MOGI AppA Appendix A: brief description of terms in Part II
Defined term |
Meaning |
Arrears |
A shortfall that a consumer has in payments due on his mortgage equivalent to two or more regular payments. |
Distance contract |
A contract concluded without any face-to-face contact with the consumer (by telephone, internet, email or post). |
Durable medium |
In a form that a consumer can keep and refer to as needed. It can include paper, disk and e-mail. |
Financial promotion |
An advertisement, brochure, mailshot, telemarketing or sales aid. |
Illustration |
The key facts illustration (KFI) describing the costs and features of a mortgage. |
Lifetime mortgage |
A mortgage aimed at older consumers and designed to release equity to provide a lump sum or income. |
Mortgage adviser |
A firm that advises on regulated mortgages. |
Mortgage arranger |
A firm that arranges regulated mortgages or makes arrangements with a view to regulated mortgages. |
Mortgage intermediary |
A firm that advises, arranges or makes arrangements with a view to regulated mortgages. |
Mortgage mediation activity |
Advising on, arranging or making arrangements with a view to regulated mortgages. |
Non-real time qualifying credit promotion |
A financial promotion relating to a mortgage that is not made in during a personal visit, telephone call or other interactive manner, for example a newspaper advertisement, TV commercial, leaflet or a mailshot. |
Personal recommendation |
A recommendation given to a specific person (or group or people) to take out or vary a particular regulated mortgage. |
Qualifying credit |
Any secured credit provided by a lender who is authorised for mortgage activities. |
Real time qualifying credit promotion |
A financial promotion made in the course of a telephone call, personal visit or any other interactive manner (but not including a financial promotion made by e-mail). |
Regulated mortgage contract (RMC) |
A loan to an individual secured by first charge on land in the UK, where the property is to be at least 40% used by the borrower or a member of his immediate family. Second charge loans are therefore not RMCs and buy-to-let mortgages are extremely unlikely to be RMCs. |