MCOB 12.5 Excessive charges: regulated mortgage contracts and home reversion plans
A firm must ensure that any regulated mortgage contract or home reversion plan1 that it enters into does not impose, and cannot be used to impose, excessive charges upon a customer.
A firm must ensure that its charges to a customer in connection with the firm entering into, making a further advance or further release on, administering, arranging or advising on a regulated mortgage contract or home reversion plan, or arranging or advising on a variation to the terms of a regulated mortgage contract or home reversion plan are not excessive.1
1When determining whether a charge is excessive, a firm should consider:
- (1)
the amount of its charges for the services or products in question compared with charges for similar products or services on the market;
- (2)
the degree to which the charges are an abuse of the trust that the customer has placed in the firm; and
- (3)
the nature and extent of the disclosure of the charges to the customer.
Mortgage lenders 1are also subject to requirements relating to responsible lending (see MCOB 11).
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