update & future market developments Lorna OBrien 3 December 2014 - - PowerPoint PPT Presentation

Equity Release mortgages – MCD update & future market developments

Lorna O’Brien 3 December 2014

1

Overall approach to Mortgage Credit Directive (MCD)

• To be implemented on 21 March 2016
• Separate tasks for HMT and FCA
• MCD is not meant to be a

comprehensive regulatory framework

• We plan to rely on existing regulation

where we can

• We want to minimise disruption and

costs

2

MCD and equity release

• MCD does not apply to ‘equity release

credit agreements’

• MCD definition differs to the FCA

definition of a ‘lifetime mortgage’ used to apply tailored protections

• One definition or two?

3

Future market developments

May be driven by:

• Ageing population
• More consumers carrying mortgage

debt into retirement

• Interest-only mortgages

Market developments? Hybrid products?

4