De-mystifying the MCD

There are some things in this life we will never know; whether it was the chicken or the egg that came first, what the meaning of life really is and why Quality Street still insist on including coffee creams in their Christmas variety tub.  We could ponder these unfathomable mysteries for our entire lives and still get no closer to resolving them.  However, one mystery that I hope I will be able to shed light on for some of you today is what you need to need to do to ready yourself for the arrival of the Mortgage Credit Directive on the 21st of March next year. 

To put it as simply as possible, if you advise consumers on loans secured on residential properties, either as a broker or lender, and currently have full or interim consumer credit permissions, you will need to ensure you also have mortgage permissions in place ready for the 21st of March.  If you haven’t started this process yet, you really, really need to do so soon.

It can be confusing, particularly for those who are brand new to direct authorisation however, unfortunately, those who are affected don’t have the luxury of any more time to think this over.  Last week I wrote about how long the application process can take and that wasn’t scaremongering, it really is make or break time; apply now or lose the ability to trade legally. 

The alternative to taking this all on yourself is simply to engage a specialist provider to handle your application for you.  The Consumer Credit Centre, which is part of the SimplyBiz Group, has a 100% success rate in getting applications approved first time by the FCA and the cost for this service is less than an average two day’s earnings.  

An additional change as a result of the MCD, although one which will affect fewer people, is that acting as an introducer for second charge residential mortgages will become and unregulated activity from the 21st of March.  This essentially means that no permissions are required by the regulator in order to conduct this type of business. 

The SimplyBiz Group has twelve years of experience in this area and a highly skilled specialist team, and that’s just one of the reasons why AOBP has chosen to partner with us.  If you want help deciding whether you require permissions, applying for permissions or changing your application date for consumer credit authorisation, please get in touch with us urgently on 01484 443424.

David Golder
Managing Director 
Consumer Credit Centre
SimplyBiz Group