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Status: You are viewing the version of the handbook as on 2009-03-31.

MCOB 11.2 Purpose

MCOB 11.2.1G

This chapter reinforces Principle 6 by requiring a firm to take account of a customer's ability to repay before deciding to enter into, or make a further advance on, a regulated mortgage contract or home purchase plan.1 The FSAregards it as important that customers should not be exploited by firms that lend in circumstances where they are self-evidently unable to repay through income and yet have no alternative means of repayment.