A firm must, on first making contact with a customer when it anticipates giving personalised information or advice on entering into a new home purchase plan, ensure that the customer is, or has been, provided with an appropriate initial disclosure document or combined initial disclosure document in a durable medium.
If the initial contact in (1) is by telephone, a firm must:
(if the call is with a view to concluding a distance home purchase mediation contract) give the following information before proceeding further:
Additional requirements for distance home purchase mediation contracts with retail customers
include the Key facts logo in a prominent position at the top of the statement;
state that mortgages are available and that the customer should think carefully about the product appropriate to his needs;
describe the significant features of the plan, including:
how the home purchase plan works;
the nature of the customer's commitment;
when and how a customer's commitment is reviewed;
any significant restrictions of the plan; and
the charges that a customer may incur under the plan, including the reason for, and amount of, each charge, when they are payable, whether they will be reimbursed and, if so, when;
describe the risks associated with the plan, including:
the risks to the customer if he fails to keep up repayments and the circumstances in which this might occur; and
risks to the customer of the home purchase provider failing or disposing of any of its obligations or rights (including its interest in the property) to a third party (taking into account steps that will be taken by the home purchase provider to mitigate such risks); and
state the importance of obtaining independent legal advice.