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Status: You are viewing the version of the handbook as on 2005-06-30.

MOGI 2.7 Lifetime mortgages: product disclosure (MCOB 9)

Introduction

MOGI 2.7.1G

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.

Pre-sale disclosure - general

MOGI 2.7.2G

You must give consumers personalised product information in the form of a KFI early in the sales process.

MOGI 2.7.3G

Because some areas of the MCOB 9 rules are very similar to those for standard mortgages in MCOB 5, we have included tables at MCOB 9.3.2 R to MCOB 9.3.4 R to show how the standard mortgage rules should be amended for lifetime mortgages.

Content of the key facts illustration

MOGI 2.7.4G

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.

MOGI 2.7.5G

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.

Post-sale disclosure

MOGI 2.7.6G

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.