With mortgages shortly to be regulated by the Financial Services Authority, the voluntary organisation currently in place, the Mortgage Code Compliance Board, has started to wind down. Applications for membership cannot be accepted after 30 September 2004.
With effect from the 31 October 2004 the Mortgage Code will cease to apply and regulation will take over. The Mortgage Code is a voluntary code subscribed to by most mortgage lenders and intermediaries.
Our View
It is a shame that the MCCB and Mortgage Code will cease. It has worked well over the years for lenders, intermediaries and consumers alike. However, there is a need for stronger regulation to protect the public and the FSA has taken on this task. The MCCB helpline will close from 31 October, as will the website. Consumers will be directed to the FSA in order for queries to be dealt with.