Financial regulation roundup

Mortgage Credit Directive & Time Orders

The FCA has published a policy statement setting out  final rules for implementation of the Mortgage Credit Directive (MCD) and the new regime for second charge mortgages. The MCD applies equally to first and second charge mortgages. In terms of Time Orders concerns have been raised as to whether the change in regulation for second charge will restrict a courts ability to make a Time Order. FCA have stated that it is Governments intention to ‘maintain the availability of Time Orders as judicial tool’ and as such will hopefully remain.

FCA to investigate mortgage market.

The FCA revealed plans to investigate the mortgage market to see if there are “competition” issues that are failing consumers. The FCA did not definitively state what kind of barriers to competition it will be investigating, but suggested this could include rules preventing customers from switching between providers to access more affordable products. The study, planned for 2016, will hopefully seek to address issues faced by ‘mortgage prisoners.’

FOS rules against HSBC over rejecting mortgage based on age

The Financial Ombudsman Service has upheld a complaint against HSBC for unfairly rejecting a mortgage application on the grounds of age in the first case of its kind. FOS found that HSBC in refusing a mortgage application from a couple in their forties  ‘relied on untested assumptions, stereotypes or generalisations in respect of age.’’  HSBC has been ordered to pay the couple £500 compensation .