of Business (MCOB) as one which: Involves the provision of credit to an individual or trustees; Pertains to a first legal charge on land (excluding timeshare accommodation) of which at least 40% will be occupied by the borrower, trustee or trust beneficiary, or a close relative of any such individual; and Is not a home purchase plan The Mortgage Credit Directive (MCD) Mortgage brokers in the UK are also bound by pan-European legislation, such as the EU Mortgage Credit Directive. It is the role of UK legislators to incorporate the directive into the existing UK framework. The broader distinction between consumers and businesses adopted within the MCD is, in some respects, contrary to the current UK framework, and as a result some exemptions previously enjoyed in the UK will be phased out. One example is where borrowers or relatives of borrowers will occupy less than 40% of a property, which is currently not considered regulated business; by 2016, such borrowers will be considered consumers. These transactions will therefore come to be regulated. The Mortgage Market Review (MMR) The Mortgage Market Review (MMR), a comprehensive review of the UK mortgage market which ran from 2009 to 2012 and came into force on 26 April 2014, resulted in some dramatic changes to the regulated lending environment, most centring on new, stricter affordability requirements and income and expenditure checks. There is also anecdotal evidence to suggest that the amount of time it takes to get a mortgage has significantly increased as a result of the changes. Some mortgage brokers whose in-house underwriting already matches borrowers to appropriate lenders are able to circumvent these delays, making their services more attractive. It is speculated that, because borrowers’ applications are stress-tested on the strength of their ability to make the monthly repayments, increasing numbers of borrowers are opting for mortgage terms exceeding the traditional 25 years. This results in lower repayments but a higher overall interest bill, as well as a longer period servicing debt. According to official figures from the Office for National Statistics (ONS), the percentage of mortgages under 25 years in length fell from 95% to 68% between 2002 and 2012. Mortgage brokerage in Australia Mortgage brokers have been active in Australia since the early 1980s, however they only became a dominant force in the mortgage industry during the late 1990s on the back of aggressive marketing by Aussie Home Loans and Wizard