Lenders must provide an Annual Percentage Rate Comparison (APRC) and monthly payment illustration, should interest rates rise to the highest point seen in the past 20 years. The Financial Conduct Authority (FCA) has not specified how this should be carried out leaving it to lenders to decide on the best way of displaying the information.
The illustration is one of three additional pieces of information which must be included on the mortgage disclosure document when the MCD is passed into UK law on 21 March 2016.
The group of lenders, fronted by the Council of Mortgage Lenders (CML), have submitted their recommendation to the FCA and are waiting for feedback.
A spokeswoman from the CML said: “The industry is collectively considering how to produce the APRC under the new regime but ultimately this won’t replace regulatory requirements which exist. It is an area for regulators and supervisors to satisfy themselves with.”
