The Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB) governs the relationship between mortgage lenders and borrowers in the United Kingdom. They were issued in October 2003 by The

Financial Services Authority The Financial Services Authority (FSA) was a quasi-judicial body accountable for the financial regulation, regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investmen ...

. They apply to Regulated Mortgage Contracts which are entered into on or after 31 October 2004.The

became the

Financial Conduct Authority The Financial Conduct Authority (FCA) is a financial regulation, financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The ...

in April 2013.

Task

The task of the Mortgage Conduct of Business is consumer protection, industry stability, and healthy competition between financial service providers.

Definitions

A 'Regulated Mortgage Contract' is a loan on the security of a first legal mortgage on land in the United Kingdom of which at least 40% is used as or in connection with a dwelling by the borrower. This loan can be to an individual or a trustee. A credit agreement secured on land that is not a regulated mortgage contract, for example because the borrower is not an individual or a trustee, may be a regulated credit agreement to which the CCA and CONC apply. 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 * Terms of offer documents * Duty to treat customers fairly * Duty to keep records *

Equity release Equity release is a means of retaining use of a house or other asset which has capital value, while also obtaining a lump sum or a steady stream of income, using the value of the asset. Pricing of no negative equity guarantee The UK Prudent ...

schemes * Arrears and repossessions * Calculation of the

annual percentage rate The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mort ...

* Calculation of total charge for credit * Charges 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.

Weblink

* {{official, https://www.fca.org.uk/

References

Mortgage industry of the United Kingdom