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

MCOB 12.5 Excessive charges: regulated mortgage contracts and home reversion plans

MCOB 12.5.1RRP

A firm must ensure that any regulated mortgage contract or home reversion plan1 that it enters into does not impose, and cannot be used to impose, excessive charges upon a customer.

MCOB 12.5.2RRP

A firm must ensure that its charges to a customer in connection with the firm entering into, making a further advance or further release on, administering, arranging or advising on a regulated mortgage contract or2 home reversion plan, or arranging or advising on a variation to the terms of a regulated mortgage contract or home reversion plan are not excessive.1

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MCOB 12.5.3GRP

When determining whether a charge is excessive, a firm should consider:

  1. (1)

    the amount of its charges for the services or products in question compared with charges for similar products or services on the market;

  2. (2)

    the degree to which the charges are an abuse of the trust that the customer has placed in the firm; and

  3. (3)

    the nature and extent of the disclosure of the charges to the customer.

MCOB 12.5.4GRP

Mortgage lenders 1are also subject to requirements relating to responsible lending (see MCOB 11).

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