UK transposition of the Mortgage Credit Directive—roadmap
UK transposition of the Mortgage Credit Directive—roadmap

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • UK transposition of the Mortgage Credit Directive—roadmap
  • Background to the UK transposition of the Mortgage Credit Directive
  • Table setting out UK transposition of the Mortgage Credit Directive
  • Chapter 1: Subject matter, scope, definition and competent authorities
  • Chapter 2: Financial education
  • Chapter 3: Conditions applicable to creditors, credit intermediaries and appointed representatives
  • Chapter 4: Information and practices preliminary to the conclusion of the credit agreement
  • Chapter 5: Annual percentage rate of charge
  • Chapter 6: Creditworthiness assessment
  • Chapter 7: Database access
  • more

Background to the UK transposition of the Mortgage Credit Directive

The Mortgage Credit Directive 2014/17/EU (MCD) was implemented in the UK on 21 March 2016 and applies to first and second charge mortgages. HM Treasury transposed the MCD by enacting legislation including making amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), SI 2001/544, and the Financial Conduct Authority (FCA) transposed the MCD by bringing into force rules and guidance in the Mortgages and Home Finance Conduct of Business sourcebook (MCOB).

Table setting out UK transposition of the Mortgage Credit Directive

The table below is based on the table published by HM Treasury in March 2015. It is designed to help readers to see where the provisions transposing the MCD requirements can be found in the RAO and MCOB and provides references to the key UK legislation and FCA rules implementing the MCD. It may not provide a definitive list of all the MCD articles or new FCA rules.

For more information about the MCD, see Practice Note: Mortgage Credit Directive (MCD)—essentials.

In the table, the following abbreviations are used (in addition to the ones mentioned above):

  1. annual percentage rate of charge (APRC)

  2. Consumer Credit Directive (Directive 2008/48/EC) (CCD)

  3. Data Protection Directive (Directive 95/46/EC) (DPD)

  4. Dispute Resolution: Complaints sourcebook (DISP)

  5. European Standardised Information Sheets (ESIS)

  6. Financial