Starting date: 13 Feb 2009
Closing date: 8 May 2009
Second charge loans - sometimes referred to as 'homeowner loans' - involve consumers with an existing mortgage taking out a further loan secured against their home. Firms offering or arranging such loans must be licensed by the OFT. The guidance sets out the minimum standards the OFT expects from businesses engaged in second charge lending if they are to be considered fit to hold a licence. The guidance covers the entire lending process including selling techniques, customer care, and practices around the management of arrears. Compliance with OFT guidance is a critical consideration for the OFT when assessing whether a trader is fit to hold a consumer credit licence.
Download OFT guidance for lenders and brokers (pdf 105 kb).
Download Q&A (pdf 240 kb).
Download OFT summary of responses (pdf 113 kb).
Download the consultation version of the guidance for brokers and lenders (pdf 144 kb).
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