Whenever the opening or maintaining of an account is obligatory to obtain the credit, or to obtain it on the terms and conditions marketed, the total cost of credit to the consumer must include the following costs:
opening and maintaining a specific account;
using a means of payment for both transactions and drawdowns on that account;
other costs relating to payment transactions;
[Note: article 17(2) of the MCD]
The calculation of the APRC must be based on the assumption that the MCD regulated mortgage contract is to remain valid for the period agreed and that the MCD mortgage lender and the consumer will fulfil their obligations under the terms and by the dates specified in the MCD regulated mortgage contract.
[Note: article 17(3) of the MCD]
If an MCD regulated mortgage contract allows variations in the:
and they are unquantifiable at the time the APRC is calculated, the APRC must be calculated on the assumption that the borrowing rate and other charges will remain fixed in relation to the level set when the contract is entered into.
[Note: article 17(4) of the MCD]
If an MCD regulated mortgage contract contains a fixed borrowing rate in relation to the initial period of at least five years, at the end of which a negotiation on the borrowing rate must take place to agree on a new fixed rate for a further material period, the calculation of the additional, illustrative APRC disclosed in the ESIS must:
cover only the initial fixed-rate period; and
be based on the assumption that, at the end of the fixed borrowing rate period, the capital outstanding is repaid.
[Note: article 17(5) of the MCD]
the ESIS must contain an additional APRC which illustrates the possible risks linked to a significant increase in the borrowing rate. Where the borrowing rate is not capped, this information must be accompanied by a warning highlighting that the total cost of the credit to the consumer, shown by the APRC, may change.
[Note: article 17(6) of the MCD]