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Our approach to the EU Mortgage Credit Directive

The EU Mortgage Credit Directive (MCD) is required to be implemented by all EU member states, including the UK, by 21 March 2016.

This will mean small changes to the way we process your mortgage application and the documentation produced for your clients.

Take a look at the Q&A below to find out about our approach to implementing the EU MCD.


Q  Are you moving to a KFI plus top up or ESIS initially?   
A  We will be moving to a KFI plus top up initially.

Q  From what date will you consider that a binding offer agreement has been entered into?  
A   It will be considered a binding offer agreement once a completed Certificate of Title has been received from the acting solicitor.

Q  When will you implement ‘cooling-off’ periods from? 
A  Our binding offer will include a 7-day reflection period.  Offers are valid for 4 months. 

Q  What will be the process for pipeline business?   
A  Where an Offer is issued before the 21 March 2016 it will be processed under the rules by which the Offer was made. If there is need to change the Offer after 21 March 2016, then the rules applicable at the time of the change will apply.

Q   Will you offer Foreign Currency mortgages? 
A   No, similar to many other lenders in the market, we have decided not to offer this type of mortgage.

Q   Will you verify your products on sourcing systems going forward?  
A   Our product s will continue to be listed on the sourcing systems as they are at present.

Q   What approach will you take to Consumer Buy to Let?
A   Kensington will be offering consumer buy-to-let loans and will identify these by asking questions as part of its usual application process about the purpose of the borrowing.

These questions are:

  1. Since the time of purchase/inheritance have any of the applicants or a related person ever occupied the property?
  2. Do any of the applicants own any other property or properties which are occupied as a dwelling on the basis of a rental agreement?
  3. Is this a let-to-buy transaction?
  4. Is more than 50% of the loan for a business purpose? Or is the predominant purpose a business purpose?

If you do have any other questions about our approach to the EU MCD, please email us on: