Enterprise granted MCD approval
The Mortgage Credit Directive will be fully implemented by March 2016.
Jackie Steel, group compliance officer of Enterprise Finance, said: “The last few years have seen significant regulatory change for the second charge mortgage market with the move away from the Office of Fair Trading regime, to the interim period under FCA consumer credit governance, to the absorption into the mainstream mortgage legislation in March 2016.
“We are very pleased our application has been successful and that it was approved as smoothly and quickly as it has been. This means we can continue our planning and preparations for the next year and beyond with the confidence that all our systems and processes are exactly in line with what the regulator is expecting.”
Enterprise was granted permissions 11 weeks after submitting its application to the FCA.
Danny Waters, chief executive of Enterprise Finance, added: “Full regulation of the mortgage market has helped improve standards in the home loan industry in the past decade or so and we are confident that the second charge mortgage sector will reap similar rewards in the coming years.
“Consumers will feel more comfortable using products that are regulated in the same way as existing loans they have already taken out and intermediaries that have hitherto ignored the versatility and flexibility of second charge mortgages will be more alive to their potential once they are governed in the same way as conventional home loans.
“These are exciting times for the industry and we are glad to be ahead of the curve in receiving our necessary permissions so far in advance of the implementation date.”