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Tuesday, 9 September 2014

Consultation On New Mortgage Rules

The UK Treasury is now consulting over the rules required to implement the European Mortgage Credit Directive by March 2016.

Importantly, the proposed rules will regulate second charge mortgages (also known as second charge loans, secured loans or secured personal loans) into line with first charge mortgage lending; and introduce a new set of regulations for buy-to-let lending, where the lending is to consumers rather than for business purposes. This is not expected to affect the vast majority of buy-to-let lending which is done for business purposes and therefore not subject to the European directive.

The consultation is open until early November 2014.