The future of MCD post-Brexit

Just four months on from the implementation of the Mortgage Credit Directive, the question arose of whether the new rules could now be scrapped. The MCD is EU legislation, of course, and if the UK is no longer part of the Union why should we continue to follow it?

The regulator quickly addressed the matter stating that regulation would be unaffected unless the government made any changes. Of course, the government is in the process of making one or two other changes at the moment so one would assume mortgage market regulation will not be a priority just yet.

To add my two cents’ worth, whilst I can understand why some brokers might jump at the chance to scrap MCD - (particularly those who have yet to get on board with it but that’s another topic for another day) - the fact is we all put a lot of time and effort into implementing these new rules and, once any creases are ironed out, ultimately MCD makes the market safer for consumers.

Processes, though more cumbersome, are in the interests of the borrowers, ensuring ill-suited or inappropriate products are not given. Advised sales ensure that due care and diligence is given on what are sizeable financial commitments. And bringing seconds in line with first charge mortgages means customers have more options available to them and are more likely to find the right solution.

The hard part is done. Now we’re just getting used to the new way of life. What’s the point in going backwards now?