Topic 3 - Mortgage regulations Flashcards

1
Q

Types of Mortgages

A

Mortgage by demise

Mortgage by way of legal charge

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2
Q

Mortgage by demise

A

Transfer of property from seller to lender on completion of loan

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3
Q

Mortgage by way of legal charge

A

Deed states asset is charges with a debt

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4
Q

EU Mortgage credit directive

A

Member states included

Set up minimum requirements

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5
Q

Regulates Home finance

A
Lifetime mortgages
Home reversion plans
Home finance plans
Consmer buy to let
regulated mortgages
MCD regulated mortgages
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6
Q

Lifetime mortgage

A

Home owners
release. a percentage of their equity
Ends when homeowner moves on

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7
Q

retirement interest only mortgages

A
  • restricted to age

- Lender not entitled to seek full repayment until they move on

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8
Q

Home Purchase plans

A
  • Provider buys qualifying interest in land
  • Home purchaser is obliged to buy the interest from the provider
  • Occupy 40% of land
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9
Q

Home reversion plans

A
  • Provider buys property from owner
  • Former owner continues to live in the property
  • At end the property belongs to provider
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10
Q

Business buy to let

A
  • The borrower has 1+ properties
  • Sole intention lending
  • 40% or less is residential
  • Primarily for business
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11
Q

MCOB sourcebook 1

A
  1. Application and purpose
    2.Conduct of business standards
    2A. Mortgage credit directive
    3A. Financial Promotions
    3B. MCD general information
  2. Advising and selling standards
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12
Q

MCOB sourcebook 2

A

4A. Additional MCD advising and selling standards
5. Pre-application disclosure
5A. MCD Pre-application disclosure
6. Disclosure at the offer stage
6A.MCD disclosure at the offer stage
7.Disclosureat start of contract and after sale

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13
Q

MCOB sourcebook 3

A
7A. Additional MCD disclosure
7B.MCD further advances 
8. Equity release: advising and selling standards
9. Equity release: product disclosure 
10.Annual percentage rate
10A.MCD annual percentage rate of charge
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14
Q

MCOB sourcebook 4

A
  1. responsible lending and responsible financing of home purchase plan
    11A. Additional MCD responsible lending requirements
  2. Charges
  3. Arrears, payment shortfalls and repossessions
    14.MCD article 3 credit agreements
    15.MCOB 15: P2P home finance activities
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