Topic 3 - Mortgage regulations Flashcards
Types of Mortgages
Mortgage by demise
Mortgage by way of legal charge
Mortgage by demise
Transfer of property from seller to lender on completion of loan
Mortgage by way of legal charge
Deed states asset is charges with a debt
EU Mortgage credit directive
Member states included
Set up minimum requirements
Regulates Home finance
Lifetime mortgages Home reversion plans Home finance plans Consmer buy to let regulated mortgages MCD regulated mortgages
Lifetime mortgage
Home owners
release. a percentage of their equity
Ends when homeowner moves on
retirement interest only mortgages
- restricted to age
- Lender not entitled to seek full repayment until they move on
Home Purchase plans
- Provider buys qualifying interest in land
- Home purchaser is obliged to buy the interest from the provider
- Occupy 40% of land
Home reversion plans
- Provider buys property from owner
- Former owner continues to live in the property
- At end the property belongs to provider
Business buy to let
- The borrower has 1+ properties
- Sole intention lending
- 40% or less is residential
- Primarily for business
MCOB sourcebook 1
- Application and purpose
2.Conduct of business standards
2A. Mortgage credit directive
3A. Financial Promotions
3B. MCD general information - Advising and selling standards
MCOB sourcebook 2
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
MCOB sourcebook 3
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
MCOB sourcebook 4
- responsible lending and responsible financing of home purchase plan
11A. Additional MCD responsible lending requirements - Charges
- Arrears, payment shortfalls and repossessions
14.MCD article 3 credit agreements
15.MCOB 15: P2P home finance activities