Content Options

Content Options

View Options

You are viewing the version of the document as on 2022-01-01.

MCOB 12.1 Application


MCOB 12.1.1R

This chapter applies to a firm in a category listed in column (1) of the table in MCOB 12.1.2 R in accordance with column (2) of that table.


MCOB 12.1.3RRP

This chapter applies where a firm:

  1. (1)

    enters into, or makes a further advance on, a home finance transaction1; or

  2. (2)

    administers a home finance transaction;1 or

  3. (3)

    arranges or advises on a home finance transaction1 or a variation to the terms of a home finance transaction1.

MCOB 12.1.4RRP

The payment shortfall4 charges and excessive charges requirements in this chapter1 will continue to apply to a firm after a regulated mortgage contract has come to an end following the sale of a repossessed property. The excessive charges requirements will continue to apply to a firm after a home reversion plan has ended.1 References in this chapter to 'customer' will include references to a former customer as appropriate.

MCOB 12.1.5GRP

The FCA will expect a firm to ensure that charges made to a customer arising from the sale of a repossessed property and charges arising in relation to a sale shortfall1 are not excessive and are subject to the same considerations as apply with respect to payment shortfall4 charges under this chapter.


Charges under regulated mortgage contracts which had previously been regulated credit agreements


5The rules in MCOB 12.4 (Payment shortfall charges: regulated mortgage contracts) and MCOB 12.5 (Excessive charges: regulated mortgage contracts, home reversion plans and regulated sale and rent back agreements) apply to:6

  1. (1)

    second charge regulated mortgage contracts entered into before 21 March 2016, in relation to charges imposed on a customer for events occurring on or after 21 March 2016; and6

  2. (2)

    regulated mortgage contracts which are legacy CCA mortgage contracts secured by a first charge legal mortgage, in relation to charges imposed on a customer for events occurring on or after the earliest of:6

    1. (a)

      the date on which the lender first acts in compliance or purported compliance with rules in the FCA Handbook which apply to regulated mortgage contracts in respect of the contract; 6

    2. (b)

      the date from which the lender notifies the borrower in writing that it will act in compliance with such rules in respect of the contract; and 6

    3. (c)

      21 March 2017.6

MCOB 12.1.6RRP

1This chapter does not apply to a firm carrying on reversion activities or regulated sale and rent back activities3 in respect of a customer acting in his capacity as an unauthorised reversion provider or as an unauthorised SRB agreement provider.3