Mortgage lenders say they are relieved there are no clashes between the European mortgage directive and the Mortgage Market Review but warn it will be a challenge to meet the two-year timetable.
Negotiations concluded earlier this week and the directive will introduce EU-wide rules to toughen up responsible lending practices, protect consumers and encourage cross-border lending.
Most of the rules are already being implemented in the UK under the MMR but the FSA warned in 2011 that some aspects could clash.
The new rules should be implemented in September with a two-year window to become UK law. The MMR rules come in to force in April 2014.
Building Societies Association head of mortgage policy Paul Broadhead says: “We are relieved there is no direct conflict with the MMR given the FSA decided to move ahead with it prior to the final EU directive.
“The challenge will come from the two-year implementation period when there will be a lot of detail to work through, particularly with the MMR requirements as well.”
Council of Mortgage Lenders director general Paul Smee says: “There will inevitably be additional work for both regulators and lenders to ensure the requirements are fully reflected in UK rules, especially as they come hot on the heels of the implementation of the FCA’s new domestic requirements for mortgages.”