Mortgage Credit Directive

The Mortgage Credit Directive (MCD) is an EU framework of conduct rules for mortgage firms. We implemented these rules in the UK on 21 March 2016.

The MCD applies equally to first and second charge mortgages, so second charge mortgage regulation has moved from our consumer credit regime into our mortgage regime.

So, to do second charge mortgage business, lenders, administrators and brokers must be authorised and hold the correct permissions.

We also have powers to register and supervise firms carrying out consumer buy-to-let (CBTL) activity, as defined in the government’s legislative framework (see the Mortgage Credit Directive Order 2015).

Read how the changes will affect your firm from the links on the right.

Data reporting

The transfer of second charge regulation to our mortgage regime and the introduction of the legislative framework for CBTL activity have resulted in new data reporting requirements. These are set out in more detail in our policy statement PS15/9.  In summary, these are as follows:

Mortgage Lending and Administration Return (MLAR)

Second charge lenders and administrators will need to submit aggregated data on their regulated activities, including second charge regulated mortgage contracts, from 21 March 2016. The requirements are set out in the Handbook – see SUP 16.12.18BR, SUP 16.12.18CR, SUP 16 Annex 19AR, Annex 19AAR and Annex 19BG.

Retail Mediation Activities Return (RMAR)

From 21 March 2016, second charge intermediaries need to submit aggregated data on their regulated activities. See SUP 16.12.28AR, SUP 16 Annex 18AR and Annex 18BG.

Make changes to MCD data

Authorised firms can change their MCD data using the MCD and/or CBTL notification form (DOC)


CBTL lenders need to submit aggregated data on their CBTL lending, arrears and complaints activity from 1 April 2016.  See SUP 16.21, SUP 16 Annex 39AD (PDF) and Annex 39BG

Data can be submitted in multiple ways via Gabriel, our regulatory reporting system. Firms can submit MLAR, RMAR and CBTL returns by inputting data into the specific online forms that will be available in Gabriel. If your firm prefers to submit by web upload or direct communications (eg via XML files) the technical documents for MLAR, RMAR, and CBTL returns are available on our website. Gabriel data reference guides.

Product sales data (PSD)

As confirmed in PS15/9, we are introducing PSD reporting for second charge firms a year later than originally intended. In practice, this means firms will have to submit PSD returns on second charge mortgages entered into from 1 April 2017.  The supporting technical documents are now available: PSD reference guide

Annual percentage rate of charge (APRC) simulator

The APRC is the total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit.  For loans covered by MCD, firms need to use a new method for calculating the APRC. 

The European Commission has an MCD APRC simulator that includes examples and instructions. This may be useful if you are a mortgage lender, as it will enable you to review your calculation method.

Explore the APRC simulator


If your UK-authorised firm wants to conduct mortgage activities in an EEA state, you can apply for a 'passport' to do this, under the Mortgage Credit Directive.