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Policy issues

We monitor a number of policy issues relating to the mortgage and housing markets. 

Below is an A-Z list of all the policy areas we cover. You can browse through the list or click on a letter to jump down to a section. You can also use the search on the left to look for a particular keyword or subject. 

  1. A
  2. B
  3. C
  4. D
  5. E
  6. F
  7. G
  8. H
  9. I
  10. L
  11. M
  12. N
  13. P
  14. Q
  15. R
  16. S
  17. T
  18. U
  19. V

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    A

  2. Adverse credit mortgages (also known as sub prime or non-conforming mortgages)

    21 Jul 11 | What is an adverse credit mortgage? Where can you find more information? This page also includes the results of the FSA thematic inspection from July 2007.

  3. Advice agencies

    14 Oct 11 | On October 12, the Citizens Advice Addressing Financial Difficulties working group published good practices across different creditor sectors in a report entitled 'How to do the right thing'. A summary and link to the full report is provided for members. This page also links to other relevant reports published by advice agencies and liaison between such organisations and the CML.

  4. Anti-money laundering

    16 Mar 11 | Summarises recent activity in the area of anti-money laundering, including work of the Joint Money Laundering steering group. The most recent update in the members' only area highlights the release of the FSA's industry wide review of anti-money laundering processes.

  5. APR calculations

    16 Mar 11 | Explains what the Annual Percentage Rate of Charge (APR) is and how it is calculated.

  6. Arrears and possessions in Scotland

    29 Jul 11 | The Homeowner and Debtor Protection(Scotland) Act 2010 (the 2010 Act) requires all possession cases in Scotland to call into court and requires lenders to comply with pre-action requirements. The impacts of the UK Supreme Court decision in the case of RBS v Wilson which followed the passing of the 2010 Act are also covered.

  7. Asbestos

    21 Jul 11 | Provides an overview of the current position on asbestos in the home.

  8. Assisted voluntary sales and other exits from homeownership

    19 Sep 11 | On 15 September, Shelter published research undertaken by the University of York on methods of exit from homeownership, including the role of assisted voluntary sales. This CML policy page provides links to the research and outlines some aspects for members to consider when offering assisted voluntary sales.

  9. Automated registration of title to land in Scotland (ARTL)

    30 Aug 11 | The Registers of Scotland which is the Executive Agency with responsibility for the land register in Scotland plans to introduce an electronic process to register deeds in the land register.This will include security deeds.

  10. Automated valuation models (AVMs) in the context of Basel 2 - FSA guidance

    21 Jul 11 | This page provides the FSA's view on how automated valuation models (AVMs) can be used in the context of Basel 2.

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    B

  12. Basel 3 changes in EU: CRD4

    26 Oct 11 | On 20 July 2011, the European Commission published the CRD IV Proposal, its implementation of the Basel 3 changes discussed internationally. The proposals are designed to strengthen and stabilise the banking and wider financial systems. This page summarises the key changes for residential mortgages.

  13. Basel II - a guide to capital adequacy standards for lenders

    28 May 10 | A guide to the Basel II capital adequacy standards that lenders have been required to comply with since the start of 2008.

  14. Basel II - questions and answers

    2 Jun 10 | A policy update explaining in simple terms the international capital accord, Basel II.

  15. Basel II update

    10 Jun 10 | This page provides an update on the changes to the CRD (CRD 2,3 and 4) introduced in response to the financial crisis. The CRD implements the Basel II Accord in the EU.

  16. Building societies sourcebook

    21 Jul 11 | The Financial Services Authority (FSA) has published a specialist sourcebook for building societies. It provides guidance on the financial and credit risk management functions and controls that societies should have in place. This webpage provides a summary for members.

  17. Buy-to-let

    3 Nov 10 | This page provides an overview of the buy-to-let mortgage market outlining the main issues currently facing buy-to-let and the wider private rented sector.

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    C

  19. CAT standards

    16 Mar 11 | An explanation of "CAT" standards and what the standard is for mortgage products.

  20. Claims Management Companies

    10 Aug 11 | The FSA, Ombudsman and Financial Services Compensation Scheme have published a note aimed at both firms and consumers on the role of claims management companies (CMCs). This page also provides information about CMCs and how they are regulated by the Ministry of Justice.

  21. CML Cymru: developments in retail policy and lending

    15 Apr 11 | This page provides an update on developments in retail policy and lending issues in Wales and the work of the CML Cmyru.

  22. CML voluntary statement on s101 of the Law of Property Act 1925 following the Horsham Properties v Clark and Beech case

    10 Aug 11 | The case of Horsham Properties v Clark and Beech has raised concerns that lenders will appoint receivers to avoid taking court action when seeking to possess a residential owner occupied property. The CML's Executive Committee has approved a statement on this case to allay these concerns.

  23. Codes and Statements of Practice

    16 Mar 11 | This page provides information about a number of Codes and Statements of Practice which CML members have historically been asked to comply with.

  24. Commonhold

    21 Dec 11 | Provides a brief overview of commonhold and related issues.

  25. Consumer Credit Act "wealth warnings"

    16 Mar 11 | This page explains the prescribed text for "wealth" warnings which must appear in advertisements for mortgage products.

  26. Consumer Credit Act regulated lending

    10 Aug 11 | This page has been updated with a brief summary on the OFT's irresponsible lending guidance.

  27. Contaminated Land

    21 Jul 11 | This sets out lenders' current position on contaminated land.

  28. Conveyancing and Land Registry issues

    30 Nov 11 | This deals with general conveyancing issues. E-conveyancing is dealt with on a separate web page.

  29. Conveyancing Quality, Solicitors' Client Compensation and Fraud Initiatives

    13 Dec 11 | This provides an update on the main initiatives underway relating to the conveyancing market and related areas such as solicitor client compensation and mortgage fraud.

  30. Credit reference agency searches

    21 Feb 11 | This web page provides guidance on the use of searches and leaving "footprints" on consumers' credit files.

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    D

  32. Debt and mental health - MALG and RCPsych guidelines

    12 Aug 11 | The Money Advice Liaison Group has published its second edition of guidelines for lenders dealing with customers experiencing mental health issues.

  33. Developments in private rented sector policy

    14 Aug 09 | This document provides an update on issues relating to the Rugg review, the government response to the review and other recent government announcements on the private rented sector.

  34. Distance marketing directive of consumer financial services

    21 Jul 11 | This page describes the impact of the EU Directive on Distance Marketing, which applies to secured and unsecured loans where the whole transaction has been completed without there having been any face-to-face contact between the customer and the product provider or intermediary.

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    E

  36. Electronic conveyancing

    8 Dec 10 | This page summarises the Land Registry's e-conveyancing project to date. This has been updated to reflect the Land Registry's decision to suspend the e-charges and e-transfers initiatives indefinitely.

  37. Endowment mortgages

    31 Aug 11 | This page explains the background to endowment complaints, including the ABI's Code of Practice, and summarises recent developments. The most recent update summarised the data for Q2 2008 on endowment complaints.

  38. Energy Efficiency Initiatives

    25 Nov 11 | This provides information on a range of energy initiatives recently introduced or in the process of introduction by DECC and highlights particular areas of interest for lenders.

  39. Enterprise Act 2002 - Office of Fair Trading guidance

    16 Mar 11 | Explains the implications of changes to competition and consumer law brought into effect by The Enterprise Act 2002, which came in to force on 20 June 2003, largely replacing the Fair Trading Act 1973.

  40. Equity release

    21 Jul 11 | This provides an overview of the current position on equity release, including an update on the FSA work on good practices in the lifetime mortgage market.

  41. EU Directive on responsible lending and borrowing (now called the Directive on credit agreements relating to residential property)

    21 Dec 11 | Provides an update on the EU Directive on responsible lending and borrowing - now called credit agreement relating to residential property.

  42. European Code of Conduct

    16 Mar 11 | Explains what the European Code of Conduct is and its impact for UK lenders.

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    F

  44. Financial capability

    16 Mar 11 | This page summarises the various initiatives announced by the Government and the Financial Services Authority, which are designed to enhance consumers' understanding of financial services.

  45. Financial Ombudsman Service and complaints handling

    9 Sep 11 | This page has been updated to include a summary of mortgage complaints for the first half of 2011.

  46. Financial promotions

    16 Mar 11 | This page provides information on how to meet the advertising requirements of the FSMA and CCA regimes.

  47. Financial regulation - transition to FCA, PRA and FPC

    16 Jun 11 | This page summarises the latest position on the transition towards a new structure for financial regulation. The Treasury Select Committee's report following its inquiry on the subject, published on 3 February, has been summarised for members. The members' section includes an overview of the FSA's feedback on the product intervention discussion paper and the likely actions that will be taken forward by the Financial Conduct Authority.

  48. Financial Services Authority - annual policy documents

    18 May 11 | Every year the FSA publishes a number of wide-ranging policy documents, such as its annual report, Financial Risk Outlook (in 2011 the FRO was replaced by two documents - the Retail Conduct Risk Outlook and the Prudential Risk Outlook) and the Business Plan and consultation on fees and levies. This page has been updated to include of the 2011 documents.

  49. Financial Services Compensation Scheme

    16 Mar 11 | This page briefly describes the Financial Services Compensation Scheme and summarises recent consultations concerning the operation of the scheme. The members section has been updated to include the FSCS levies for 2010/11 and some guidance on the treatment of offset mortgages.

  50. Flooding

    21 Jul 11 | This page provides information on flooding and where to get further advice. In July 2008 insurers renewed their commitment to make flood insurance available where the flood risk is adequately managed.

  51. Fraud: awareness and prevention

    11 Jan 12 | Financial crime and mortgage fraud are areas of considerable concern to all lenders. In its many guises, financial crime is capable of causing lenders significant expense and loss of public credibility. It is also an area of increasing complexity where lenders have to be aware of developments which may adversely affect their mortgage business.

  52. Fraud: FSA information from lenders scheme and supervisory action

    14 Jan 11 | This page summarises the FSA's information from lenders (IFL) scheme, as well as supervisory action and criminal prosecutions. This update summarises the outcomes of the FSA's investigations this month.

  53. Freedom of Information Act 2000

    16 Mar 11 | This page reports two decisions, both relating to the Financial Services Authority, made by the Information Commissioner under the Freedom of Information Act. The most recent update relates to the first of a series of judgments expected.

  54. FSA buy-to-let thematic review

    21 Jul 11 | The FSA has shared with lenders a summary of the findings of its thematic review of buy-to-let lending.

  55. FSA's comparative information tables

    21 Dec 11 | This page gives information about the FSA's comparative tables.

  56. FSA's Key Facts logo

    16 Mar 11 | Explains that the FSA's Key Facts logo is a registered trademark, and that where it appears on documents as prescribed by the FSA, it must be shown with the ® trademark symbol.

  57. Funding developments

    21 May 10 | This page provides a guide to recent developments in mortgage funding markets and outlines the policy measures that are being implemented or considered to combat the current market dislocation.

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    G

  59. Green mortgages

    9 Jun 11 | This page provides some background information on green mortgages.

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    H

  61. HMRC / Lender Mortgage Verification Scheme

    4 Nov 11 | This is to advise of new versions of the Mortgage Verification Scheme MOU and Service Level Agreement documentation are now on the policy page - note these documents and information are for full CML members only.

  62. House-buying and selling in Scotland - Reform

    1 Feb 12 | The Scottish Government has announced plans to reform the house-buying and selling process in Scotland by introducing the home report with effect from 1 December 2008. This will impact on members lending in Scotland and a number of issues to be considered are included for members.

  63. Housing and Regeneration Act 2008

    16 Dec 11 | The Housing and Regeneration Act 2008 was introduced as a Bill in November 2007 and passed through Public Committee (January 2008) and Report (31 March 2008) stages. It passed through the Lords for second reading stage on 28 April 2008 and Report on 30 June 2008 finally reaching Royal Assent on 22 July 2008. The main purpose of the Act is to establish a new housing and regeneration body to be known as the Homes and Communities Agency (HCA) to improve the supply and quality of housing in England and to abolish the existing regulator of housing associations (HA), setting up a new one, the Tenant Services Authority (TSA).

  64. Housing benefit reform: recent developments

    6 Sep 11 | This paper provides an overview of the government reforms to the calculation and payment of housing benefit in the private rented sector. It also addresses the issues that the reforms pose in the social rented sector for lenders involved in funding housing associations.

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    I

  66. Information sharing between first and second charge lenders

    10 Aug 11 | This page summarises the data sharing initiative being facilitated by the CML and FLA, which enables a lender with a charge on a property to share information with another lender holding a charge, helping to prevent two separate claims for possession.

  67. Islamic home finance

    8 Feb 10 | Background on Islamic home finance and an overview of the issues.

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    L

  69. Lending to foreign nationals

    16 Mar 11 | Provides guidance for lenders on what to consider when lending to foreign nationals.

  70. Lifetime mortgages - FSA capital requirement under the standardised approach

    1 Feb 08 | This paper outlines the FSA's guidance on how to calculate the capital requirement for lifetime mortgages under the standardised approach of Basel 2, confirming the treatment agreed with industry over the summer.

  71. LIFT (formerly HomeStake) - a shared equity scheme operating in Scotland

    30 Aug 11 | A shared equity scheme known as LIFT (low-cost initiative for first-time buyers) has been introduced in Scotland to assist those on low incomes who wish to buy a house but cannot afford to pay the full price.

  72. Low-cost home-ownership

    28 Oct 11 | This page gives an update on the latest policy on lending on low cost and affordable home ownership. This includes the latest Homes & Communities Agency investment prospectus as well as new guidance on shared owners at risk of possession and to include details of the new shared ownership leases to be implemented by 6 April 2010. The new leases give lenders additional protection.

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    M

  74. Modern methods of construction (MMC)

    25 Feb 11 | This is an overview of the issues posed by modern methods of construction (MMC) for lenders. It covers existing non-traditional housing as well as recently constructed dwellings.

  75. Modern methods of construction (MMC): the BBA and LPS 2020 certification

    27 May 11 | With MMC lenders require that properties are durable, that whole life costs are not excessive, repairable, adaptable and insurable. This page describes the certification schemes designed to meet lender concerns.

  76. Mortgage Code

    16 Mar 11 | This page provides a background note on the history of the Mortgage Code.

  77. Mortgage exit administration fees

    16 Mar 11 | This page summarises the FSA's activities in relation to promoting good practice on mortgage exit administration fees.

  78. Mortgage Interest Direct (MID) and Support for Mortgage Interest (SMI)

    15 Dec 11 | DWP is implementing a new billing process for Mortgage Interest Direct (MID) transaction charges. A summary is provided for members. This webpage also contains general information for members handling and maintaining MID files and Support for Mortgage Interest (SMI), including details of the 2011/12 MID transaction charge.

  79. Mortgage market review

    23 Jun 11 | The FSA's mortgage market review (mmr) aims to deliver a sustainable market for pariticipants and flexible for consumers. We agree with these high-level aims but are concerned that the detailed proposals could have broad ranging negative impacts. This page has been updated following our response to the consultation paper on disclosure and distribution.

  80. Mortgage payment protection insurance (MPPI)

    18 May 11 | This pages sets out the detail of the agreement the industry has reached with the FSA for dealing with recent and possible future changes to policy terms and conditions affecting some MPPI customers. The members section has been updated following the conclusion of the recent PPI court case.

  81. Mortgage regulation – background

    16 Mar 11 | Sets out the background to the development of the mortgage regulation regime.

  82. Mortgage regulation – cost transparency of valuation

    16 Mar 11 | Explains that lenders are required to disclose administration fees levied in connection with mortgage valuations.

  83. Mortgage regulation - Financial Services Authority (FSA) effectiveness review of MCOB

    16 Mar 11 | This summarises the results of the two stages of the FSA's review of the effectiveness of its Mortgages: Conduct of Business (MCOB) rules.

  84. Mortgage regulation - recent developments

    16 Mar 11 | This page summarises recent developments on mortgage regulation issues which are not covered on separate pages within our website. A summary of feedback from the government consultation on regulatory scope is provided for members.

  85. Mortgage rescue in England

    15 Dec 11 | The government has launched its Affordable Housing Framework document, which contains details of the mortgage rescue scheme (MRS) for 2011/12 and 2012/13. Members are provided with a summary of the main changes to MRS and recent developments.

  86. Mortgage Rescue in Scotland

    2 Sep 11 | Provides a summary of the mortgage rescue schemes in Scotland.

  87. Mortgage rescue in Wales

    25 Jul 11 | Provides a summary of the mortgage rescue scheme in Wales. Updated to include a copy of the guidance notes for local authorities for members.

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    N

  89. New build

    21 Jul 11 | This page gives information about the conveyancing and valuation of new-build properties. Including the CML's disclosure of incentives form, the associated frequently asked questions document and an updated version of the RICS Red Book guidance to valuers on the issue.

  90. Non-advised sales – scripted questions

    16 Mar 11 | The FSA's Mortgage Conduct of Business rules require mortgage lenders and mortgage intermediaries to structure non-advised mortgage sales by using scripted questions. This page sets out some of the issues which we believe you will want to take into consideration when devising the scripted questions for use by your firm.

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    P

  92. Payment protection insurance (PPI)

    19 May 11 | This webpage provides a summary of the history of the Competition Commission inquiry into the Payment Protection Insurance (PPI) market, its findings and the remedial action required. Its also tracks the regulatory actions of the FSA and FOS regarding PPI complaints handling and redress.

  93. Policy and market developments in Northern Ireland

    10 Aug 11 | This page provides updates on significant developments in Northern Ireland, including the launch of the Commission for the Future of Housing in Northern Ireland.

  94. Possessions register

    10 Aug 11 | This page provides background and guidance on the CML possessions register. The register has been withdrawn with effect from 30 June 2010 and the data held on it has been destroyed.

  95. Pre-action protocol and court rules

    1 Sep 11 | The repossession pre-action protocol in Northern Ireland has been reviewed and a new version released with effect from today. An update is provided for members. This page also summarises the position on the Civil Justice Council's pre-action protocol in England and Wales, including the most recent version which came into force on 6 April 2011.

  96. Private landlords in Scotland - regulation

    30 Aug 11 | This policy issue deals with a registration scheme for private landlords which was introduced in Scotland on 30 April 2006. It has implications for landlords, tenants and lenders.

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    Q

  98. Quantitative easing (QE)

    20 Apr 09 | This document provides an explanation of quantitative easing, answering obvious questions on it.

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    R

  100. Review of council housing finance and rents policy

    15 Apr 11 | Caroline Flint formally launched a review of council housing finance on 10 March 2008. Although the review focuses on council housing finance, it has a workstream on rents covering rent policy across both councils and housing associations. The CML is being consulted as a stakeholder at various stages of the review due to complete by Spring 2009.

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    S

  102. Sale and rent back/ sale and lease back companies

    10 Aug 11 | The FSA's full regulatory approach to sale and rent back is effective from 30 June 2010. The FSA has published its policy statement (PS10/8) detailing its final rules and the factsheet that firms will need to send to consumers during the sales process.

  103. Shortfalls on interest-only mortgages

    16 Mar 11 | On 19 May 2006, the FSA published its consumer fact sheet "Will your investment or savings plan pay off your mortgage?". The fact sheet provides information to consumers facing a shortfall at the end of the mortgage term.

  104. Social housing funding and regulation in England

    15 Apr 11 | This policy provides an up-to-date overview of affordable housing funding and regulation in England. It highlights current issues for lending to the housing association sector there.

  105. Social housing funding and regulation in Wales

    15 Apr 11 | This page provides an up to date account of social housing sector issues in Wales. It highlights issues relevant to lending for the housing association sector there.

  106. Solar photovoltaic panels - leases of roofspace

    25 Oct 11 | This provides information about lenders' typical minimum requirements with regard to consenting to a lease of roofspace for solar photovoltaic panels on residential housing. It also includes the process of gaining consent.

  107. Sustainable home-ownership initiative: an overview

    10 Aug 11 | This page provides a summary of the the sustainable home-ownership (SUSHO) initiative.

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    T

  109. Tenancy deposit protection

    22 Jul 11 | This provides an overview of the schemes for tenancy deposit protection introduced on 6 April 2007.

  110. Tenant default - termination of tenancies

    4 Nov 10 | The Law Commission has published its proposals and draft bill for reforming the law on the termination of tenancies for tenant default.

  111. The position of unauthorised tenants in Scotland when their landlord defaults on a mortgage

    18 Aug 11 | Following the introduction in England and Wales of The Mortgage Repossessions (Protection of Tenants,etc) Act 2010 the Scottish Government reconvened the Repossession Group which had previously looked at the issue of the protections available to mortgage borrowers in Scotland facing possession to consider the position of unauthorised tenancies. The Group considered that there was adequate protection in Scotland but recommended that a decision in the case of Tamouri v Clydesdale Bank should be codified into the law of Scotland. As a result the Scottish Government brought forward amendments to the Housing (Scotland) Bill 2010. This Bill completed its passage through the Scottish Parliament on 3 November 2010.

  112. The position of unauthorised tenants when a landlord defaults on their mortgage

    18 Aug 11 | This page summarises the issues surrounding enforcement action by lenders when a property is tenanted. The Mortgage Repossessions (Protection of Tenants etc) Act 2010, which came into force on 1 October 2010, provides new protection for unauthorised tenants.

  113. Training and competence

    16 Mar 11 | This page summarises the Financial Services Authority's requirements for staff to be trained and competent to carry out their jobs.

  114. Treating customers fairly

    16 Mar 11 | This issue has been updated to draw attention to further guidance issued by the FSA on how it proposes to embed TCF assessments into its supervisory process.

  115. Treating customers fairly: responsibilities of providers and distributors

    16 Mar 11 | This page summarises the key points raised in an FSA discussion paper (DP06/4) published on 28 September 2006, and the subsequent Policy Statement (PS07/11) which was published in July 2007.

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    U

  117. Unfair Commercial Practices - EU directive

    16 Mar 11 | The Unfair Commercial Practices Directive was adopted by the European Union on 11 May 2005. It was due to be transposed into UK law by 12 June 2007 and implemented 12 months later. This update draws attention to the Consumer Protection Regulations 2008 (SI 2008 No 1277), which came into effect on 26 May 2008.

  118. Unfair terms in consumer contracts regulations

    18 May 11 | This page summarises the FSA's positions relating to the fairness of terms in mortgage contracts. The FSA has published a statement on Early Repayment Charges and how they can be assessed for fairness under the Unfair Terms in Consumer Contracts Regulations 1999.

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    V

  120. Valuation advice in repossession cases

    3 Sep 09 | This paper, which was prepared by Richard White of Countrywide Surveyors, provides advice to lenders and valuers in connection with the valuation of repossessed properties. members might like to share this information with any asset managers acting on their behalf.

  121. Valuation and survey procedures - simultaneous processes

    21 Jul 11 | Explains that lenders may in some circumstances be prepared to accept a mortgage valuation carried out by a surveyor instructed by a borrower to carry out a buildings survey or homebuyer's survey and valuation.

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