1. Thursday 10 th March 2016 Teesside Property Forum European Mortgage Credit Directive (MCD)

2. Approved Mortgage Solutions Ltd, North East BIC, Sunderland, SR5 2TA Tel: 0191 516 6894 Email: info@approvedmortgagesolutions.co.ukinfo@approvedmortgagesolutions.co.uk Website: www.approvedmortgagesolutions.co.uk European Mortgage Credit Directive How it Will Affect Buy to Let

3. Approved Mortgage Solutions Ltd, North East BIC, Sunderland, SR5 2TA Tel: 0191 516 6894 Email: info@approvedmortgagesolutions.co.ukinfo@approvedmortgagesolutions.co.uk Website: www.approvedmortgagesolutions.co.uk European Mortgage Credit Directive Adopted 4 th February 2014 Becomes Law 21 st March 2016

4. Approved Mortgage Solutions Ltd, North East BIC, Sunderland, SR5 2TA Tel: 0191 516 6894 Email: info@approvedmortgagesolutions.co.ukinfo@approvedmortgagesolutions.co.uk Website: www.approvedmortgagesolutions.co.uk CURRENTLY: Residential Mortgage Regulated by Financial Conduct Authority BTL (Family Member) 40% Regulated by Financial Conduct Authority All Insurances Including Landlords Insurance Regulated by Financial Conduct Authority BTL (All Others) Not Regulated at all Commercial * 2 nd Charge Lending Regulated by Financial Conduct Authority under the Consumer Credit Act POST MCD: Residential MortgageRegulated by Financial Conduct Authority All Insurances Regulated by Financial Conduct Authority Consumer BTL (New Category) Regulated by HM Treasury Business BTL Not Regulated at all Commercial Regulated by Financial Conduct Authority under the Consumer Credit Act 2 nd Charge Lending Now Regulated by Financial Conduct Authority under MCOB Rules

5. Approved Mortgage Solutions Ltd, North East BIC, Sunderland, SR5 2TA Tel: 0191 516 6894 Email: info@approvedmortgagesolutions.co.ukinfo@approvedmortgagesolutions.co.uk Website: www.approvedmortgagesolutions.co.uk Consumer Buy to Let Any Buy to Let Mortgage where one or more of the applicants are first time landlords. Accidental Landlords where clients cant sell their own home so Remortgage on a Let to Buy and mortgage the onwards purchase. Inherited Property where a client inherits a property and decides to Remortgage and Let rather than sell. Estimated 11% of all Buy to Let transactions (circa 18000)

6. Approved Mortgage Solutions Ltd, North East BIC, Sunderland, SR5 2TA Tel: 0191 516 6894 Email: info@approvedmortgagesolutions.co.ukinfo@approvedmortgagesolutions.co.uk Website: www.approvedmortgagesolutions.co.uk How MCD Impacts Landlords Credit Worthiness - More Questions around personal income / expenditure Affordability - More proof of ongoing affordability; including potential pension forecasts - More supporting documents required - Longer to process applications - Higher calculations for rental coverage 2nd Charge- More underwriting / due diligence - More options in time Paperwork- Illustrations will be different (20 year high interest rate) - Mortgage offers will be different (binding offers) - Applications will have more detailed questions around personal income and expenditure and future plans.

7. Approved Mortgage Solutions Ltd, North East BIC, Sunderland, SR5 2TA Tel: 0191 516 6894 Email: info@approvedmortgagesolutions.co.ukinfo@approvedmortgagesolutions.co.uk Website: www.approvedmortgagesolutions.co.uk Any Questions ?