Lenders and brokers are again having to gear up for major regulatory change when the European Mortgage Credit Directive arrives next year – this is while we are still adjusting to the MMR and other macro-prudential interventions.
The UK has a robust regulatory regime and we welcome the Government’s championing of our argument that the MCD offers little extra value. Efforts to minimise its impact are laudable, such as the Treasury’s ruling that it will not be applied to ‘pipeline’ cases.
However, bringing accidental landlords into the folds of regulated lending will be costly and time-consuming, while switching from KFI to the European ESIS will also require system developments.
Chances are there will be an impact on lending once the transition gathers pace. We are once more expected to apply extra layers of regulation while maintaining access to credit for an expanding housing market.
Ensuring a sensible launch of the MCD is a big issue. We should not underestimate the costs of what seems like a never-ending series of regulatory impositions, nor the impact these have on the access to and cost of mortgages, let alone innovation, service standards and customer satisfaction.