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