MOGI AppA Appendix A: brief description of terms in Part II

Arrears

A shortfall that a consumer has in payments due on his mortgage equivalent to two or more regular payments.

Distance contract

A contract concluded without any face-to-face contact with the consumer (by telephone, internet, email or post).

Durable medium

In a form that a consumer can keep and refer to as needed. It can include paper, disk and e-mail.

Financial promotion

An advertisement, brochure, mailshot, telemarketing or sales aid.

Illustration

The key facts illustration (KFI) describing the costs and features of a mortgage.

Lifetime mortgage

A mortgage aimed at older consumers and designed to release equity to provide a lump sum or income.

Mortgage adviser

A firm that advises on regulated mortgages.

Mortgage arranger

A firm that arranges regulated mortgages or makes arrangements with a view to regulated mortgages.

Mortgage intermediary

A firm that advises, arranges or makes arrangements with a view to regulated mortgages.

Mortgage mediation activity

Advising on, arranging or making arrangements with a view to regulated mortgages.

Non-real time qualifying credit promotion

A financial promotion relating to a mortgage that is not made in during a personal visit, telephone call or other interactive manner, for example a newspaper advertisement, TV commercial, leaflet or a mailshot.

Personal recommendation

A recommendation given to a specific person (or group or people) to take out or vary a particular regulated mortgage.

Qualifying credit

Any secured credit provided by a lender who is authorised for mortgage activities.

Real time qualifying credit promotion

A financial promotion made in the course of a telephone call, personal visit or any other interactive manner (but not including a financial promotion made by e-mail).

Regulated mortgage contract (RMC)

A loan to an individual secured by first charge on land in the UK, where the property is to be at least 40% used by the borrower or a member of his immediate family. Second charge loans are therefore not RMCs and buy-to-let mortgages are extremely unlikely to be RMCs.