The introduction of the mortgage credit directive (MCD) in March last year was a game changer in that it brought second-charge mortgages under the FCA’s mortgages and home finance: conduct of business (MCOB) rules.
Many believed it would provide a boost to the number of second charges written because of the rules requirements that effectively placed the products on the same playing field as first charges. At the very least, advisers would need to consider second charges alongside remortgages and further advances when dealing with clients who were looking to raise capital.