LegalizeThe Mortgage Credit Directive Order 2015
- (5) In this paragraph “foreign currency risk warning” means a warning, on paper or on another durable medium—
- (a) informing the borrower of a rise in the total amount payable by the borrower;
- (b) setting out, where applicable, the borrower's right to convert to an alternative currency and the conditions for doing so; and
- (c) explaining any other applicable mechanism for limiting the exchange rate risk to which the borrower is exposed.
Variable rate credits
15
Where the contract provides for variable rate credit, the creditor must—
- (a) make any indexes or reference rates used to calculate the borrowing rate clear, accessible, objective and verifiable by the borrower and the FCA; and
- (b) maintain historical records of indexes used by the creditor for calculating the borrowing rates.
Early repayment
16
- (1) Subject to sub-paragraph (3), the creditor must allow the borrower to discharge fully or partially the borrower's obligations under the consumer buy-to-let mortgage contract prior to the expiry of that contract.
- (2) Where the borrower discharges, fully or partially, the borrower's obligations prior to the expiry of the contract, the creditor must provide the borrower with a reduction in the total cost of credit to the borrower, consisting of the interest and costs for the remaining duration of the contract.
- (3) The creditor may provide that the exercise of the right referred to in sub-paragraph (1) is subject to one or more of the following conditions—
- (a) time limitations on the exercise of the right;
- (b) different treatment depending on the type of borrowing rate or on the moment the borrower exercises the right;
- (c) restrictions with regard to the circumstances in which the right may be exercised; or
- (d) if the exercise of the right falls within a period for which the borrowing rate is fixed, the existence of a legitimate interest on the part of the borrower.
- (4) The creditor is entitled to fair and objective compensation, where justified, for possible costs directly linked to the early repayment but the creditor must not impose a sanction on the borrower and the amount of compensation must not exceed the financial loss of the creditor.
- (5) Where a borrower seeks to exercise the right referred to in sub-paragraph (1), the creditor must provide the borrower without delay after receipt of the borrower's request, on paper or on another durable medium, with the information necessary to consider whether to proceed with the exercise of the right.
- (6) The information referred to in sub-paragraph (5) must include—
- (a) a quantification of the implications for the borrower of exercising the right; and
- (b) any assumptions used by the creditor in making that quantification.
- (7) The assumptions referred to in sub-paragraph (6)(b) must be reasonable and justifiable.
Flexible and reliable markets
17
The creditor must keep appropriate records concerning, where applicable, the types of property accepted by the creditor as security and the related mortgage underwriting policies used by the creditor in relation to its consumer buy-to-let mortgage business.
Information concerning changes in the borrowing rate
18
- (1) Unless sub-paragraph (3) applies, the creditor must inform the borrower of any change in the borrowing rate, on paper or another durable medium, before the change takes effect.
- (2) The information referred to in sub-paragraph (1) must include—
- (a) a statement of the amount of the payments to be made after the new borrowing rate takes effect; and
- (b) in cases where the number or frequency of the payments changes, particulars of those changes.
- (3) This sub-paragraph applies if—
- (a) the change in the borrowing rate is correlated with a change in a reference rate;
- (b) the new reference rate is made publicly available by appropriate means;
- (c) the creditor agrees with the borrower in the contract that information about any change in borrowing rate may be given to the borrower periodically; and
- (d) the information concerning the new reference rate is kept available in the premises of the creditor and communicated personally to the borrower together with the amount of new periodic instalments.
Arrears and possession
19
- (1) A creditor must exercise reasonable forbearance before initiating possession proceedings.
- (2) Any charges that the creditor imposes on the borrower arising from the borrower's default must be no greater than is necessary to compensate the creditor for costs incurred by the creditor as a result of the default.
- (3) Where the price obtained for the secured property affects the amount owed by the borrower under the contract, the creditor must take all reasonable steps to obtain the best possible price for the secured property.
- (4) Where, after possession proceedings, outstanding debt remains, the creditor must put in place measures to facilitate repayment by the borrower.
Basic equation expressing the equivalence of drawdowns on the one hand and repayments and charges on the other
20
- (1) The basic equation, which establishes the annual percentage rate of charge, equates, on an annual basis, the total present value of drawdowns on the one hand and the total present value of repayments and payments of charges on the other hand, expressed by means of the following formula—
$∑ k = 1 m C k ( 1 + X ) − t k = ∑ l = 1 m ' D 1 ( 1 + X ) − S l$where—X is the annual percentage rate of charge;mis the number of the last drawdown;k is the number of a drawdown thus,$C k$$t k$m' is the number of the last repayment or payment of charges;l is the number of a repayment or payment of charges;$D 1$$s 1$
- (2) The following remarks apply to the equation set out in sub-paragraph (1)—
- (a) the amounts paid by both parties at different times shall not necessarily be equal and shall not necessarily be paid at equal intervals;
- (b) the starting date must be that of the first drawdown;
- (c) intervals between dates used in the calculation must be expressed in years or in fractions of a year, where—
- (i) a year is presumed to have 365 days (or 366 days for leap years), 52 weeks or 12 equal months; and
- (ii) an equal month is presumed to have 30.41666 days regardless of whether or not it is a leap year;
- (d) where intervals between dates used in the calculations cannot be expressed as a whole number of weeks, months or years, the intervals must be expressed as a whole number of one of those periods in combination with a number of days;
- (e) for the purposes of paragraph (d), where using days—
- (i) every day must be counted, including weekends and holidays;
- (ii) equal periods and then days must be counted backwards to the date of the initial drawdown; and
- (iii) the length of the period of days must be—
- (aa) obtained excluding the first day and including the last day; and
- (bb) expressed in years by dividing this period by the number of days (365 or 366 days) of the complete year counted backwards from the last day to the same day of the previous year;
- (f) the result of the calculation must be expressed with an accuracy of at least one decimal place and if the figure at the following decimal place is greater than or equal to 5, the figure at the preceding decimal place must be increased by one;
- (g) the equation may be rewritten using a single sum and the concept of flows (
$s = ∑ k = 1 n A k ( 1 + X ) − t k$
where sis the present balance of flows;
- (h) for the purposes of paragraph (g), if the aim is to maintain the equivalence of flows, the value of s will be zero.
Additional assumptions for the calculation of the annual percentage rate of charge
21
- (1) The following additional assumptions apply for the purposes of calculating the annual percentage rate of charge.
- (2) If a consumer buy-to-let mortgage contract gives the borrower freedom of drawdown, the total amount of credit must be deemed to be drawn down immediately and in full.
- (3) If a consumer buy-to-let mortgage contract provides different ways of drawdown with different charges or borrowing rates, the total amount of credit must be deemed to be drawn down at the highest charge and borrowing rate applied to the most common drawdown mechanism for this type of contract.
- (4) If a consumer buy-to-let mortgage contract gives the borrower freedom of drawdown in general but imposes, amongst the different ways of drawdown, a limitation with regard to the amount of credit and period of time, the amount of credit must be deemed to be drawn down on the earliest date provided for in the contract and in accordance with those drawdown limits.
- (5) If different borrowing rates and charges are offered for a limited period or amount, the highest borrowing rate and charges must be deemed to be the borrowing rate and charges for the whole duration of the contract.
- (6) For consumer buy-to-let mortgage contracts for which a fixed rate borrowing rate is agreed in relation to the initial period, at the end of which a new borrowing rate is determined and subsequently periodically adjusted according to an agreed indicator or internal reference rate the calculation of the annual percentage rate of charge must be based on the assumption that, at the end of the fixed borrowing rate period, the borrowing rate is the same as at the time of calculation of the annual percentage rate of charge, based on the value of the agreed indicator or internal reference rate at that time, but is not less than the fixed borrowing rate.
- (7) If the ceiling applicable to the credit has not yet been agreed, that ceiling is assumed to be—
- (a) in the case of buy-to-let mortgage contracts, other than contingent liabilities or guarantees, the purpose of which is not to acquire or retain a right in immovable property or land, overdrafts, deferred debit cards or credit cards, EUR 1,500; and
- (b) in all other cases, EUR 170,000.
- (8) In the case of buy-to-let mortgage contracts other than overdrafts, bridging loans, shared equity buy-to-let mortgage contracts, contingent liabilities or guarantees and open-ended buy-to-let mortgage contracts as referred to in the assumptions set out in sub-paragraphs (10), (11), (12), (16) and (17)—
- (a) if the date or amount of a repayment of capital to be made by the borrower cannot be ascertained, it must be assumed that the repayment is made at the earliest date provided for in the buy-to-let mortgage contract and is for the lowest amount for which the buy-to-let mortgage contract provides; and
- (b) if the interval between the date of initial drawdown and the date of the first payment to be made by the borrower cannot be ascertained, it must be assumed to be the shortest interval.
- (9) Where the date or amount of a payment to be made by the borrower cannot be ascertained on the basis of the buy-to-let mortgage contract or the assumptions set out in sub-paragraphs (8), (10), (11), (12), (16) and (17) it must be assumed that the payment is made in accordance with the dates and conditions required by the creditor and, when these are unknown—
- (a) interest charges are paid together with the repayment of the capital;
- (b) non-interest charges expressed as a single sum are paid at the date of the conclusion of the buy-to-let mortgage contract;
- (c) non-interest charges expressed as several payments are paid at regular intervals, commencing with the date of the first repayment of capital, and if the amount of such payments is not known they shall be assumed to be equal amounts; and
- (d) the final payment clears the balance of capital, interest and other charges, if any.
- (10) In the case of an overdraft facility, the total amount of credit must be deemed to be drawn down in full and for the whole duration of the buy-to-let mortgage contract and, if the duration of the overdraft facility is not known, the annual percentage rate of charge must be calculated on the assumption that the duration of the credit is three months.
- (11) In the case of a bridging loan, the total amount of credit must be deemed to be drawn down in full and for the whole duration of the buy-to-let mortgage contract and, if the duration of the buy-to-let mortgage contract is not known, the annual percentage rate of charge must be calculated on the assumption that the duration of the credit is 12 months.
- (12) In the case of an open-ended buy-to-let mortgage contract, other than an overdraft facility and bridging loan, it must be assumed that—
- (a) for buy-to-let mortgage contracts the purpose of which is to acquire or retain rights in immovable property, the credit is provided for a period of 20 years starting from the date of the initial drawdown, and the final payment made by the borrower clears the balance of capital, interest and other charges, if any;
- (b) for buy-to-let mortgage contracts the purpose of which is not to acquire or retain rights in immovable property or which are drawn down by deferred debit cards or credit cards, the credit is provided for a period of 1 year starting from the date of the initial drawdown;
- (c) unless sub-paragraph (13) applies, the capital is repaid by the borrower in equal monthly payments, commencing one month after the date of the initial drawdown.
- (13) This sub-paragraph applies in cases where the capital must be repaid only in full, in a single payment, within each payment period.
- (14) If sub-paragraph (13) applies—
- (a) successive drawdowns and repayments of the entire capital by the borrower must be assumed to occur over the period of one year; and
- (b) interest and other charges must be applied in accordance with those drawdowns and repayments of capital and as provided for in the buy-to-let mortgage contract.
- (15) For the purposes of sub-paragraph (12), an open-ended buy-to-let mortgage contract is a buy-to-let mortgage contract without fixed duration and includes credits which must be repaid in full within or after a period but, once repaid, become available to be drawn down again.
- (16) In the case of contingent liabilities or guarantees, the total amount of credit must be deemed to be drawn down in full as a single amount at the earlier of—
- (a) the latest draw down date permitted under the buy-to-let mortgage contract being the potential source of the contingent liability or guarantee; or
- (b) in the case of a rolling buy-to-let mortgage contract at the end of the initial period prior to the rollover of the agreement.
- (17) In the case of a shared equity buy-to-let mortgage contract—
- (a) the payments by borrowers must be deemed to occur at the latest date or dates permitted under the buy-to-let mortgage contract; and
- (b) percentage increases in value of the immovable property which secures the shared equity buy-to-let mortgage contract, and the rate of any inflation index referred to in the contract, shall be assumed to be a percentage equal to the higher of the current Bank of England target inflation rate or the level of inflation rate in the United Kingdom at the time of conclusion of the buy-to-let mortgage contract or 0% if those percentages are negative.
- (18) In this paragraph “total amount of credit” has the meaning given in paragraph 9(6).
Signed
Mark Lancaster — Gavin Barwell — Two of the Lords Commissioners of Her Majesty's Treasury — 2015-03-25
Explanatory note
(This note is not part of the Order)
Footnotes
1972 c. 68. Section 2(2) was amended by section 27(1)(a) of the Legislative and Regulatory Reform Act 2006 (c. 51) and the European Union (Amendment) Act 2008 (c. 7), Schedule, Part 1. By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c. 51) legislation may be made under section 2(2) of the European Communities Act to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting the Agreement signed at Brussels on 17th March 1992 (Cm 2183).
S.I. 2001/1201, amended by S.I. 2003/1675, 2005/592, 2006/2383, 2008/2831, 2009/1342, 2010/671, 2011/1626 and 2012/641 and 700; there are other amending instruments but none is relevant to this Order.
Paragraph 2 was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c. 51) and paragraph 2A was inserted by section 29 of that Act.
Paragraph 26 of Schedule 2 was substituted by section 8 of the Financial Services Act 2012 (c. 21).
Paragraph 1A of Schedule 2 was inserted by section 28 of the Legislative and Regulatory Reform Act 2006 and amended by Part 1 of the Schedule to the European Union (Amendment) Act 2008 and S.I. 2007/1388.
Section 14A of the Interpretation Act 1978 (c. 30) (inserted by section 59 of the Enterprise and Regulatory Reform Act 2013 (c. 24)) provides that, where an Act provides a power to make subordinate legislation, that subordinate legislation may include a requirement to review the effectiveness of the legislation.
Articles 36A and 60B were inserted by S.I. 2003/1881.
Articles 25A and 53A were inserted by S.I. 2003/1475.
Article 61 was amended by S.I. 2001/3544, 2005/2114, 2006/3283 and 2010/2960.
Paragraphs 13(1) and 14(1) were previously amended by paragraph 2 of Schedule 4 to the Financial Services Act 2012 (c. 21) and by S.I. 2003/1473 and 2066, 2007/126 and 2013/1773.
Paragraph 19(2) was previously amended by paragraph 10 of Schedule 4 to the Financial Services Act 2012.
Paragraph 20(1) was previously amended by paragraph 11 of Schedule 4 to the Financial Services Act 2012 and by S.I. 2007/3253 and 2013/1773.
OJ L 60, 28.2.2014, p.34.
Article 61(2) was amended by S.I. 2001/3544.
Article 72I is inserted by paragraph 4 of the Schedule to this Order.
Section 388 was amended by paragraphs 1 and 27 of Schedule 9 to the Financial Services Act 2012 (c. 21) and by paragraph 13 of Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c. 33).
Article 61A is inserted by paragraph 4 of the Schedule to this Order.
Section 387 was amended by paragraphs 1 and 26 of Schedule 9 to the Financial Services Act 2012 and paragraph 12 of Schedule 3 to the Financial Services (Banking Reform) Act 2013.
S.I. 2013/1881. Article 56 was amended by S.I. 2014/366 and 376.
OJ L 305, 24.10.2014, p.1
Section 39 was amended by section 10 of, and paragraph 5 of Schedule 18 to, the Financial Services Act 2012 (c. 21) and by S.I. 2007/126 and 2013/3115.
Section 348 was amended by paragraph 26 of Schedule 2 to the Financial Services Act 2010 (c. 28), paragraph 18 of Schedule 12 to the Financial Services Act 2012 (c. 21) and paragraph 5 of Schedule 8 to the Financial Services (Banking Reform) Act 2013 (c. 33).
Section 349 was amended by section 964 of the Companies Act 2006 (c. 46), paragraph 19 of Schedule 12 to the Financial Services Act 2012 and S.I. 2006/1183.
Section 352 was amended by paragraph 54 of Schedule 26 to the Criminal Justice Act 2003 (c. 44).
Section 166 was substituted by paragraph 5 of Schedule 12 to the Financial Services Act 2012.
Sections 55L, 55Y and 55Z3 were substituted, together with the rest of Part 4A of the Act, by section 11(2) of the Financial Services Act 2012.
Section 204A was inserted by paragraphs 1 and 10 of Schedule 9 to the Financial Services Act 2012 (c. 21).
Section 380 was amended by paragraph 19 of Schedule 9 to the Financial Services Act 2012 (c. 21), paragraph 3 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 (c. 33) and S.I. 2013/1773.
Section 382 was amended by paragraph 21 of Schedule 9 to the Financial Services Act 2012, paragraph 3 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 and S.I. 2013/1773.
Section 398 was amended by paragraph 36 of Schedule 9 to the Financial Services Act 2012 and by S.I. 2013/1773.
Section 165 was amended by paragraph 15 of Schedule 2 to the Financial Services Act 2010 (c. 28), paragraph 1 of Schedule 12 to the Financial Services Act 2012 and S.I. 2013/1773.
Section 166 was substituted by paragraph 5 of Schedule 12 to the Financial Services Act 2012.
Section 167 was amended by paragraph 7 of Schedule 12 to the Financial Services Act 2012 and S.I. 2007/126.
Section 168 was amended by paragraph 33 of Schedule 7 to the Counter-Terrorism Act 2008 (c. 28), paragraph 16 of Schedule 2 to the Financial Services Act 2010, paragraph 8 of Schedule 12 to the Financial Services Act 2012 and S.I. 2007/126, 2012/2554 and 2013/1773.
Section 169 was amended by paragraph 9 of Schedule 12 to the Financial Services Act 2012.
Section 170 was amended by paragraph 10 of Schedule 12 to the Financial Services Act 2012.
Section 171 was amended by S.I. 2007/126.
Section 174 was amended by paragraph 12 of Schedule 12 to the Financial Services Act 2012.
Section 175 was amended by paragraph 13 of Schedule 12 to the Financial Services Act 2012.
Section 176 was amended by paragraph 17 of Schedule 2 to the Financial Services Act 2010, paragraph 14 of Schedule 12 to the Financial Services Act 2012 and S.I. 2005/1433.
Section 176A was inserted by paragraph 15 of Schedule 12 to the Financial Services Act 2012.
Section 177 was amended by paragraph 8 of Schedule 8 to the Financial Services Act 2012 and S.I. 2001/1090.
Section 205 was amended by paragraph 11 of Schedule 9 to the Financial Services Act 2012.
Section 206 was amended by section 10 of the Financial Services Act 2010 and by paragraph 12 of Schedule 9 to the Financial Services Act 2012.
Sections 207 to 211 were amended by paragraphs 18, 19 and 20 of Schedule 2 to the Financial Services Act 2010 (c. 28) and by paragraphs 14, 15, 16, 17 and 18 of Schedule 9 to the Financial Services Act 2012 (c. 21).
Schedule 1ZA was substituted by Schedule 3 to the Financial Services Act 2012.
Paragraph 23 was amended by paragraph 7 of Schedule 8 and paragraph 4 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 (c. 33) and by S.I. 2013/1773.
Paragraph 25 was amended by section 109 of the Financial Services (Banking Reform) Act 2013.
Section 226 was amended by paragraph 1 of Schedule 11 to the Financial Services Act 2012 and by S.I. 2009/209 and 2011/99.
Section 232A was inserted by paragraph 9 of Schedule 11 to the Financial Services Act 2012.
Section 234 was amended by paragraph 10 of Schedule 11 to the Financial Services Act 2012 and by S.I. 2009/209 and 2011/99.
Paragraph 13 was amended by paragraphs 13 and 24 of Schedule 11 to the Financial Services Act 2012 and by S.I. 2009/209 and 2011/99.
Section 127 was amended by Schedule 4 to the Consumer Credit Act 2006 (c. 14) and by S.I. 2010/1010.
Section 55(2) was substituted by S.I. 2010/1010.
Section 61B was inserted by S.I. 2010/1010.
Section 77(1) was amended by S.I. 1998/997.
Section 77A(1) was inserted by section 6 of the Consumer Credit Act 2006 (c. 14) and subsequently substituted by S.I. 2008/2826.
Section 78(1) was amended by S.I. 1998/997.
Section 97(1) was amended by S.I. 2010/1010.
Section 86D was inserted by section 11 of the Consumer Credit Act 2006.
Section 86E was inserted by section 12 of the Consumer Credit Act 2006.
Section 107 was amended by S.I. 1998/997 and S.I. 2008/1277.
Section 108 was amended by S.I. 1998/997 and S.I. 2008/1277.
Section 110 was amended by S.I. 1998/997 and S.I. 2008/1277.
Section 93 was amended by S.I. 2013/1881.
Section 94 was amended by section 29 of the Energy Act 2011 (c. 16) and by S.I. 2010/1010.
Section 95 was amended by S.I. 2010/1010.
Sections 140A to 140C were inserted by sections 19 to 21 of the Consumer Credit Act 2006 (c. 14) and subsequently amended by S.I. 2013/1881.
Section 8(3) was substituted by S.I. 2013/1881.
Section 8(1) was amended by section 2 of the Consumer Credit Act 2006.
Article 53A was inserted by S.I. 2003/1475.
Article 25A was inserted by S.I. 2003/1475.
Article 61 was amended by S.I. 2001/3544, 2005/2114, 2006/2383 and 2010/2960.
Section 39 was amended by section 10 of, and paragraph 5 of Schedule 18 to, the Financial Services Act 2012 (c. 21) and by S.I. 2007/126 and 2013/3115.
Section 55J was substituted, together with the rest of Part 4A, for the original Part IV, by section 11 of the Financial Services Act 2012 and was subsequently amended by S.I. 2013/1773 and 3115.
Section 137R was substituted (together with the rest of Part 9A) for the original Part X by section 24 of the Financial Services Act 2012 (c. 21).
Section 194B was inserted by S.I. 2013/3115.
Section 195A was inserted by S.I. 2007/126, substituted by S.I. 2011/1613 and then subsequently amended by paragraph 35 of Schedule 4 to the Financial Services Act 2012 (c. 21) and by S.I. 2012/916 and 2013/1773 and 1797.
OJ L 331 15.12.2010, p.12.
Section 347 was amended by paragraph 16 of Schedule 12 to the Financial Services Act 2012 (c. 21), section 34 of, and paragraph 11 of Schedule 3 to, the Financial Services (Banking Reform) Act 2015 (c. 33) and S.I. 2007/126 and 2013/1388.
Section 417(1) was amended by paragraph 16 of Schedule 2 to the Criminal Justice and Police Act 2001 (c. 16), section 964 of the Companies Act 2006 (c. 46), section 174 of the Banking Act 2009 (c. 1), paragraph 31 of Schedule 2 to the Financial Services Act 2010 (c. 28), section 48 of the Financial Services Act 2012 (c. 21), section 4 of the Financial Services (Banking Reform) Act 2013 (c. 33) and paragraph 71 of Schedule 4 to the Co-operative and Community Benefit Societies Act 2014 (c. 14), and by S.I. 2002/1775, 2005/1433, 2007/126, 2009/1941, 2010/22, 2012/916, 1809, 1906 and 2554, 2013/504, 1773 and 3115 and 2014/2879.
Paragraph 4E was inserted by S.I. 2013/1773.
Paragraph 5A was inserted by S.I. 2003/1473 and amended by S.I. 2013/1773.
Paragraph 7A was inserted by S.I. 2003/1473 and amended by S.I. 2013/1773 and 1797.
Paragraph 13 was amended by paragraph 2 of Schedule 4 to the Financial Services Act 2012 (c. 21) and by S.I. 2003/1473 and 2066, 2007/126, 2012/1906 and 2013/1773.
Paragraph 20ZA was inserted by S.I. 2011/1613 and was subsequently amended by paragraph 13 of Schedule 4 to the Financial Services Act 2012 and by S.I. 2013/3115.
Paragraph 21 was amended by S.I. 2003/1473.
Paragraph 25 was inserted by S.I. 2003/1473 and was subsequently amended by paragraph 18 of Schedule 4 to the Financial Services Act 2012.
Subsection (3) was substituted by S.I. 2013/1881.
Section 55C was inserted by S.I. 2010/1010 and subsequently amended by S.I. 2013/1881.
Section 60 was amended by paragraph 6 of Schedule 25 to the Enterprise Act 2002 (c. 40) and by S.I. 2010/1010 and 2013/1881 and 1882.
Section 61A was inserted by S.I. 2010/1010 and subsequently amended by S.I. 2013/1881.
Section 66A was inserted by S.I. 2010/1010.
Section 75A was inserted by S.I. 2010/1010 and subsequently amended by S.I. 2013/1881.
Section 77B was inserted by S.I. 2010/1010 and subsequently amended by section 27 of the Energy Act 2011 (c. 16) and by S.I. 2013/1881 and 2014/436.
There are amendments to section 189 but none is relevant to this Order.
OJ L 133, 22.5.2008, p. 66; Article 2(2a) was inserted by article 46 of Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property (OJ L 60, 28.2.2014, p.34).
S.I. 1983/1553. Regulation 8 was amended by S.I. 2010/1010 and 1969 and 2013/1881.
Article 3 was amended by S.I. 2006/3384 and 2013/3115; there are other amendments to article 3 but none is relevant to this Order.
Article 25A was inserted by S.I. 2003/1475.
Article 29 was amended by S.I. 2003/1476, 2006/2383 and 3384 and 2009/1342.
Article 36E was inserted by S.I. 2013/1881.
Article 36G was amended by S.I. 2013/1881 and amended by S.I. 2014/366.
Article 53D was inserted by S.I. 2009/1342.
Article 54 was amended by S.I. 2003/1475 and 1476, 2006/2383, 2009/1342 and 2013/472.
Article 54A was inserted by S.I. 2003/1475 and subsequently amended by S.I. 2006/2383 and 2009/1342.
Chapter 14A (articles 60B to 60M) was inserted by S.I. 2013/1881. Articles 60C to 60G and 60K were subsequently amended by S.I. 2014/366.
Article 61 was amended by S.I. 2001/3544, 2005/2114, 2006/2383 and 2010/2960.
Article 63A was inserted by S.I. 2002/1776, substituted by S.I. 2003/1475 and subsequently amended by S.I. 2013/1773 and 2014/366.
Article 72G was inserted by S.I. 2014/366.
OJ L 133 22.5.2008, p.66.
Article 72H was inserted by S.I. 2014/366.
S.I. 2001/1201. Paragraph 48 of the Schedule was substituted by S.I. 2003/1675 and subsequently amended by S.I. 2005/592, 2006/2383, 2008/2831, 2009/1342, 2010/671, 2011/1626 and 2012/641 and 700.
Regulation 1 was amended by S.I. 2003/1476 and 2066, 2011/1613 and 2013/1773 and 3115.
Regulation 2 was amended by S.I. 2003/1476 and 2066, 2011/1613 and 2013/1773.
Regulation 3 was amended by S.I. 2003/1476 and 2066 and 2013/1773.
Regulation 4 was amended by S.I. 2003/1476 and 2066 and 2013/1773.
Regulation 3(3) was inserted by S.I. 2003/1475.
In regulation 2 the definition of “markets in financial instruments directive information” was inserted by S.I. 2006/3413 and was subsequently amended by S.I. 2010/2628 and 2013/472 and 3115. The definition of “single market restrictions” was inserted by S.I. 2012/916 and was subsequently amended by S.I. 2013/504, 1773 and 3115. There are other amendments to regulation 2 but none is relevant to this Order.
Regulation 7A was inserted by S.I. 2013/1773.
Regulation 9 was amended by S.I. 2013/642.
Regulation 17A was inserted by S.I. 2013/1773 and amended by S.I. 2013 1797.
Section 194C is inserted by this Order.
Section 195B is inserted by this Order.
Article 3 was amended by S.I. 2007/3254 and 2014/1292.
S.I. 2004/1481. Regulation 2 was substituted by S.I. 2010/1010, as amended by S.I. 2011/1969.
S.I. 2005/1529. Paragraph 10BA was inserted by S.I. 2013/1881 and amended by S.I. 2014/366. In paragraph 28 the definition of “relevant credit agreement was inserted by S.I. 2013/1881 and amended by S.I. 2014/366.
S.I. 2010/1013. Regulation 2 was amended by S.I. 2013/1881.
Regulation 2 was amended by S.I. 2010/1969 and 2013/1881.
Schedule 1 was amended by S.I. 2010/1969, 2012/2798, 2013/1881 and 2014/366.
S.I. 2013/1881. Article 58 was amended by S.I. 2014/208, 366, 506 and 2632.
Conditions applicable to creditors and credit intermediaries
Conduct of business obligations when providing consumer buy-to-let mortgage products to consumers
Obligation to provide information free of charge to consumers
Knowledge and competence requirements for staff
Information and practices preliminary to the conclusion of the consumer buy-to-let mortgage contract
Tying and bundling practices
General information
Pre-contractual information
Information requirements concerning credit intermediaries
Adequate explanations
Annual percentage rate of charge
Calculation of the annual percentage rate of charge
Creditworthiness assessment
Obligation to assess the creditworthiness of the borrower
Property valuation
Disclosure and verification of borrower information
Advisory services
Standards for advisory services
Foreign currency loans and variable rate loans
Foreign currency loans
Variable rate credits
Sound execution of consumer buy-to-let mortgage contracts and related rights
Early repayment
Flexible and reliable markets
Information concerning changes in the borrowing rate
Arrears and possession
Calculation of the annual percentage rate of charge
Basic equation expressing the equivalence of drawdowns on the one hand and repayments and charges on the other
Additional assumptions for the calculation of the annual percentage rate of charge
Editorial notes
1972 c. 68. Section 2(2) was amended by section 27(1)(a) of the Legislative and Regulatory Reform Act 2006 (c. 51) and the European Union (Amendment) Act 2008 (c. 7), Schedule, Part 1. By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c. 51) legislation may be made under section 2(2) of the European Communities Act to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting the Agreement signed at Brussels on 17th March 1992 (Cm 2183).
S.I. 2001/1201, amended by S.I. 2003/1675, 2005/592, 2006/2383, 2008/2831, 2009/1342, 2010/671, 2011/1626 and 2012/641 and 700; there are other amending instruments but none is relevant to this Order.
Paragraph 2 was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c. 51) and paragraph 2A was inserted by section 29 of that Act.
Paragraph 26 of Schedule 2 was substituted by section 8 of the Financial Services Act 2012 (c. 21).
Paragraph 1A of Schedule 2 was inserted by section 28 of the Legislative and Regulatory Reform Act 2006 and amended by Part 1 of the Schedule to the European Union (Amendment) Act 2008 and S.I. 2007/1388.
Section 14A of the Interpretation Act 1978 (c. 30) (inserted by section 59 of the Enterprise and Regulatory Reform Act 2013 (c. 24)) provides that, where an Act provides a power to make subordinate legislation, that subordinate legislation may include a requirement to review the effectiveness of the legislation.
Articles 36A and 60B were inserted by S.I. 2003/1881.
Articles 25A and 53A were inserted by S.I. 2003/1475.
Article 61 was amended by S.I. 2001/3544, 2005/2114, 2006/3283 and 2010/2960.
Paragraphs 13(1) and 14(1) were previously amended by paragraph 2 of Schedule 4 to the Financial Services Act 2012 (c. 21) and by S.I. 2003/1473 and 2066, 2007/126 and 2013/1773.
Paragraph 19(2) was previously amended by paragraph 10 of Schedule 4 to the Financial Services Act 2012.
Paragraph 20(1) was previously amended by paragraph 11 of Schedule 4 to the Financial Services Act 2012 and by S.I. 2007/3253 and 2013/1773.
OJ L 60, 28.2.2014, p.34.
Article 61(2) was amended by S.I. 2001/3544.
Article 72I is inserted by paragraph 4 of the Schedule to this Order.
Section 388 was amended by paragraphs 1 and 27 of Schedule 9 to the Financial Services Act 2012 (c. 21) and by paragraph 13 of Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c. 33).
Article 61A is inserted by paragraph 4 of the Schedule to this Order.
Section 387 was amended by paragraphs 1 and 26 of Schedule 9 to the Financial Services Act 2012 and paragraph 12 of Schedule 3 to the Financial Services (Banking Reform) Act 2013.
S.I. 2013/1881. Article 56 was amended by S.I. 2014/366 and 376.
Section 39 was amended by section 10 of, and paragraph 5 of Schedule 18 to, the Financial Services Act 2012 (c. 21) and by S.I. 2007/126 and 2013/3115.
Section 348 was amended by paragraph 26 of Schedule 2 to the Financial Services Act 2010 (c. 28), paragraph 18 of Schedule 12 to the Financial Services Act 2012 (c. 21) and paragraph 5 of Schedule 8 to the Financial Services (Banking Reform) Act 2013 (c. 33).
Section 349 was amended by section 964 of the Companies Act 2006 (c. 46), paragraph 19 of Schedule 12 to the Financial Services Act 2012 and S.I. 2006/1183.
Section 352 was amended by paragraph 54 of Schedule 26 to the Criminal Justice Act 2003 (c. 44).
Section 166 was substituted by paragraph 5 of Schedule 12 to the Financial Services Act 2012.
Sections 55L, 55Y and 55Z3 were substituted, together with the rest of Part 4A of the Act, by section 11(2) of the Financial Services Act 2012.
Section 204A was inserted by paragraphs 1 and 10 of Schedule 9 to the Financial Services Act 2012 (c. 21).
Section 380 was amended by paragraph 19 of Schedule 9 to the Financial Services Act 2012 (c. 21), paragraph 3 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 (c. 33) and S.I. 2013/1773.
Section 382 was amended by paragraph 21 of Schedule 9 to the Financial Services Act 2012, paragraph 3 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 and S.I. 2013/1773.
Section 398 was amended by paragraph 36 of Schedule 9 to the Financial Services Act 2012 and by S.I. 2013/1773.
Section 165 was amended by paragraph 15 of Schedule 2 to the Financial Services Act 2010 (c. 28), paragraph 1 of Schedule 12 to the Financial Services Act 2012 and S.I. 2013/1773.
Section 166 was substituted by paragraph 5 of Schedule 12 to the Financial Services Act 2012.
Section 167 was amended by paragraph 7 of Schedule 12 to the Financial Services Act 2012 and S.I. 2007/126.
Section 168 was amended by paragraph 33 of Schedule 7 to the Counter-Terrorism Act 2008 (c. 28), paragraph 16 of Schedule 2 to the Financial Services Act 2010, paragraph 8 of Schedule 12 to the Financial Services Act 2012 and S.I. 2007/126, 2012/2554 and 2013/1773.
Section 169 was amended by paragraph 9 of Schedule 12 to the Financial Services Act 2012.
Section 170 was amended by paragraph 10 of Schedule 12 to the Financial Services Act 2012.
Section 171 was amended by S.I. 2007/126.
Section 174 was amended by paragraph 12 of Schedule 12 to the Financial Services Act 2012.
Section 175 was amended by paragraph 13 of Schedule 12 to the Financial Services Act 2012.
Section 176 was amended by paragraph 17 of Schedule 2 to the Financial Services Act 2010, paragraph 14 of Schedule 12 to the Financial Services Act 2012 and S.I. 2005/1433.
Section 176A was inserted by paragraph 15 of Schedule 12 to the Financial Services Act 2012.
Section 177 was amended by paragraph 8 of Schedule 8 to the Financial Services Act 2012 and S.I. 2001/1090.
Section 205 was amended by paragraph 11 of Schedule 9 to the Financial Services Act 2012.
Section 206 was amended by section 10 of the Financial Services Act 2010 and by paragraph 12 of Schedule 9 to the Financial Services Act 2012.
Sections 207 to 211 were amended by paragraphs 18, 19 and 20 of Schedule 2 to the Financial Services Act 2010 (c. 28) and by paragraphs 14, 15, 16, 17 and 18 of Schedule 9 to the Financial Services Act 2012 (c. 21).
Schedule 1ZA was substituted by Schedule 3 to the Financial Services Act 2012.
Paragraph 23 was amended by paragraph 7 of Schedule 8 and paragraph 4 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 (c. 33) and by S.I. 2013/1773.
Paragraph 25 was amended by section 109 of the Financial Services (Banking Reform) Act 2013.
Section 226 was amended by paragraph 1 of Schedule 11 to the Financial Services Act 2012 and by S.I. 2009/209 and 2011/99.
Section 232A was inserted by paragraph 9 of Schedule 11 to the Financial Services Act 2012.
Section 234 was amended by paragraph 10 of Schedule 11 to the Financial Services Act 2012 and by S.I. 2009/209 and 2011/99.
Paragraph 13 was amended by paragraphs 13 and 24 of Schedule 11 to the Financial Services Act 2012 and by S.I. 2009/209 and 2011/99.
Section 127 was amended by Schedule 4 to the Consumer Credit Act 2006 (c. 14) and by S.I. 2010/1010.
Section 55(2) was substituted by S.I. 2010/1010.
Section 61B was inserted by S.I. 2010/1010.
Section 77(1) was amended by S.I. 1998/997.
Section 77A(1) was inserted by section 6 of the Consumer Credit Act 2006 (c. 14) and subsequently substituted by S.I. 2008/2826.
Section 78(1) was amended by S.I. 1998/997.
Section 97(1) was amended by S.I. 2010/1010.
Section 86D was inserted by section 11 of the Consumer Credit Act 2006.
Section 86E was inserted by section 12 of the Consumer Credit Act 2006.
Section 107 was amended by S.I. 1998/997 and S.I. 2008/1277.
Section 108 was amended by S.I. 1998/997 and S.I. 2008/1277.
Section 110 was amended by S.I. 1998/997 and S.I. 2008/1277.
Section 93 was amended by S.I. 2013/1881.
Section 94 was amended by section 29 of the Energy Act 2011 (c. 16) and by S.I. 2010/1010.
Section 95 was amended by S.I. 2010/1010.
Sections 140A to 140C were inserted by sections 19 to 21 of the Consumer Credit Act 2006 (c. 14) and subsequently amended by S.I. 2013/1881.
Section 8(3) was substituted by S.I. 2013/1881.
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