In this Policy Statement we report on the main issues arising from Consultation Paper CP15/36 (Future regulatory treatment of CCA regulated first charge mortgages) and publish the final rules.
Why are we issuing this policy statement?
In November 2015 we consulted on the future regulatory treatment of first charge mortgages which were entered into before 31 October 2004 and are regulated under the Consumer Credit Act 1974 (CCA) and our Consumer Credit sourcebook (CONC).
This Policy Statement (PS) summarises the feedback we received on the consultation and our response. In general, respondents agreed with our proposed amendments. We are now publishing final rules which come into effect on 21 March 2016; however, they will only apply when the affected loans become regulated mortgage contracts on 21 March 2017, unless the firm in question takes steps to apply the relevant rules before that date.
[1]PS16/7: Future regulatory treatment of CCA regulated first charge mortgages[2] [PDF]
Who is this policy statement aimed at?
This PS will be of primary interest to any firm currently administering, or advising on or arranging variations on a book of pre-2004 first charge CCA mortgages, or anyone who has this kind of mortgage.
What are the next steps?
Firms conducting activities relating to pre-2004 first charge CCA mortgages should check they have the appropriate permissions in place for when the legislation takes effect (21 March 2017, unless they transition their mortgages sooner) and consider how our rules will affect their business.