MCOB 5.2 Purpose

MCOB 5 amplifies Principle 6 and Principle 7, which require a firm to pay due regard to the information needs of its customers and to treat them fairly.

The purpose of MCOB 5 is to ensure that, before a customer submits an application for a particular regulated mortgage contract, he is supplied with information that makes clear:

1. (a)

   the features of that regulated mortgage contract;

2. (b)

   the price that the customer will be required to pay under that regulated mortgage contract, to enable the customer to assess whether it is affordable to him; and

3. (c)

   any linked deposits, any linked borrowing and any tied products.

MCOB 5 requires information to be disclosed in a consistent way to facilitate comparison between regulated mortgage contracts provided by different mortgage lenders.