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MCOB 7.1 Application

Who?

MCOB 7.1.1RRP

This chapter applies to a firm in a category listed in column (1) of the table in MCOB 7.1.2 R in accordance with column (2) of that table.

MCOB 7.1.2RRP

This table belongs to MCOB 7.1.1R

(1) Category of firm

(2) Applicable section

mortgage lender

whole chapter

mortgage administrator

MCOB 7.1 - MCOB 7.3.3 R and MCOB 7.5 - MCOB 7.7.

mortgage adviser and mortgage arranger

MCOB 7.1 - MCOB 7.3.3 R and MCOB 7.6.7 R - MCOB 7.7.4 R

What?

MCOB 7.1.3RRP

This chapter applies if a firm:

  1. (1)

    enters into a regulated mortgage contract with a customer; or

  2. (2)

    administers a regulated mortgage contract which was entered into with a customer; or

  3. (3)

    arranges or advises on or makes a further advance or other variation to the terms of a regulated mortgage contract entered into with a customer.

MCOB 7.1.4RRP

This chapter applies in relation to further advances and other variations (as specified in MCOB 7.6.7 R - MCOB 7.7.4 R) regardless of whether they are variations to an existing regulated mortgage contract or are such that they involve the customer entering into a new regulated mortgage contract.

MCOB 7.1.5RRP

This chapter also applies in relation to regulated mortgage contracts in circumstances where the original mortgage lender has passed on ownership of the loan to a third party through securitisation. In such a case, the rules in MCOB 7.5 - MCOB 7.7.4 R will apply to the firm which administers the regulated mortgage contract.

MCOB 7.1.6RRP

In MCOB 7.6.7 R (Further advances), MCOB 7.6.18 R (Rate switches) and MCOB 7.6.22 R (Addition or removal of a party to the contract), if a customer submits an informal application as his first contact with a firm, the illustration required to be provided to a customer in accordance with those rules must be provided and the transaction must not proceed until the customer has made a formal application confirming that it should proceed.

MCOB 7.1.7G

Firms are reminded that in MCOB, references to "arranging" include the activities of a mortgage lender which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts to which the arranger is a party).

MCOB 7.1.8RRP

In relation to a regulated lifetime mortgage contract, this chapter MCOB 7 is modified by MCOB 9 (Lifetime mortgages: product disclosure).1