Conduct of business obligations when providing consumer buy-to-let mortgage products to consumers
- Act honestly, fairly, transparently and professionally in consumer buy-to-let mortgage activities Trader
UK Statutory Instrument
2015
United Kingdom
The Mortgage Credit Directive Order 2015
At a glance
Enforced by
What's here
16 compliance obligations
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Trader 16
Other Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Traders also bound by 826 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 413 duties
- Companies Act 2006 2006 243 duties
- The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 2008 114 duties
- Insolvency (England and Wales) Rules 2016 2016 62 duties
- Building Societies Act 1986 1986 56 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Schedules
Obligation to assess the creditworthiness of the borrower
- Assess borrower's creditworthiness before concluding a consumer buy-to-let mortgage Trader
Property valuation
- Use reliable standards for property valuations Trader
Disclosure and verification of borrower information
- Assess borrower creditworthiness using verified rental and property data Trader
Standards for advisory services
- Provide advisory services in line with product-range and fee disclosure, best-interest duty, and independent-advice rules Trader
Foreign currency loans
- Provide foreign currency loan borrowers with conversion rights or risk limitation and regular warnings Trader
Variable rate credits
- Make variable rate credit indexes clear and verifiable, and keep historical records Trader
Early repayment
- Allow early repayment of buy-to-let mortgages and provide cost reduction Trader
Flexible and reliable markets
- Keep records of property types and mortgage underwriting policies Trader
Information concerning changes in the borrowing rate
- Inform borrowers of borrowing rate changes before they take effect Trader
Arrears and possession
- Exercise forbearance and fair treatment when borrowers are in arrears Trader
Tying and bundling practices
- Do not tie buy-to-let mortgages to other financial products unless exceptions apply Trader
General information
- Make clear general information available for buy-to-let mortgages Trader
Pre-contractual information
- Provide a lending illustration and draft contract to buy-to-let mortgage borrowers Trader
Information requirements concerning credit intermediaries
- Provide specified information to borrowers before credit intermediation activities Trader
Adequate explanations
- Provide adequate explanations on consumer buy-to-let mortgages Trader
Browse 20 other Schedules — structural / supplementary
The Financial Services and Markets Act 2000
The Financial Services and Markets Act 2000 (Gibraltar) Order 2001
The Consumer Credit (Disclosure of Information) Regulations 2004
The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
The Consumer Credit (Disclosure of Information) Regulations 2010
The Consumer Credit (Agreements) Regulations 2010
The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (
The Consumer Credit Act 1974
The Consumer Credit (Agreements) Regulations 1983
The Financial Services and Markets (Regulated Activities) Order 2001
The Financial Services and Markets Act 2000 (Exemption) Order 2001
The Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001
The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001
The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001
The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001
Obligation to provide information free of charge to consumers
Basic equation expressing the equivalence of drawdowns on the one hand and repayments and charges on the other
Additional assumptions for the calculation of the annual percentage rate of charge
Knowledge and competence requirements for staff
Calculation of the annual percentage rate of charge
Browse 35 other sections — procedural / definitional / commencement
Citation and commencement
Interpretation
Amendments to legislation
Application of this Part
Interpretation of this Part
Meaning of credit intermediary
Meaning of advisory services
Limitation on permission to carry on regulated activities
Register of consumer buy-to-let mortgage firms
Applications for entry on the register or variation of an existing entry on the register
Determination of applications
Procedure when refusing an application
Registered consumer buy-to-let mortgage firm ceasing to meet the requirements for registration
Revocation of registration
Procedure on revocation
Suspension of registration
Procedure on suspension
Appointed representatives
Obligations of registered consumer buy-to-let mortgage firms
Power to direct registered consumer buy-to-let mortgage firms to take appropriate action
Functions of the FCA in relation to this Part
Monitoring and enforcement
Guidance
Application of provisions of the Act to registered consumer-buy-to-let mortgage firms
Application of procedural provisions of the Act
Application of provisions of the Act to the FCA in respect of its supervision of consumer buy-to-let mortgage firms
Extension of the compulsory jurisdiction of the Financial Ombudsman Scheme to registered consumer buy-to-let mortgage firms
Transitional provision: person with Part 4A permission to carry on an activity in relation to a regulated mortgage contract before 21st March 2016
Transitional provision: agreements before 21st March 2016
Transitional provision: consumer credit back book mortgage contracts
Transitional provision: person engaged in consumer buy-to-let mortgage business before 20th March 2014
Transitional provision: person subject to the Consumer Credit Act 1974 who chooses to adopt new rules before 21st March 2016
Transitional provision: first charge mortgages entered into before 31st October 2004 which are regulated credit agreements immediately before 21st March 2016
FCA power to direct timing of applications for permission and registration
Review
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- How we calculate annual fees | FCA (opens in a new tab) from FCA Detailed Guidance
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
Financial Conduct Authority
Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …
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Regulators
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