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MCOB 4.1 Application



This chapter applies to a firm in a category listed in column (1) of the table in MCOB 4.1.2 R in accordance with column (2) of that table.


This table belongs to MCOB 4.1.1 R

(1) Category of firm

(2) Applicable section

mortgage lender

whole chapter except MCOB 4.5 and MCOB 4.62

mortgage adviser

whole chapter

mortgage arranger

whole chapter except MCOB 4.7



This chapter applies if a firm in the course of carrying on a regulated mortgage activity:

  1. (1)

    makes, or anticipates making, a personal recommendation about; or

  2. (2)

    gives, or anticipates giving, personalised information relating to;

the customer:

  1. (3)

    entering into a regulated mortgage contract; or

  2. (4)

    varying the terms of a regulated mortgage contract entered into by the customer.

  1. (1)

    MCOB 4.4 (Initial disclosure requirements) applies only in relation to varying the terms of a regulated mortgage contract entered into by the customer in any of the following ways:

    1. (a)

      adding or removing a party;

    2. (b)

      taking out a further advance; or

    3. (c)

      switching all or part of the regulated mortgage contract from one interest rate to another.1

  2. (2)

    Otherwise, this chapter, MCOB 4, applies in relation to any form of variation of a regulated mortgage contract.


In relation toa regulated lifetime mortgage contract or a home reversion scheme, this chapter MCOB 4 is modified by MCOB 8 (Lifetime mortgages: advising and selling standards).2

MCOB 4.1.6G

MCOB 4.1.5 R means that this chapter, MCOB 4, deals with standard regulated mortgage contracts only and therefore firms should note that the scope of service rules in MCOB 4.3.1 R apply in respect of standard regulated mortgage contracts only.


If a firm is an authorised professional firm,MCOB 1.2.10 R (3) has the effect that when the firm conducts non-mainstream regulated activities with a customer, MCOB 4.4 (Initial disclosure requirements) applies. The firm is only required to provide the initial disclosure information in MCOB 4 Annex 1 or MCOB 4 Annex 2 section 7 (What to do if you have a complaint) and section 8 (Are we covered by the Financial Services Compensation Scheme (FSCS)?).


1The FSA would not view the removal of a party to the regulated mortgage contract following the death of that party (and where no other variation is proposed) as a variation for the purposes of MCOB 4.1.4 R(1).