Reference Case Number: FOI9162
Freedom of Information: Right to know request:
How many mortgage lending applications had been authorised in the last three years and whether all such authorisation had obtained signed heads of terms prior to authorisation for a three-year funding line?
FCA response:
We can confirm that in the last 3 years, the FCA has authorised approximately 13 firms that applied for home finance permissions. Of these, 11 firms secured funding commitments prior to being granted those permissions. For the remaining 2 firms, 1 firm was not originating new loans and therefore funding was not required, and for the other firm, the FCA placed a restriction limiting the level of lending to £5000 only until the firm could demonstrate it had appropriate resources. The requirement for funding is considered in all authorisation cases where this is considered relevant to the proposed business model.