MCOB 11.2 Purpose

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 FCA regards 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.