This section of the Guide explains the rules that apply to product disclosure for lifetime mortgages in chapter 9 of MCOB (MCOB 9). These rules apply to firms who sell lifetime mortgages.
The lifetime mortgage KFI is different from the standard version to reflect the different risks and characteristics of lifetime mortgage products. For example, there is a general explanation of lifetime mortgages, sections setting out benefits and risks and a projection of the increase in debt where interest rolls up.
The rules about the content of the lifetime mortgage KFI are in MCOB 9.4. You will need to read them in detail if you are creating your own KFI, but you should be familiar with them even if you are using KFIs provided by lenders or a sourcing system. You should make sure you are comfortable that a KFI is an accurate reflection of the lifetime mortgage product you are advising or giving information on. You must also explain to the consumer the importance of reading and understanding the KFI.
The post sale requirements are broadly the same as for standard mortgages, but some of the individual rules have been amended to allow for the particular characteristics of lifetime mortgages. For example, the rules on further advances include details of how we expect you to deal with the estimated term of the lifetime mortgage.