UK government raises objections to EU Mortgage Credit Directive
The EU Mortgage Credit Directive, which has to be implemented by March 2016, will disrupt the mortgage market by giving consumers more time than is necessary to consider loan offers, in the view of the UK government and the Council of Mortgage Lenders.
The UK government has said it will maintain the existing regulatory framework and put in place the “minimum requirements” to meet the UK’s legal objectives when it transposes the directive into domestic law.
In an official statement, the Treasury said the directive “would
place significant costs on industry and replace a familiar and robust regulatory system, designed to meet the requirements of the UK market, with a completely new framework.”
The statement continued: “For this reason, the government is proposing to build on the existing UK regulatory regime in our transposition of the MCD, rather than copy out the directive into UK legislation.”
The Council of Mortgage Lenders warned of “fundamental changes to the sales process that will confuse consumers”.
* Expert legal advice from a Property & Housing Barrister.