We use cookies to improve site performance and enhance your user experience. If you'd like to disable cookies on this device, please see our cookie management page.
If you close this message or continue to use this site, you consent to our use of cookies on this devise in accordance with our cookie policy, unless you disable them.

Close
In association with

Home > Regulation > Regulation Tracker > Mortgage Market Review

Mortgage Market Review

regulation keypoints

The FSA’s Mortgage Market Review includes, for the first time, provision for regulating and banning specific product charges, a requirement for lenders to assess affordability for all mortgages and a crackdown on rogue advisers.

* Launched in October 2009, the review examines how the FSA’s supervision can deal with firms, like Northern Rock, that adopt high-risk strategies that threaten the wider market.

* A regulatory landscape where the FSA is prepared to intervene where business models and strategies create undue risks for firms, consumers and the financial system generally, is envisaged.

* Ways to reducing the number of unaffordable mortgages and the unsustainable growth of riskier products by banning self-certification and requiring income verification for all mortgages are considered.

* Lenders are made ultimately responsible for affordability assessments. An assessment of a consumer’s free disposable income will become a fundamental element in the process of providing a mortgage under the new regime.

* Arrears rules are set to be strengthened with the FSA banning firms from imposing arrears charges on borrowers who have an agreed arrangement in place.

* Standards of “fitness and propriety” among individual advisers are set. The FSA pledges to crack down on rogue individuals and mortgage fraud by expanding the FSA’s approved person regime to cover several thousand mortgage intermediaries.

* Banning mortgage loans to borrowers who have certain combinations of risky characteristics is considered. The FSA has not ruled out loan-to-income or loan-to-value caps in the future. The regulator has said it is open to a debate on restrictions on equity withdrawal.

To read more about the Mortgage Market Review click here.

  1. Published by FCA, 05 Jun 2013

    Lenders told to reveal more mortgage information

    The Financial Conduct Authority (FCA) wants lenders to supply it with more information about mortgages.

    Proposed: deadline for responses 15 Aug 2013.

  2. Published by FCA, 05 Jun 2013

    Lenders told how to handle interest-only mortgage customers

    How customers who are unable to repay the capital sum at the end of their interest-only mortgage term must be handled has been explained by the...

    Final ruling: effective from 15 May 2013.

  3. Published by FSA, 02 Nov 2012

    FSA: High net worth clients can opt-out of advice process

    Latest Mortgage Market Review policy clarifies what is regulated advice and what is considered execution-only.

    Final ruling: effective from 25 Oct 2012.

  4. Published by FSA, 19 Dec 2011

    Shake-up of lenders’ affordability assessments

    The Financial Services Authority today (19 December) announced plans to prevent a return of the risky mortgage lending seen in boom times.

    Proposed: deadline for responses 30 Mar 2012.

  5. Published by FSA, 05 Oct 2011

    Shake-up of requirements for mortgage advisers

    In a 99-page consultation paper, the FSA sets out its plans to reform the mortgage sales process.

    Proposed: deadline for responses 25 Feb 2011.

  6. Published by FSA, 04 Oct 2011

    Mortgage arrears and approved persons

    Lenders were told their arrears fees and early repayment charges must reflect their costs while advisers were told they must be “fit and proper” to...

    Final ruling: effective from 30 Jun 2010.

  7. Published by FSA, 04 Oct 2011

    Responsible Lending

    The FSA set out rules requiring lenders to make sure consumers could afford to repay their mortgage and were not charged excessively if they fell...

    Proposed: deadline for responses 16 Nov 2010.

  8. Published by FSA, 04 Oct 2011

    Update on changes to approved persons regime

    The FSA has changed the timetable for making changes to its mortgage intermediary approved person regime.

    Proposed: deadline for responses 31 Dec 2011.

  1. FCA grants three-month non-advised MMR grace period
    From Mortgages| Jun 07, 2013

    FCA grants three-month non-advised MMR grace period

    Regulator offers concession in spite of concerns over transactions that new rules would otherwise prevent.

  2. South most exposed to FSA interest-only review
    From Mortgages| Nov 05, 2012

    South most exposed to FSA interest-only review

    Ratings agency says effect of MMR rules will have “limited impact” on UK residential mortgage-backed securities in the short term.

  3. Tony HazellonMortgages| Oct 31, 2012

    Indiscriminate selling leads to overzealous MMR clampdown

    The number of brokers who have been struck off since regulation is testament to how murky the business could be.

  4. FSA criticised for softening MMR non-advised ban
    From Mortgages| Oct 25, 2012

    FSA criticised for softening MMR non-advised ban

    Industry reaction to paper is mixed, with some stating the FSA is over-regulating while Ami says it is not offering sufficient protection.

  5. MMR: FSA confirms HNW exemption, drops income threshold
    UK Regulation| Oct 25, 2012

    MMR: FSA confirms HNW exemption, drops income threshold

    Better-off clients can opt out of advice process because they will be less affected if they default, FSA specifies.

  6. MMR: FSA to demand ‘independent’ evidence for self-employed
    UK Regulation| Oct 25, 2012

    MMR: FSA to demand ‘independent’ evidence for self-employed

    Regulator says new rules give lenders’ flexibility to decide what type of evidence to accept from self-employed customers.

  7. MMR: FSA introduces simplified carve-out for non-advised ban
    UK Regulation| Oct 25, 2012

    MMR: FSA introduces simplified carve-out for non-advised ban

    Regulator also confirms that lenders can provide information without this being construed as advice.

  8. MMR: FSA holds fire on interest-only as review launched
    UK Regulation| Oct 25, 2012

    MMR: FSA holds fire on interest-only as review launched

    Regulator says it is “trying to get a handle on the scale of the problem” in the sector.

  9. FSA should ‘insist’ brokers reveal panel lenders
    From Mortgages| Sep 26, 2012

    FSA should ‘insist’ brokers reveal panel lenders

    Mortgage expert says regulator has “given no indication” of changes to brokers revealing panel lenders post-MMR.

  10. Hal AustinonRegulation| Jul 18, 2012

    Another hornets’ nest

    The more we hear about the Libor scandal the more it looks like a hornets’ nest: known and unknown banks knee-high in corrupt practices, regulators...

Most Popular
More on FTAdviser
FTA jobs