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The Mortgage Credit Directive Order 2015

S.I. 2015/910 · Made 25 March 2015 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 14 December 2023.

Financial Services And Markets

Made 25th March 2015

Coming into force in accordance with article 1

F1The Treasury are a government department designated M1for the purposes of section 2(2) of the European Communities Act 1972 M2 in relation to financial services.

M3In the opinion of the Treasury, one of the effects of this Order is that an activity which is not a regulated activity, within the meaning of the Financial Services and Markets Act 2000 , will become a regulated activity.

M4This Order contains a provision restricting an exemption provided by an earlier Order made under section 38 of the Financial Services and Markets Act 2000.

M5M6A draft of this Order has been laid before and approved by a resolution of each House of Parliament in accordance with paragraphs 2 and 2A of Schedule 2 to the European Communities Act 1972 and section 429(3) of and paragraph 26(2) of Schedule 2 to the Financial Services and Markets Act 2000 .

The Treasury make this Order in exercise of the powers conferred on them by section 2(2) of, and paragraph 1A of Schedule 2 to, the European Communities Act 1972 M7 and sections 21(9) and (15), 22(1) and (5), 38, 409 and 428(3) of the Financial Services and Markets Act 2000 M8.C1

Annotations to the whole text

Textual amendments

F1

Order revoked (14.12.2023 for the revocation of art. 33) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(xiii)

Marginal citations

M1

S.I. 2012/1759.

M2

1972 c. 68. Section 2(2) was amended by section 27(1)(a) of the Legislative and Regulatory Reform Act 2006 (c. 51) and the European Union (Amendment) Act 2008 (c. 7), Schedule, Part 1. By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c. 51) legislation may be made under section 2(2) of the European Communities Act to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting the Agreement signed at Brussels on 17th March 1992 (Cm 2183).

M3

2000 c.8.

M4

S.I. 2001/1201, amended by S.I. 2003/1675, 2005/592, 2006/2383, 2008/2831, 2009/1342, 2010/671, 2011/1626 and 2012/641 and 700; there are other amending instruments but none is relevant to this Order.

M5

Paragraph 2 was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c. 51) and paragraph 2A was inserted by section 29 of that Act.

M6

Paragraph 26 of Schedule 2 was substituted by section 8 of the Financial Services Act 2012 (c. 21).

M7

Paragraph 1A of Schedule 2 was inserted by section 28 of the Legislative and Regulatory Reform Act 2006 and amended by Part 1 of the Schedule to the European Union (Amendment) Act 2008 and S.I. 2007/1388.

M8

Section 14A of the Interpretation Act 1978 (c. 30) (inserted by section 59 of the Enterprise and Regulatory Reform Act 2013 (c. 24)) provides that, where an Act provides a power to make subordinate legislation, that subordinate legislation may include a requirement to review the effectiveness of the legislation.

Modifications

C1

Order: power to modify conferred (11.7.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 3, 86(3), Sch. 1 Pt. 2; S.I. 2023/779, reg. 2(d)

Contents

  1. Part 1: Introductory Provisions
  2. 1Citation and commencement
  3. 2Interpretation
  4. Part 2: Amendments to legislation
  5. 3Amendments to legislation
  6. Part 3: Consumer buy-to-let mortgages
  7. 3AApplication of this Part
  8. 4Interpretation of this Part
  9. 5Meaning of credit intermediary
  10. 6Meaning of advisory services
  11. 7Limitation on permission to carry on regulated activities
  12. 8Register of consumer buy-to-let mortgage firms
  13. 9Applications for entry on the register or variation of an existing entry on the register
  14. 10Determination of applications
  15. 11Procedure when refusing an application
  16. 12Registered consumer buy-to-let mortgage firm ceasing to meet the requirements for registration
  17. 13Revocation of registration
  18. 14Procedure on revocation
  19. 15Suspension of registration
  20. 16Procedure on suspension
  21. 17Appointed representatives
  22. 18Obligations of registered consumer buy-to-let mortgage firms
  23. 19Power to direct registered consumer buy-to-let mortgage firms to take appropriate action
  24. 20Functions of the FCA in relation to this Part
  25. 21Monitoring and enforcement
  26. 22Guidance
  27. 23Application of provisions of the Act to registered consumer-buy-to-let mortgage firms
  28. 24Application of procedural provisions of the Act
  29. 25Application of provisions of the Act to the FCA in respect of its supervision of consumer buy-to-let mortgage firms
  30. 26Extension of the compulsory jurisdiction of the Financial Ombudsman Scheme to registered consumer buy-to-let mortgage firms
  31. Part 4: Transitional Provisions
  32. 27Transitional provision: person with Part 4A permission to carry on an activity in relation to a regulated mortgage contract before 21st March 2016
  33. 28Transitional provision: agreements before 21st March 2016
  34. 29Transitional provision: consumer credit back book mortgage contracts
  35. 30Transitional provision: person engaged in consumer buy-to-let mortgage business before 20th March 2014
  36. 31Transitional provision: person subject to the Consumer Credit Act 1974 who chooses to adopt new rules before 21st March 2016
  37. 31ATransitional provision: first charge mortgages entered into before 31st October 2004 which are regulated credit agreements immediately before 21st March 2016
  38. 32FCA power to direct timing of applications for permission and registration
  39. Part 5: Review
  40. 33Review Repealed
  41. Signature
  42. Schedule 1: Amendments to legislation
  43. Part 1: Amendments to primary legislation
  44. 1The Financial Services and Markets Act 2000
  45. 2The Consumer Credit Act 1974
  46. Part 2: Amendments to secondary legislation
  47. 3The Consumer Credit (Agreements) Regulations 1983 Repealed
  48. 4The Financial Services and Markets (Regulated Activities) Order 2001
  49. 5The Financial Services and Markets Act 2000 (Exemption) Order 2001
  50. 6The Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001
  51. 7The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001
  52. 8The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001
  53. 9The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001
  54. 10The Financial Services and Markets Act 2000 (Gibraltar) Order 2001
  55. 11The Consumer Credit (Disclosure of Information) Regulations 2004
  56. 12The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
  57. 13The Consumer Credit (Disclosure of Information) Regulations 2010
  58. 14The Consumer Credit (Agreements) Regulations 2010
  59. 15The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013
  60. Schedule 2: Requirements for registered consumer buy-to-let mortgage firms
  61. Part: Conditions applicable to creditors and credit intermediaries
  62. 1Conduct of business obligations when providing consumer buy-to-let mortgage products to consumers
  63. 2Obligation to provide information free of charge to consumers
  64. 3Knowledge and competence requirements for staff
  65. Chapter: Information and practices preliminary to the conclusion of the consumer buy-to-let mortgage contract
  66. 4Tying and bundling practices
  67. 5General information
  68. 6Pre-contractual information
  69. 7Information requirements concerning credit intermediaries
  70. 8Adequate explanations
  71. Chapter: Annual percentage rate of charge
  72. 9Calculation of the annual percentage rate of charge
  73. Chapter: Creditworthiness assessment
  74. 10Obligation to assess the creditworthiness of the borrower
  75. 11Property valuation
  76. 12Disclosure and verification of borrower information
  77. Chapter: Advisory services
  78. 13Standards for advisory services
  79. Chapter: Foreign currency loans and variable rate loans
  80. 14Foreign currency loans
  81. 15Variable rate credits
  82. Chapter: Sound execution of consumer buy-to-let mortgage contracts and related rights
  83. 16Early repayment
  84. 17Flexible and reliable markets
  85. 18Information concerning changes in the borrowing rate
  86. 19Arrears and possession
  87. Chapter: Calculation of the annual percentage rate of charge
  88. 20Basic equation expressing the equivalence of drawdowns on the one hand and repayments and charges on the other
  89. 21Additional assumptions for the calculation of the annual percentage rate of charge
  90. Explanatory note