement 20/1: Mortgage advice and selling standards: feedback to CP19/17 and final rules (PS20/1). In PS20/1 the FCA will make it easier for firms to present mortgage options to customers without providing regulated advice. In PS20/1 the FCA sets out final rules and guidance in the following … Continue Reading

Understanding mortgage prisoners

On 17 January 2020, the FCA published a new webpage providing further data on the mortgage prisoner population. Key findings include: around 250,000 people are in closed mortgage books or have mortgages owned by firms that are not regulated by the FCA; FCA research shows around 170,000 of these borrowers are up-to-date with payments and … Continue Reading

Definition of a ‘legal mortgage’

On 3 December 2019, the Complaints Commissioner published its final report of 6 November 2019 concerning the FCA’s handling of an inquiry that had been made about the definition of a ‘legal mortgage’. The final report explains that the Complaints Commissioner asked the FCA to clarify an earlier statement in which it stated that it … Continue Reading

FCA Policy Statement on changes to mortgage responsible lending rules and guidance

On 28 October 2019, the FCA published Policy Statement 19/27: Changes to its responsible lending rules and guidance – feedback on CP19/14 and final rules (PS19/27). In PS19/27 the FCA will remove barriers that prevent consumers from switching to a more affordable mortgage despite being up to date with their current mortgage payments. The proposals … Continue Reading

PRA / FCA Policy Statement on changes to mortgage reporting requirements

On 30 September 2019, the PRA and FCA jointly published Policy Statement FCA – 19/23 PRA – 22/19: changes to mortgage reporting requirements (the Policy Statement). The Policy Statement follows an earlier joint PRA / FCA Consultation paper where the regulators proposed new reporting requirements which would apply to regulated mortgage lenders and home finance … Continue Reading

FCA implementation group on proposed changes to responsible lending rules

On 27 August 2019, the FCA updated its webpage on the March 2019 Consultation Paper: Mortgage customers: proposed changes to responsible lending rules and guidance (CP19/14) (see blog post here). The FCA has included an additional note that it is now considering responses received to CP19/14 and if it decides to proceed with proposals, it … Continue Reading

FCA research report on buying a mortgage without advice

On 8 May 2019, the FCA published a research report produced for it by Revealing Reality on buying a mortgage without advice. The report follows research that explored with recent mortgage applicants how appealing and how clear they found several existing execution-only disclosure documents. The research found execution-only customers generally understood that they were selecting … Continue Reading

FCA consults on changes to mortgage advice rules to encourage consumer choice

On 7 May 2019, the FCA published Consultation Paper 19/17: Consultation on mortgage advice and selling standards (CP19/17). In CP19/17 the FCA sets out proposed changes in its mortgage advice and selling standards to address three harms identified through the FCA’s Mortgages Market Study: the FCA’s advice rules and guidance are a barrier to the … Continue Reading

EBA adds MCD to single rulebook Q&A tool

On 25 April 2019, the European Banking Authority (EBA) published a press release announcing that it had updated its Interactive Single Rulebook and Q&A tool with the Mortgage Credit Directive (MCD). The update allows users to review all the EBA’s final Technical Standards and Guidelines associated with the MCD by navigating through the Directive on … Continue Reading

FCA consults on changes to responsible lending rules and guidance following mortgage market study

On 26 March 2019, the FCA published Consultation Paper 19/14: Mortgage customers: proposed changes to responsible lending rules and guidance (CP19/14). By way of background, the FCA is concerned that some consumers cannot switch to a more affordable mortgage despite being up-to-date with their mortgage payments. This includes those who cannot switch because of changes … Continue Reading

PRA and FCA consult on changes to mortgage reporting requirements

On 13 December 2018, the FCA and PRA jointly published a consultation paper setting out proposed changes to mortgage reporting requirements (FCA CP18/41, PRA CP30/18). The joint consultation will be directly relevant to: mortgage lenders, home finance administrators and entities that own mortgage books but which are not authorised to lend. The consultation is also … Continue Reading

FCA Thematic Review on the management of long-term mortgage arrears and forbearance

On 6 December 2018, the FCA published a webpage providing the findings of Thematic Review 18/5: Management of long-term mortgage arrears and forbearance (TR18/5). The publication of TR18/5 follows an FCA review which specifically focused on firms’ interactions with customers with mortgage arrears of greater than 12 months. The regulator looked at firms’ arrears management … Continue Reading

FCA publishes findings of review into complaints handling by non-deposit taking mortgage lenders and mortgage third-party administrators

On 15 August 2018, the FCA published a webpage providing the findings of its review of how non-deposit taking mortgage lenders and mortgage third-party administrators handle complaints. The findings of their review are as follows: firms generally have a positive attitude towards complaints root cause analysis, however it isn’t always clear how firms use their … Continue Reading

Mortgage lenders’ commit to help longstanding borrowers on reversion rates

On 31 July 2018, UK Finance announced that 59 authorised lenders representing 93% of the UK’s residential mortgage market have agreed common standards to help existing borrowers on reversion rates who are up-to-date with repayments but, because of stricter affordability criteria, are currently ineligible to move to an alternative product provided by their lender. For … Continue Reading

FCA Dear CEO letter- second charge lenders and responsible lending

The FCA has published a Dear CEO letter asking the CEOs of firms that enter into regulated second charge mortgage contracts to review their firm’s mortgage lending processes and confirm to the regulator, by 1 May 2018, that the firm is lending responsibly and that its processes, systems and controls ensure this. The Dear CEO … Continue Reading
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