Three firms authorised for second-charge mortgages

Three firms authorised for second-charge mortgages

Three advisory firms have now been given authorisation for second-charge mortgage broking by the FCA.

The City watchdog started accepting applications on 20 April 2015 ahead of the implementation of the EU’s Mortgage Credit Directive in March 2016.

Another five firms are in the process of applying for full authorisation for second-charge mortgage broking, with a further eight firms in the process of applying for the lending authorisation.

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In both cases no firms have yet been refused authorisation. The EU MCD introduces a European framework of conduct rules for firms selling both first and second-charge mortgages.

From 21 March 2016 second-charge mortgages will be transferred from the consumer credit regime to the mortgage regime.

Adviser view

Danny Waters, chief executive at Hertfordshire-based Enterprise Finance, which has received full-authorisation, said: “The specialist lending market has evolved over the past few years, and we are sure that the MCD regime represents a positive step along the path to future growth and improvements.

“Full regulation of the mortgage market has helped improve standards in the home loan industry in the past decade or so and we are confident that the second-charge mortgage sector will reap similar rewards in the coming years.”