January 29, 2016

Enterprise Finance comments on the impact of MCD regulation

eu flag mcd regulations second charge mortgages

Harry Landy, Sales Director of Enterprise Finance, comments: Preparations for the Mortgage Credit Directive implementation have been underway for some time now, so lenders and intermediaries should be ready for the new regime starting in March. We’ve organised a host of events to help brokers found out more about how MCD will affect their businesses and are happy for any intermediaries to attend.

“It should be a case of business as usual for most second charge lenders as the new rules come into force. Most lenders already behave responsibly, so the regulation shouldn’t cause any problems. The MCD will help to protect the long-term future of the sector by increasing protection for borrowers.

“After the implementation of the MCD, we should see an uplift in demand for secured loans. Once the regulation is in place, more borrowers will view secured loans as a viable alternative to remortgaging. This will allow secured lenders to steal a share of business that would have previously been taken by the remortgage market. The increased borrowing options for consumers will only be beneficial, as they have more chance of finding the right loan to suit their needs.

“The new rules should also enhance the reputation of the industry with consumers and intermediaries alike, raising its profile and further boosting lending. We’ve already seen a rapid expansion in the industry during 2015, with monthly lending exceeding £90m between August and October according to the Enterprise Finance Secured Loan Index. The MCD should help this growth further, driving total annual lending over the £1bn milestone by opening it up to an even larger market.”


This comment first appeared in Loan Talk