What do the Mcob rules apply to?
What do the Mcob rules apply to?
The MCOB rules apply to every firm that carries on a home finance activity. A ‘firm’ may be a mortgage lender, administrator, arranger or adviser. A ‘home finance activity’ may be a regulated mortgage contract, a home purchase plan or a home reversion plan.
What Mcob 11?
MCOB 11.6.1 G 26/04/2014. (1) This section sets out rules and guidance for lenders and providers under regulated mortgage contracts and home purchase plans, in relation to the assessment of affordability for the customer of these contracts.
Which section of the FCA Handbook is Mcob found?
MCOB 4.7A Advised sales.
What is regulated mortgage?
In simple terms a regulated mortgage contract is a loan secured by a charge over a residential property which is lived in by you, a family member or other close person and the purpose of the loan is not wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by you.
How many Mcob rules are there?
MCOB itself comprises 13 sections with annexes, together with two sets of transitional provisions and six schedules. The online Handbook2 is updated on a daily basis and changes can be tracked using the ‘time travel’ facility. Care needs to be taken when navigating through the content.
Does MCOB apply to business loans?
Business loans and application of MCOB If MCOB applies, a firm must either: comply with MCOB in full (disregarding the tailored provisions for regulated mortgage contracts for a business purpose in MCOB); or. comply with MCOB taking account of those tailored provisions.
What is 7 day reflection period?
You have a seven day Reflection Period during which your legal adviser will not be able to complete your mortgage without your approval. It is possible for you to waive this Reflection Period.
What is MCOB FCA?
MCOB 1.2.2 G 26/04/2014. 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.
What are the four regulated activities covered in MCOB?
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.
Was MCD based on Mcob rules?
The MCD provides a right to repay any mortgage early. Whilst this has for many years been almost universally available within the mortgage market in the UK, it was not previously a defined right. The MCD changed the position in this regard and is now reflected in the MCOB 2A.
Does Mcob apply to business loans?
What is the minimum period of reflection that a client will have to change their mind from the receipt of an offer from a mortgage lender?
Where an MCD mortgage lender provides the consumer with a binding offer, it must give the consumer a reflection period of at least seven days.
What are the provisions of MCOB for regulated mortgage contracts?
The provisions of MCOB that apply to these regulated mortgage contracts include: MCOB 13 (Arrears, payment shortfalls and repossessions: regulated mortgage contracts and home purchase plans).
Do the MCOB requirements apply to contracts concluded by email?
The requirements relating to the placing and receipt of orders do not apply to contracts concluded exclusively by exchange of e-mail or by equivalent individual communications. MCOB 2.8 provides details of the standard expected of firms where there is an obligation in MCOB requiring firms to maintain adequate records to evidence compliance.
Are the records required in MCOB readily accessible to the FCA?
The records required in MCOB must be readily accessible for inspection by the FCA. A record would be ‘readily accessible’ if it were available for inspection within two business days of the request being received.
What are The MCOB rules?
The MCOB rules were designed to improve the information available to consumers and increase consumers’ ability to make informed choices in the mortgage market. Regulations. They are a broad scheme of regulations covering: Mortgage selling; Communication; Financial promotion; Conduct of advising and selling; Disclosure of information