MCOB 5 amplifies Principle 6 and Principle 7, which require a firm to pay due regard to the information needs of its customers and to treat them fairly.
The purpose of MCOB 5 is to ensure that, before a customer submits an application for a particular regulated mortgage contract, he is supplied with information that makes clear:
the features of that regulated mortgage contract;
the price that the customer will be required to pay under that regulated mortgage contract, to enable the customer to assess whether it is affordable to him; and
any linked deposits, any linked borrowing and any tied products.
MCOB 5 requires information to be disclosed in a consistent way to facilitate comparison between regulated mortgage contracts provided by different mortgage lenders.