Mortgage and home finance regulation

This Overview is a guide to the Financial Services content within the Mortgage regulation and home finance transactions sub-topic, providing links to the relevant materials. The subtopic examines the background to home finance transaction regulation and how home finance transaction firms are regulated from a conduct of business perspective, including the changes brought about by the mortgage market review. It also discusses the changes introduced by the Mortgage Credit Directive (Directive 2014/17/EU) (MCD) and the post-Brexit regulatory framework for home finance transactions.

Background to the regulation of home finance transactions

On 31 October 2004 (a date known as 'M Day'), lenders and intermediaries of regulated mortgage contracts (RMCs) became regulated.

The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No 2) Order 2006, SI 2006/2383, brought within the remit of regulation:

•
home reversion plans (HRPs), which are schemes where a provider buys an interest in a homeowner's property and allows the homeowner to continue to reside in the property, and
•
home purchase plans (HPPs), which include certain types of Islamic financing arrangements designed to enable the purchase of a home

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