What are Regulated mortgage activities/authorised persons/subject to MCOB?
mortgage lending, advice, arranging and administration
When is a firm exempt from regulation?
If has contract with authorised person which it can only advise on their products (appointed representative)
What is a regulated mortgage contract?
- provides credit to individual
- at least 40% used as dwelling
What mortgages are not regulated?
- business BTL
- loan to company
- loan for purchase of commercial property
What are promotions subject to MCOB?
- advertisements
- calls
- personal visits
- presentations to groups
What promotions does MCOB not apply to?
- Letters and illustrations to just one customer
- Simple promotions containing only name of product, firms name, contact, logo & brief factual details
When must an ESIS be provided to customer
Before application
What is APR?
Way of comparing similar costs of mortgages inc setting up fees/charges as well as actual interest rate
Must be calculated inc; rate of interest charged, other setting up charges payable, premiums for insurance required by firm
What is APRC?
Amount of interest applied on annual basis
Inc additional expenses/discount inc how much time left on mortgage term
If firm aware customer has gone into arrears, what must they provide
- Fact Sheet on mortgage areas within 15 working days
- Written policy & procedures
When does an intermediary not need to have PII?
- Can rely on guarantee of assets > £10m
- Subsidiary of bank, building society or insurance company
If firm holds money on behalf of client, what must they do?
- Hold in separate client bank account
- Banked within 1 day of receiving
- Interest belongs to customer
