Offer Stage Disclosures and Distance Contract Offer Document Inclusions | Mortgage and Home Finance Conduct of Business MCOB | Template for FCA Applications and Authorised Firms

Offer Stage Disclosures

The company uses a compliant ‘Offer Document’ that is always provided to a customer in a durable medium and enables the customer to review and check the features and price of the home finance transaction before they enter into it.

Our offer document is provided in a durable medium always includes an updated and suitably adapted illustration (for a regulated mortgage contract) or financial information statement (for a home purchase plan) so that the customer can compare it with the one they will have received prior to applying for the home finance transaction.

[Insert a copy of your standard Offer Document here if applicable]

The Illustration provided with the Offer Document complies with the requirements set out in section 6.10.5 of this manual, but has the modifications made as per MCOB 6.4.4.

The ‘Offer Document’ has been authorised for use by the Compliance Officer and contains a prominent statement: –

• Of the period for which the offer is valid
• Explaining, where the regulated mortgage contract contains features, such as additional unsecured borrowing facilities, which could result in the customer borrowing more money, that where such features are used, the amount of the customer’s debt will increase
• Explaining when any interest rate change on the regulated mortgage contract takes effect
• Explaining the consequences that might arise from the customer not entering into the regulated mortgage contract, including any fees that the customer has paid which will not be reimbursed
• Explaining that once the regulated mortgage contract is concluded there will be no right of withdrawal
• Explaining that although no right of withdrawal exists the customer will have a right to repay the regulated mortgage contract in accordance with the terms of the regulated mortgage contract
• Information on how to complain to us about the services that we provide and whether the complaint can be referred to the Financial Ombudsman Service
• Where we are aware at the point that the offer is made to the customer that our interest in the regulated mortgage contract will be assigned (by sale or transfer) and we will no longer be responsible for setting interest rates and charges, the offer document always:
  • states this
  • states where known, who will be responsible for setting interest rates and charges after the sale or transfer
• Where we make an offer to a customer with a view to entering into a regulated mortgage contract, we always provide the customer, along with the offer document, with a tariff of charges that could be incurred on the regulated mortgage contract
• Where the regulated mortgage contract has any linked borrowing or linked deposits, details of the charges on these linked facilities are always included in our tariff of charges

6.11.7 Distance Contract Offer Document Inclusions

Where The company makes an offer to a consumer with a view to entering into a regulated mortgage contract which is a distance contract, we always provide the consumer with the following information with the offer document: –

• The EEA State or States whose laws are taken by us as a basis for the establishment of relations with the customer prior to the conclusion of the regulated mortgage contract
• Any contractual clause on law applicable to the regulated mortgage contract or on competent court, or both
• The language in which the contract is supplied and in which we will communicate during the course of the regulated mortgage contract
• Where we have not provided previously:
  • all of the contractual terms and conditions of the regulated mortgage contract to which the offer document relates
  • an appropriate status disclosure statement
  • our Firm Reference Number
  • confirmation that the customer can check the FCA’s Consumer Credit or Financial Services Register on the FCA’s website for details about us