FCA Second Mortgage to be Advised

FCA Second Charge Mortgage to be Advised.

The Financial Conduct Authority (FCA) has said they will be transferring its second mortgage regulation from the consumer credit section to its mortgage section and will be setting a requirement for all second charge sales to be advised.

Under its consultation paper, the FCA said it would bring the second charge regulation under its mortgage rules from March 2016.

The FCA director of policy Christopher Woolard did explain that the reason behind this change was to make sure that customers were protected from the risk of poor sales practices and affordability checks.

Similar rules that apply to primary mortgage lending such as verifying income and disclosure requirements will also be used on second charge lending as well as some new rules for the sector.