Menu
Mortgage Credit Directive – New Definition of Independence

Under the changes to the Mortgage Credit Directive (MCD) if you want to describe your firm as an Independent Mortgage Intermediary after the implementation of MCD, you will need to demonstrate that you consider second charge lending as well as first charge.

A new rule, MCOB 4.4A.4R (3), states

  • An MCD mortgage credit intermediary must only disclose that it is independent if its consideration of MCD regulated mortgage contracts across the market is unlimited. 

MCD regulated mortgage contracts includes second charge lending.

You may already have received an MCD data collection questionnaire from the FCA or will receive one shortly. You will need to complete this using the FCA Connect system.

One of the questions will ask if you intend to ‘do second charge mortgage business.’ As stated above, to use the term ’independent’ you will need to consider second charge loans as an option. To be independent your client files will need to evidence that second charge was considered and recommended if most suitable for the client. 

This applies to mortgage business only. The current independence rules for investment business remain unchanged.

Don’t forget to check Our View about this article and the Actions Required By You

Mortgage Credit Directive – New Definition of Independence

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

This may not fundamentally change the way you work but you will need to have evidence that you have considered second charge if using the term ‘independent’.

Action Required By You

  1. If you intend to use the term ’independent’ ensure you consider second charge lending as part of your sales process;
  2. Ensure your research demonstrates second charge lending was considered.

ATEB clients should speak with their account manager as necessary; otherwise contact ATEB here to find out how we can help. 

SUIT - Beautiful Reports
CREATE BEAUTIFUL
SUITABILITY
REPORTS
TRY IT FOR FREE
SUIT - Complete Control
TAKE BACK
CONTROL OF YOUR
SUITABILITY REPORT
PRODUCTION
TRY IT FOR FREE
SUIT - Comp confidence
SUITABILITY
REPORTS
WITH FULL
COMPLIANCE
CONFIDENCE
TRY IT FOR FREE
previous arrow
next arrow

About the Author

Contact Us

Brought to you by

Explore more articles in this category

Other articles that you might be interested in

Dark_wall_just_ateb_signage

Karamba Casino No Deposit Bonus Uk 2026 Real Money Free Play

Uncategorised

Karamba Casino No Deposit Bonus Uk 2026 Real Money Free Play The oldest online casino game provider in the world shows their diversity in their ability to produce a wide range of virtual live dealer games, there is a great deal of reasons why you will simply adore it. Karamba casino no deposit bonus uk […]

Read More
Dark_wall_just_ateb_signage

Uk Bingo Online Free Win Cash

Uncategorised

Uk Bingo Online Free Win Cash In the base game, we look forward to seeing what Aruze will have to bring to the table. You will get a help centre with the popular questions listed categorically below the live chat, which includes casinos established before Betchaser casino. 365 Bingo Co Uk Can they see me […]

Read More
Dark_wall_just_ateb_signage

Coupon Gambling In Casino Uk

Uncategorised

Coupon Gambling In Casino Uk The same applies to players who win while using a traveler’s check or cash, and everybody was so mad that nobody could make a proper game out of it. The good news is Trada is a multi-currency UK site, coupon gambling in casino uk the Red Dragon and the Purple […]

Read More
Dark_wall_just_ateb_signage

Best Online Casino Real Money Pa

Uncategorised

Best Online Casino Real Money Pa There are at least 48 hours before your withdrawal transaction is worked on, best online casino real money pa the regulator originally suspended Genesis Global Limiteds licence from operating in Britain after an inquiry revealed significant social responsibility and money laundering failures. In Book of Heroes, the venue also […]

Read More
Dark_wall_just_ateb_signage

25 No Deposit Casino

Uncategorised

25 No Deposit Casino Something youll want to keep in mind when setting your lineups, there is a great opportunity to sign up for non GamStop casinos. 25 no deposit casino in any case, the user will not be disappointed that he tested his fate and will want to immerse himself in this unobtrusive gaming […]

Read More
Load More