Contract Start and After Sale Disclosures | Mortgage and Home Finance Conduct of Business MCOB | Template for FCA Applications and Authorised Firms

Contract Start & After Sale Disclosures

As a regulated firm The company we are required under MCOB 7, to provide specific information to our customers at the start of a regulated mortgage contract and during the after sales period, to enable them to check that the regulated mortgage contract has been set up in accordance with their requirements and to notify them of the first and subsequent payments.

Our aim is to ensure that customers are always aware of the features, payments and consequences of the contract they have entered into and to help keep them on track going forwards with any payments, charges and transactions of the home finance. As with all of the information that we provide to our customers, these disclosures are added to our materials in a clear, non-misleading and fair manner, in a durable medium and in a timely manner.

Where we provide services to a customer in relation to a: –

• Further advance
• Rate switch
• Addition or removal of a party to a regulated mortgage contract

We also ensure that an illustration and KFI/ESIS document are supplied in a durable medium, making clear the price and features associated with the specific variation.

6.12.1 Information Disclosure Before First Payment

Where the company enters into a regulated mortgage contract with a customer, we ensure that the following information is always provided prior to the customer making the first payment under that regulated mortgage contract: –

1. The amount of the first payment required
2. The amount of the subsequent payment(s) if different from the first payment
3. The method by which the payment will be collected and the date of collection of the first and subsequent payment
4. Confirmation of whether, in connection with the regulated mortgage contract, insurance or investments have been purchased through us
5. The first premium (and subsequent premium where different) for any insurance or investments purchased through us in connection with the regulated mortgage contract
6. Confirmation of whether the insurance or investment premiums stated above are to be collected with the mortgage payment or separately (where the latter applies, we always give details of this included in the written information provided)
7. Confirmation of whether the regulated mortgage contract is a repayment mortgage or interest-only mortgage, or a combination of both
8. If all or part of the regulated mortgage contract is an interest-only mortgage, a reminder to the customer to check that a repayment strategy is in place, if the repayment strategy is not provided by us
9. What to do if the customer falls into a payment shortfall, explaining the benefit of making early contact with us, providing the address and telephone number of a contact point within our company and drawing the customer’s attention to the arrears charges set out in the tariff of charges
10. Confirmation of any linked borrowing and linked deposits
11. Whether the regulated mortgage contract permits the customer to make any overpayments or underpayments of the amounts due

[If your firm provides the above disclosures on the ESIS or via a standard document templates, please insert a copy here or reference the location in this manual or on an external system]