MCOB 7.1 Application

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.

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.

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.

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.

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.

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