Related provisions for MCOB 8.5A.14

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MCOB 6A.5.1RRP
If a firm makes an offer to a consumer with a view to entering into or varying an MCD regulated mortgage contract which is a distance contract, it must provide the consumer with the following information with the offer document:(1) the EEA State or states whose laws are taken by the firm as a basis for the establishment of relations with the consumer prior to the conclusion of the MCD regulated mortgage contract;(2) any contractual clause on law applicable to the MCD regulated
MCOB 5.3.2GRP
(1) The purpose of MCOB 5.3.1 R, taken in conjunction with other rules in this chapter, is to ensure that the customer has received details of the particular home finance transaction for which he has applied, and has had the opportunity to satisfy himself that it is appropriate for him.1(2) In relation to a regulated mortgage contract, the application should identify the type of interest rate, rate of interest, and the mortgage lender at the point it is submitted by the customer
MCOB 2A.5.1RRP
Where the borrowing rate under an MCD regulated mortgage contract is variable, the MCD mortgage lender must:(1) ensure that any index or reference rate used to calculate that rate is clear, accessible, objective and verifiable by the parties to the MCD regulated mortgage contract and the FCA; and(2) keep a record of the index or reference rate used to calculate that rate for as long as the MCD regulated mortgage contract remains outstanding.[Note: article 24 of the MCD]
MIPRU 4.2F.8GRP
(1) For the purposes of MIPRU 4.2F.7R (2), a firm may use the FTSE UK gilt 10-year yield index which the Council of Mortgage Lenders makes available to its members. (2) If a firm offers a variable interest rate on a lifetime mortgage, it should calculate an average interest rate in a way which is consistent with the calculation of the discount rate.(3) To determine the projected number of years to maturity of the exposure, a firm may use the standard mortality tables published
MIPRU 4.2F.29RRP
The value of the collateral must be the market value or mortgage lending value reduced as appropriate to reflect the results of the monitoring required under MIPRU 4.2F.11R (3)(b) and MIPRU 4.2F.14 R and to take account of any prior claims on the property, such as a first-charge mortgage from another lender.
SUP 16.23.2RRP

Unless a firm is listed in the table below, this section does not apply to it where both of the following conditions are satisfied:

  1. (1)

    the firm has reported total revenue of less than £5 million as at its last accounting reference date; and

  2. (2)

    the firm only has permission to carry on one or more of the following activities:

    1. (a)

      advising on investments;

    2. (b)

      dealing in investments as agent;

    3. (c)

      dealing in investments as principal;

    4. (d)

      arranging (bringing about deals) in investments;

    5. (e)

      making arrangements with a view to transactions in investments;

    6. (f)

      assisting in the administration and performance of a contract of insurance in relation to non-investment insurance contracts;

    7. (g)

      agreeing to carry on a regulated activity;

    8. (h)

      advising on pension transfers and pension opt-outs;

    9. (i)

      credit-related regulated activity;

    10. (j)

      home finance mediation activity;

    11. (k)

      managing investments;

    12. (l)

      establishing, operating or winding up a collective investment scheme;

    13. (m)

      establishing, operating or winding up a personal pension scheme;

    14. (n)

      establishing, operating or winding up a stakeholder pension scheme;

    15. (o)

      managing a UCITS;

    16. (p)

      managing an AIF;

    17. (q)

      safeguarding and administering investments;

    18. (r)

      acting as trustee or depositary of a UCITS;

    19. (s)

      acting as trustee or depositary of an AIF; and/or

    20. (t)

      operating a multilateral trading facility.

Table: Firms to which the exclusion in SUP 16.23.2R does not apply

a UK bank;

a building society;

a EEA bank;

a non-EEA bank;

a mortgage lender;

a mortgage administrator; or

a firm offering life and annuity insurance products.
MCOB 4.8A.10RRP
(1) MCOB 4.8A.7 R does not apply in the case of a variation of a regulated mortgage contract, provided that:(a) the variation would not involve the customer taking on additional borrowing beyond the amount currently outstanding under the existing regulated mortgage contract, other than to finance any product fee or arrangement fee for the proposed new or varied contract;4(b) where the variation will (in whole or part) change from one interest rate to another, the firm has presented
MCOB 4.8A.14RRP
A firm must not enter into or arrange an execution-only sale for a regulated mortgage contract unless, except as provided in MCOB 4.8A.15 R:(1) for a new regulated mortgage contract not falling within MCOB 4.8A.10 R, the customer has identified the regulated mortgage contract he wishes to purchase, specifying to the firm at least the following information:(a) the name of the mortgage lender;(b) the rate of interest;(c) the interest rate type (that is, whether fixed, variable or
PERG 4.4.1GRP
Article 61(3)(a) of the Regulated Activities Order defines a regulated mortgage contract as a contract which, at the time it is entered into, satisfies the following conditions:(1) the contract is one where a lender provides credit to an individual or trustees (the 'borrower');(2) the contract provides for the obligation of the borrower to repay to be secured by a mortgage on land in the EEA;5 and5(3) at least 40% of that land is used, or is intended to be used, as or in connection
PERG 4.4.2GRP
The condition set out in PERG 4.4.1G (1) limits the range of borrowers to whom the protections of the mortgage regulation regime apply to individuals and trustees. If a company (which is not acting as a trustee) borrows money for the purpose of funding the company's business, and the loan is secured by a mortgage over the company's property, the mortgage contract is not a regulated mortgage contract. So a lender will not carry on a regulated activity by entering into that contract,
MCOB 1.2.2GRP
3(1) This sourcebook applies to activities carried out in respect of regulated mortgage contracts, equity release transactions, home purchase plans, and regulated sale and rent back agreements. Together, these products are referred to as home finance transactions.5555377(2) Lifetime mortgages and home reversion plans are together referred to as equity release transactions.3(3) The application of most of this sourcebook is expressed by reference to four types of firm: lenders/providers,
MCOB 1.2.21GRP
(1) 10By virtue of amendments to articles 60B, 60C and 61 of the Regulated Activities Order which came into force on 21 March 2016, certain regulated credit agreements became regulated mortgage contracts (but see the transitional provisions described in (3) below). The provisions of MCOB that apply to these regulated mortgage contracts include:(a) MCOB 7 (Disclosure at start of contract and after sale);(b) MCOB 12 (Charges); and(c) MCOB 13 (Arrears, payment shortfalls and repossessions:
MCOB 2.6A.-1RRP
5A mortgage lender may only include, or rely on, a term in a regulated mortgage contract which permits it to change the rate of interest from a fixed, discounted or other concessionary rate to the firm's standard variable rate in the event of a breach of contract if each of the following conditions is met:(1) the breach of contract is material; (2) the breach of contract is unrelated to a payment shortfall; and(3) that standard variable rate is not an interest rate created especially
MCOB 2.1.2RRP

This table belongs to MCOB 2.1.1 R

(1) Category of firm

(2) Applicable section

mortgage lender

5

whole chapter except 5MCOB 2.6A.1 R to MCOB 2.6A.18 G5 and MCOB 2.8.6 G1

6

5mortgage administrator

mortgage adviser

mortgage arranger

As for a mortgage lender, except that MCOB 2.6A.-1 R does not apply.

1home purchase provider

MCOB 2.1,, MCOB 2.5 to5MCOB 2.6, MCOB 2.6A.1 R to MCOB 2.6A.4 G, MCOB 2.6A.7 G to MCOB 2.6A.10 G, MCOB 2.7.4 R to MCOB 2.7.6 R, MCOB 2.7A2, 7MCOB 2.8.6 G and MCOB 2.97

65

1home purchase administrator

As for a home purchase provider but MCOB 2.6A.1 R to MCOB 2.6A.4 G and MCOB 2.6A.7 G do not apply

1home purchase adviser

home purchase arranger

As for a home purchase provider but MCOB 2.6A does not apply

1reversion provider

whole chapter except MCOB 2.6A.7 G, MCOB 2.7.4 R to MCOB 2.7.6 R and MCOB 2.8.6 G

6

1reversion administrator

reversion arranger

As for a reversion provider but the relevant provisions of MCOB 2.6A apply only when arranging for a home reversion plan to be entered into by a reversion occupier with, or administering a home reversion plan provided by, an unauthorised reversion provider.

1reversion adviser

As for a reversion provider but MCOB 2.6A does not apply

4SRB administrator

MCOB 2.1, MCOB 2.5 to5MCOB 2.6, MCOB 2.6A.5BR (5), MCOB 2.6A.8 R to MCOB 2.6A.11 G, MCOB 2.6A.17A R, MCOB 2.6A.18 G, MCOB 2.7.1 G to MCOB 2.7.5 R, MCOB 2.7A, MCOB 2.8.1 G to MCOB 2.8.5 G and MCOB 2.97.

65

3SRB adviser

Whole chapter except MCOB 2.6A.5 R, MCOB 2.6A.7 G, MCOB 2.6A.17 R and MCOB 2.8.6 G.4

46

3SRB agreement provider

Whole chapter except MCOB 2.6A.5 R, MCOB 2.6A.7 G, MCOB 2.6A.17 R, MCOB 2.6A.17A R, MCOB 2.6A.18 G and MCOB 2.8.6 G.4

46

4SRB arranger

Whole chapter except MCOB 2.6A.5 R, MCOB 2.6A.7 G, MCOB 2.6A.17 R and MCOB 2.8.6 G.4

6

a firm that communicates or approves a financial promotion of qualifying credit or of a home reversion plan1

1

MCOB 2.5, MCOB 2.6, MCOB 2.7 (except, when the financial promotion relates to a home reversion plan, MCOB 2.7.4 R to MCOB 2.7.6 R), MCOB 2.7A2,7MCOB 2.8 (except MCOB 2.8.6 G)1 and MCOB 2.97

1a firm that communicates or approves a financial promotion of a home purchase plan

MCOB 2.5, MCOB 2.6, MCOB 2.7, MCOB 2.7A2,7MCOB 2.8.6 G and MCOB 2.97

6
MCOB 10A.3.1RRP
(1) If an MCD regulated mortgage contract gives the consumerfreedom of drawdown, the total amount of credit must be deemed to be drawn down immediately and in full.(2) If an MCD regulated mortgage contract provides different ways of drawdown with different charges or borrowing rates, the total amount of credit must be deemed to be drawn down at the highest charge and borrowing rate applied to the most common drawdown mechanism for that type of MCD regulated mortgage contract.(3)
DISP App 3.11.2RRP
The firm (or, where applicable, a successor) must as soon as reasonably practicable, and no later than 29 November 2017, send a written communication to the complainant which:(1) informs the complainant that, despite having already made a complaint in relation to the sale of a payment protection contract, they can make a further complaint against the CCA lender in relation to a failure to disclose commission;(2) makes clear the identity of the CCA lender, where this is known to
MCOB 12.3.2GRP
A firm can choose the method it employs for calculating early repayment charges in accordance with MCOB 12.3.1 R. A firm3 should not use the 'Rule of 78' , which is not appropriate as it effectively overstates the cost to the mortgage lender.33
MCOB 10A.1.3RRP
The calculation of the APRC must be based on the assumption that the MCD regulated mortgage contract is to remain valid for the period agreed and that the MCD mortgage lender and the consumer will fulfil their obligations under the terms and by the dates specified in the MCD regulated mortgage contract.[Note: article 17(3) of the MCD]
PERG 4.11.17GRP
In the FCA's view, in circumstances other than those excluded by article 72(5D) of the Regulated Activities Order, the need for an overseas lender to be authorised or to have an exemption will depend on the location of the land.4 This is because of:4(1) the territorial limitation in the definition of regulated mortgage contract so that regulation applies only if the land is in the EEA;44(2) the general principle and practice that contracts relating to land are usually governed
CONC 4.2.10RRP
A lender or a credit broker must not encourage or induce a customer to waive the rights in CONC 4.2.5 R.[Note: paragraph 3.10 of ILG]
PERG 4.12.6GRP
2SUP 12.4.10A R to SUP 12.4.10C G explain some special requirements that apply to an appointed representative for an MCD mortgage lender or MCD mortgage credit intermediary. For example, it may be necessary for the appointed representative to be included in the Financial Services Register.
DISP App 1.3.4GRP
21Firms should make it clear that they will bear the costs of conversion if the rearrangement is made with the existing lender and to the equivalent repayment mortgage. If a complainant is not willing to rearrange with the existing lender, then the costs to be paid by the firm should normally be limited to those which would have been payable had the rearrangement been made with the existing lender and to the equivalent repayment mortgage. If it is not possible to rearrange with
DISP App 3.3.-1GRP
1This section applies to step 1. However, CCA lenders should also consider it at step 2 to the extent that it is relevant to their consideration of unfairness.