The Treasury has disappointingly, in our opinion, decided to leave second-charge mortgages outside the scope of regulation when other mortgages come under the regulation scope in 2004.
In a recent statement, the Treasury said that the decision was made because a person in default of a second-charge loan is unlikely to lose their home. The Treasury went onto say that the regulation is to protect consumers where their home is at risk and that for most second charge mortgages the Consumer Credit Act applies, with that person's home not being at risk if a second-charge mortgage was mis-sold or unsuitable.
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