MCOB 6

Disclosure at the offer stage

MCOB 6.1

Application

Who?

MCOB 6.1.1

See Notes

handbook-rule
This chapter applies to a firm in a category listed in column (1) of the table in MCOB 6.1.2 R in accordance with column (2) of that table.

MCOB 6.1.2

See Notes

handbook-rule

This table belongs to MCOB 6.1.1R

What?

MCOB 6.1.3

See Notes

handbook-rule

This chapter applies with respect to an offer made by a firm to a customer with a view to the firm:

  1. (1) entering into a home finance transaction;
  2. (2) varying the terms of a home finance transaction entered into by the customer in any of the following ways:
    1. (a) adding or removing a party;
    2. (b) making a further advance; or
    3. (c) switching all or part of the regulated mortgage contract from one interest rate to another;

(whether or not the customer agrees to enter into the home finance transaction or variation).

MCOB 6.1.4

See Notes

handbook-rule
In relation to a lifetime mortgage, this chapter, MCOB 6, is modified by MCOB 9 (Equity release: product disclosure).

MCOB 6.1.5

See Notes

handbook-rule
In MCOB 6, a reference to an offer to enter into a home finance transaction is to be read as including a reference to an offer to vary an existing home finance transaction in a manner specified in this section if the context so requires.

MCOB 6.1.6

See Notes

handbook-guidance
Firms may diverge from the requirements in MCOB 5.6 (Content of illustrations) where necessary to reflect the fact that they are providing an illustration for a variation as part of an offer document.

MCOB 6.2

Purpose

MCOB 6.2.1

See Notes

handbook-guidance
  1. (1) MCOB 6 amplifies Principle 6 and Principle 7. The purpose of MCOB 6 is to ensure that a customer receives a clear offer document to enable him to check the features and price of the home finance transaction before he enters into it. The offer document should include an updated and suitably adapted illustration (for a regulated mortgage contract) or financial information statement (for a home purchase plan) so that the customer can compare it with the one he received before he applied for the home finance transaction.
  2. (2) [deleted]

MCOB 6.3

General

MCOB 6.3.1

See Notes

handbook-guidance
MCOB 2.2.6 R (Clear, fair and not misleading communication) applies to information provided to a customer by a firm in accordance with this chapter.

MCOB 6.3.2

See Notes

handbook-rule
Any communication required by MCOB 6 to be provided to a customer by a firm must be in a durable medium.

MCOB 6.4

Mortgages: content of the offer document

MCOB 6.4.1

See Notes

handbook-rule
  1. (1) If a firm offers to entering into a regulated mortgage contract with a customer, it must provide the customer with an offer document containing an illustration.
  2. (2) The firm's offer in the offer document must be on the basis of the information set out in the illustration provided in accordance with (1).

Accuracy of the offer document

MCOB 6.4.2

See Notes

handbook-guidance
MCOB 5.4.7 G acknowledges that the offer document and illustration provided before an application may not always be the same, even where the customer's requirements have not changed. However, the FSA expects the offer document to be an accurate reflection of the actual costs of the regulated mortgage contract.

Records

MCOB 6.4.3

See Notes

handbook-rule
  1. (1) A firm must make an adequate record of each offer document which it issues to a customer in accordance with MCOB 6.
  2. (2) The record required by (1) must be retained for a year from the date that the offer document is issued to the customer.
  3. (3) If, in accordance with MCOB 6.5 (Information to be provided in the offer document or separately), information is included in a separate document that is sent with the offer document, that information must also be retained as part of the record required by (1).

Modifications to the illustration

MCOB 6.4.4

See Notes

handbook-rule

The illustration provided as part of the offer document in accordance with MCOB 6.4.1 R (1) must meet the requirements of MCOB 5.6 (Content of illustrations) with the following modifications:

  1. (1) the illustration must be suitably adapted and revised to reflect the fact that the firm is making an offer to a customer and updated to reflect changes to, for example, the interest rate, charges, the exchange rate or the APR required by MCOB 10 (Annual Percentage Rate), at the date the illustration is issued;
  2. (2) MCOB 5.6.2 R (2) (a) does not apply;
  3. (3) MCOB 5.6.15 R (Information to be included at the head of the illustration) does not apply;
  4. (4) MCOB 5.6.16 R (Section 1: 'About this illustration') is replaced by the following: "Section 1: 'About this offer document': Under the section heading 'About this offer document', the following text must be included:
    1. (a) 'You are not bound by the terms of this offer document until [insert relevant circumstances, including the names of any documents that must be signed. For example "you have signed the legal charge and the funds are released for your mortgage"]. We are required by the Financial Services Authority (FSA) - the independent watchdog that regulates financial services - to provide you with this offer document.'; and
    2. (b) (unless MCOB 6.6.1 R applies) "You should compare this offer document with the key facts illustration given to you before you applied for this mortgage, to see how the details may have changed.'";
  5. (5) Unless (b) applies, MCOB 5.6.17 R (Section 2: 'Which service are we providing you with?') is replaced with the following: "Section 2: 'Which service did we provide you with?'
    1. (a) Under the section heading 'Which service did we provide you with?' the following text should be presented as two options each with a 'check box', one of which must be marked prominently to indicate the level of service provided to the customer: 'We have recommended, having assessed your needs, that you take out this mortgage. We have not recommended a particular mortgage for you. You must make your own choice whether to accept this mortgage offer.'";
    2. (b) If the service described in MCOB 5.6.17 R (Section 2: 'Which service are we providing you with?') was provided by another firm, MCOB 5.6.17 R is replaced by the following: "Section 2: 'Which service were you provided with?' Under the section heading 'Which service were you provided with?' the following text should be presented as two options each with a 'check box' one of which must be marked prominently to indicate the level of service provided to the customer: '[name of firm] recommended that you take out this mortgage. [name of firm] did not recommend a particular mortgage for you. You must make your own choice whether to accept this mortgage offer.'";
  6. (6) MCOB 5.6.29 R (2) does not apply;
  7. (7) MCOB 5.6.52 R to MCOB 5.6.53 G is replaced by the following: Where all or part of the regulated mortgage contract is an interest-only mortgage, the illustration in the offer document must:
    1. (a) clearly state that the payments on the regulated mortgage contract cover only interest, and not the capital borrowed;
    2. (b) state the repayment vehicle the customer intends to use where the firm knows details of the specific repayment vehicle from the application by the customer; if the firm does not know how the customer intends to repay the capital borrowed, the firm must clearly state that the repayment vehicle is unknown, and must provide the customer with a clear reminder of the need to put suitable arrangements in place; and
    3. (c) include a statement reminding the customer to check regularly the performance of any investment used as a repayment vehicle, to see whether it is likely to be adequate to repay the capital at the end of the term of the regulated mortgage contract;
  8. (8) the fees recorded in the illustration that is part of the offer document in accordance with MCOB 5.6.66 R (1) must include any fees paid or payable by the customer;
  9. (9) MCOB 5.6.69 R (5) is replaced by the following: '(where the fee is payable or has been paid to the mortgage lender), whether or not the fee is refundable, and if so, the extent to which it is refundable;'
  10. (10) [deleted]
  11. (11) where additional features are included in accordance with MCOB 5.6.92 R and these are credit facilities regulated by the Consumer Credit Act 1974, the relevant parts of Section 12 of the illustration that is part of the offer document must include the following text: "This credit facility is regulated under the Consumer Credit Act 1974. Please refer to the separate credit agreement which describes the facility and the terms on which the credit is available";
  12. (12) The text required by MCOB 5.6.102 R (2) (a) or (b) should be adapted to include, or tell the customer where they can find, the information required by MCOB 6.5.4 R; and
  13. (13) MCOB 5.6.113 R applies to the illustration that is part of the offer document if the illustration given out in accordance with MCOB 5 (Pre-application disclosure) was issued by, or on behalf of, a mortgage intermediary.

MCOB 6.4.5

See Notes

handbook-guidance
  1. (1) One consequence of MCOB 6.4.4 R(5)(b) is that the mortgage lender will need to know, for each individual transaction arranged by a mortgage intermediary, whether or not the customer has received advice from that mortgage intermediary.
  2. (2) When complying with MCOB 6.4.4 R(5)(b), mortgage lenders may wish to include a statement after the level of service in Section 2 confirming that the level of service described was given by another firm, and explaining that they, as the mortgage lender, are not responsible for the level of service given, and that the customer should contact the other firm if they have any queries about the level of service provided. For example: "If you have any queries about this service, you should contact [Name of firm]. [Name of lender] is not responsible for the advice or information you received."

MCOB 6.4.6

See Notes

handbook-rule

In adapting and revising the illustration that is part of the offer document in accordance with MCOB 6.4.4 R(1) a firm must:

  1. (1) avoid amending the format of the information required by MCOB 5.6 (Content of illustrations) where possible, since this could result in the illustration in the offer document being difficult to compare with the illustration originally provided to the customer in accordance with MCOB 5.5.1 R;
  2. (2) use, where possible, the same headings, ordering of information, and language that appeared in the illustration provided in accordance with MCOB 5.6 (Content of illustrations); and
  3. (3) only change section headings where necessary (for example 'What you have told us' could be renamed 'Your mortgage requirements').

MCOB 6.4.7

See Notes

handbook-rule

In adapting and revising the illustration in accordance with MCOB 6.4.4 R(1), a firm may:

  1. (1) add extra information at the beginning and end of the illustration, such as conditions which are not covered by the illustration;
  2. (2) include greater detail within each of the specified sections than that included in an illustration provided in accordance with MCOB 5 (Pre-application disclosure); and
  3. (3) leave blank, except for the text 'not applicable', sections that are irrelevant, such as:
    1. (a) the section on insurance (see MCOB 5.6.73 R to MCOB 5.6.83 G), where the customer is not buying insurance from the firm and the firm does not require insurance to be in place; and
    2. (b) the section and sub-sections on additional features (see MCOB 5.6.92 R to MCOB 5.6.112 G) if there are no additional features available.

MCOB 6.4.8

See Notes

handbook-guidance
Examples of the additional information that should be included in the offer document in accordance with MCOB 6.4.7 R (1) or MCOB 6.4.7 R (2) is information about any retentions or reinspections that will be required by the firm.

MCOB 6.4.9

See Notes

handbook-rule
A firm must ensure that the illustration forms the main, and an integral, part of the offer document.

MCOB 6.4.10

See Notes

handbook-guidance
MCOB 6.4.9 R prevents a firm from preparing a separate illustration and simply adding it to the existing material provided to the customer at the offer stage.

Other information contained in the offer

MCOB 6.4.11

See Notes

handbook-rule

A firm must ensure that the offer document contains a prominent statement:

  1. (1) of the period for which the offer is valid;
  2. (2) explaining, where the regulated mortgage contract contains features, such as additional unsecured borrowing facilities, which could result in the customer borrowing more money, that where such features are used, the amount of the customer's debt will increase;
  3. (3) explaining when any interest rate change on the regulated mortgage contract takes effect. This statement must be used, for example, to explain cases where an annual review system is used;
  4. (4) explaining the consequences that might arise from the customer not entering into the regulated mortgage contract, including any fees that the customer has paid which will not be reimbursed;
  5. (5) explaining that once the regulated mortgage contract is concluded there will be no right of withdrawal; and
  6. (6) explaining that although no right of withdrawal exists the customer will have a right to repay the regulated mortgage contract in accordance with the terms of the regulated mortgage contract.

MCOB 6.4.12

See Notes

handbook-guidance
In complying with MCOB 6.4.11 R (6) the firm is not required to repeat in this section of the offer document the cash amounts of the early repayment charges set out in the illustration provided as part of the offer document. The firm may instead insert a reference to the relevant section of that illustration.

MCOB 6.4.13

See Notes

handbook-rule
A firm must ensure that the contact details section of the offer document (as required by MCOB 5.6.122 R) also includes information on how to complain to the firm about the services provided by the firm in relation to the regulated mortgage contract and whether or not complaints may subsequently be referred to the Financial Ombudsman Service.

MCOB 6.4.14

See Notes

handbook-guidance
DISP 1 requires a firm to deal promptly and fairly with complaints, including referring to another firm complaints about that other firm's services.

MCOB 6.4.15

See Notes

handbook-guidance
In addition to the information required by MCOB 6.4.13 R, a firm may include information about how to complain to any other firm about the services that firm provided to the customer in relation to the regulated mortgage contract. For example, where the customer received advice from another firm, a mortgage lender may include contact details for the firm that provided the advice.

MCOB 6.4.16

See Notes

handbook-rule

If the firm knows at the point that the offer is made to the customer that its interest in the regulated mortgage contract will be assigned (by sale or transfer) and the firm will no longer be responsible for setting interest rates and charges, the offer document must:

  1. (1) state this; and
  2. (2) state, where known, who will be responsible for setting interest rates and charges after the sale or transfer.

MCOB 6.4.17

See Notes

handbook-rule
Where MCOB 6.4.16 R applies, if the name of the party who will be responsible for setting interest rates and charges after the sale or transfer is not known at the point the offer is made, the firm must notify the customer of this as soon as it becomes known.

MCOB 6.4.18

See Notes

handbook-guidance
MCOB 6.4.16 R and MCOB 6.4.17 R could apply where the ownership of a regulated mortgage contract is transferred to a third party through securitisation.

MCOB 6.5

Mortgages: information to be provided in the offer document or separately

Tariff of charges

MCOB 6.5.1

See Notes

handbook-rule
If a firm makes an offer to a customer with a view to entering into a regulated mortgage contract, it must provide the customer, along with the offer document, with a tariff of charges that could be incurred on the regulated mortgage contract.

MCOB 6.5.2

See Notes

handbook-rule
If the regulated mortgage contract has any linked borrowing or linked deposits, details of the charges on these linked facilities, for example charges payable on a linked current account, must be included in the firm's tariff of charges.

MCOB 6.5.3

See Notes

handbook-guidance
A firm may include the tariff of charges as an integral part of the offer document, or provide it separately along with the offer document.

Mortgage credit cards

MCOB 6.5.4

See Notes

handbook-rule
If a firm makes an offer to a customer with a view to entering into a regulated mortgage contract that includes a mortgage credit card, it must provide the customer with information explaining that the card will not give the customer the statutory rights associated with traditional credit cards.

MCOB 6.5.5

See Notes

handbook-guidance
A firm may include the information described in MCOB 6.5.4 R as an integral part of the offer document, or provide it separately along with the offer document.

Distance contracts with retail customers

MCOB 6.5.6

See Notes

handbook-rule

If a firm makes an offer to a consumer with a view to entering into a regulated mortgage contract a which is a distance contract, it must provide the consumer with the following information with the offer document:

  1. (1) the EEA State or States whose laws are taken by the firm as a basis for the establishment of relations with the customer prior to the conclusion of the regulated mortgage contract;
  2. (2) any contractual clause on law applicable to the regulated mortgage contract or on competent court, or both;
  3. (3) the language in which the contract is supplied and in which the firm will communicate during the course of the regulated mortgage contract; and
  4. (4) if not provided previously:
    1. (a) all of the contractual terms and conditions of the regulated mortgage contract to which the offer document relates; and
    2. (b)
      1. (i) confirmation that the mortgage lender is authorised and regulated by the FSA;
      2. (ii) the mortgage lender's FSA register number; and
      3. (iii) confirmation that the customer can check the FSA register on the FSA's website www.fsa.gov.uk/register/ or by contacting the FSA on 0845 606 1234.

MCOB 6.6

Mortgages: offer documents in place of illustrations

MCOB 6.6.1

See Notes

handbook-rule
If a firm provides a customer with an offer document in place of an illustration in accordance with MCOB 5.5.1 R (3), it must take reasonable steps to ensure that it provides the offer document in accordance with the requirements for providing an illustration in MCOB 5.4 (Illustrations: general) and MCOB 5.5 (Provision of illustrations).

MCOB 6.7

Business loans

MCOB 6.7.1

See Notes

handbook-rule
  1. (1) Where the regulated mortgage contract is for a business purpose, a firm may choose to provide a customer with a business offer document instead of the offer document referred to in MCOB 6.4.1 R.
  2. (2) If a firm provides a customer with a business offer document in accordance with (1), it must ensure that:
    1. (a) an updated business illustration, as required by MCOB 5.7 (Pre-application disclosure for business loans), forms part of the business offer document; and
    2. (b) subject to the tailoring required by MCOB 5.7 (Pre-application disclosure for business loans), the business offer document complies with MCOB 6.4 (Content of the offer document).

MCOB 6.7.1A

See Notes

handbook-guidance
Firms are reminded that in accordance with MCOB 1.2.3 R, they should either comply in full with MCOB or comply with all tailored provisions in MCOB that relate to business loans. Therefore, a firm may only follow the tailored provisions in MCOB 6.7 if it also follows all other tailored provisions in MCOB.

MCOB 6.7.2

See Notes

handbook-guidance
MCOB 6.7.1 R (2) means, for example, that the required text in MCOB 6.4.4 R (7) should be replaced by text that satisfies the requirements for business illustrations in MCOB 5.7.5 R

MCOB 6.7.3

See Notes

handbook-guidance
A firm may supplement the first paragraph of text prescribed in MCOB 6.4.4 R (5)(a) to clarify that, while the regulated mortgage contract is not binding until the relevant mortgage document has been signed and funds have been released, the business offer document may form part of a wider set of negotiated facilities and that the customer is separately bound by these.

MCOB 6.8

Home purchase plans

Offer document

MCOB 6.8.1

See Notes

handbook-rule
  1. (1) If a firm offers to enter into a home purchase plan with a customer, it must ensure that the customer is, or has been provided with an appropriate offer document in a durable medium which includes:
    1. (a) the period for which the offer is valid;
    2. (b) an explanation of the consequences that might arise from the customer not entering into the home purchase plan including details of any fees that the customer has paid which will not be refunded;
    3. (c) an explanation of when the customer will become bound by the offer and the implications of this;
    4. (d) the charges that a customer may incur under the plan, including the reason for, and amount of, each charge, when they are payable, whether they will be refunded and, if so, when;
    5. (e) a financial information statement;
    6. (f) the firm's contact details, including its name and address; and
    7. (g) how to complain to the firm and whether or not complaints may subsequently be referred to the Financial Ombudsman Service.
  2. (2) A firm may omit details of the charges that a customer may incur under a home purchase plan from the offer document if they are included in a separate tariff of charges provided to the customer at the same time.

MCOB 6.8.2

See Notes

handbook-guidance
Although an offer document may not match information given in a financial information statement before an offer is made, an offer document should be an accurate reflection of the actual costs of the home purchase plan.

MCOB 6.8.3

See Notes

handbook-guidance
A firm should bear in mind its obligations under Principle 6. For example, if a firm knows that its interest in a home purchase plan will be assigned and the firm will no longer be responsible for setting rental payments and charges, the offer document should state this fact and who will become responsible after the assignment (if this is not known at the offer stage the customer should be notified as soon as it becomes known).

MCOB 6.8.4

See Notes

handbook-rule
A firm must ensure that the financial information statement forms the main, and an integral, part of the offer document.

Distance contracts with retail customers

MCOB 6.8.5

See Notes

handbook-rule
  1. (1) A firm must communicate to a consumer the distance marketing information in a durable medium available and accessible to the consumer in good time before the consumer is bound by any distance contract or offer to enter into a home purchase plan.
  2. (2) If the distance contract or offer has been concluded at the consumer's request using a means of distance communication which does not enable providing the information in accordance with (1) then it must be communicated no later than immediately after the conclusion of the home purchase plan.

[Note: article 5 Distance Marketing Directive]

MCOB 6.8.6

See Notes

handbook-guidance
Distance contract information may be included in an offer document provided that it does not significantly increase its length.

MCOB 6.9

Regulated sale and rent back agreements

Process for concluding regulated sale and rent back agreements

MCOB 6.9.1

See Notes

handbook-rule
A SRB agreement provider must not enter into a regulated sale and rent back agreement unless it follows the process outlined in this section.

Valuation of the property

MCOB 6.9.2

See Notes

handbook-rule
  1. (1) A SRB agreement provider intending to enter into a specific regulated sale and rent back agreement with a SRB agreement seller and before it complies with the other requirements in this section, must ensure that the property is properly valued by a valuer:
    1. (a) that meets the competence and independence requirements (see MCOB 2.6A.12 R, MCOB 2.6A.12A R and MCOB 2.6A.13 E); and
    2. (b) using the definition of "market value" set out in the Valuation Standard of the Royal Institution of Chartered Surveyors from time to time.
  2. (2) Where the SRB agreement provider has applied to a mortgage lender for financing for a proposed regulated sale and rent back agreement and the relevant lender in accordance with its standard lending practices requires its own valuation of the property to be carried out, the valuation will only satisfy the requirements of (1) if the property is properly valued by a valuer that meets the competence and independence requirements (see MCOB 2.6A.12 R and MCOB 2.6A.13 E).
  3. (3) The firm must ensure that a copy of the valuation report accompanies the written pre-offer document at Stage One (see MCOB 6.9.3 R).
  4. (4) This rule does not apply if the SRB agreement seller has already obtained his own recent valuation of the property from a valuer that meets the competence and independence requirements (see MCOB 2.6A.12 R and MCOB 2.6A.13 E).

Written pre-offer document: Stage One

MCOB 6.9.3

See Notes

handbook-rule
  1. (1) As soon as a SRB agreement provider agrees the key terms of a proposed regulated sale and rent back agreement with a SRB agreement seller and before he becomes contractually committed to enter into the agreement, the SRB agreement provider must provide the seller with a written pre-offer document summarising its key terms (Stage One).
  2. (2) The written pre-offer document must be in the form prescribed by MCOB 6 Annex 2 R and must be adapted by the firm, as appropriate, to the extent specified.
  3. (3) The written pre-offer document must be accompanied by the FSA consumer factsheet on sale and rent back (even if the firm has already provided this) which the firm must provide to the customer in a durable medium and which may be accessed through www.fsa.gov.uk.
  4. (4) On providing the FSA consumer factsheet to the SRB agreement seller, the firm must give him an oral explanation of what it contains, so as to ensure that he understands its contents, unless the firm has already done so.
  5. (5) The firm must ensure that the written pre-offer document is accompanied by all associated legal documents in draft form that the seller will need to sign at Stage Two (MCOB 6.9.10 R) to give effect to the proposed regulated sale and rent back agreement.

Cooling-off: No contact between SRB agreement provider and SRB agreement seller

MCOB 6.9.4

See Notes

handbook-rule
The SRB agreement provider must not instigate any contact or otherwise seek to communicate with the SRB agreement seller or a member of his family for a period of 14 days from the time that he has been supplied with the written pre-offer document at Stage One, together with the associated legal documentation in draft form.

MCOB 6.9.5

See Notes

handbook-rule
If the SRB agreement seller or a member of his family makes contact with the SRB agreement provider during the 14 day cooling-off period, for example because he wants to query a term of the written pre-offer document, the provider must endeavour to answer the query in as factual a manner as the circumstances permit but avoid any language or conduct which could be interpreted as amounting to an attempt to exert pressure on the SRB agreement seller to enter into the proposed agreement.

Exercise of cooling-off rights: costs and expenses

MCOB 6.9.6

See Notes

handbook-rule
The SRB agreement provider must not charge or seek to charge a potential SRB agreement seller for any fee, cost, or expense unless and until the seller has entered into the regulated sale and rent back agreement following the 14 day cooling-off period.

Responsibility of SRB agreement provider during cooling-off period

MCOB 6.9.7

See Notes

handbook-rule
The SRB agreement provider must not offer to or enter into a regulated sale and rent back agreement with the seller until the 14 day cooling off period has elapsed and must not allow the seller to become contractually committed to enter into any such agreement by signing any associated legal documentation to give effect to it within that period.

Requirement to notify the mortgage lender or home purchase provider where the seller is in arrears

MCOB 6.9.8

See Notes

handbook-rule

As soon as a SRB agreement provider has provided the written pre-offer document at Stage One to a SRB agreement seller who is in arrears under his regulated mortgage contract or home purchase plan on the property to which the proposed regulated sale and rent back agreement relates, it must, in a durable medium, immediately notify the mortgage lender, home purchase provider or the providers of other loans that may be secured on the property:

  1. (1) explaining that the firm is proposing to enter into a regulated sale and rent back agreement with the seller and that, as required by the FSA, he will be given a cooling-off period of 14 days before deciding whether he wishes to enter into the proposed agreement;
  2. (2) summarising the key terms of the proposed agreement;
  3. (3) advising the lender or provider that the proposed agreement is likely to be relevant to any repossession action or other forbearance option the lender or provider may already be, or may be contemplating, taking with respect to the property; and
  4. (4) giving the firm's contact details should the lender or provider wish for any further information.

Data protection

MCOB 6.9.9

See Notes

handbook-guidance
Firms will need to consider the implications of the Data Protection Act 1998 under which personal data that a firm, as data controller, holds about its customer cannot be disclosed to a third party without his consent. In practice the firm is likely to need the SRB agreement seller's consent to disclosing the matters covered by MCOB 6.9.8 R to the relevant mortgage lender or home purchase provider.

Written offer document for signing: Stage Two

MCOB 6.9.10

See Notes

handbook-rule
  1. (1) No sooner than 14 days after the SRB agreement provider has supplied the SRB agreement seller with the written pre-offer at Stage One, the provider must provide him with a written offer document for signing (Stage Two), accompanied by any formal legal documentation that the parties will need to sign to give effect to the proposed regulated sale and rent back agreement.
  2. (2) The written offer document for signing (Stage Two) must be in the form prescribed by MCOB 6 Annex 3 R and must be adapted by the firm, as appropriate, to the extent specified.

Records of written pre-offer documents and written offer documents for signing

MCOB 6.9.11

See Notes

handbook-rule

The SRB agreement provider must keep a record of the written pre-offer document at Stage One and the written offer document for signing at Stage Two for a period of:

  1. (1) one year after the end of the fixed term of the tenancy under the regulated sale and rent back agreement; or
  2. (2) five years from the date of the disclosures and warnings, written offer documents and cooling-off period notices;
whichever is the longer.

MCOB 6 Annex 1

Distance home purchase plans: information to be provided to retail customers.

[Note: articles 3 and 5 Distance Marketing Directive ]

MCOB 6 Annex 2

- Written Pre-offer Document of a regulated sale and rent back agreement.

MCOB 6 Annex 3

- Cooling-Off Document of a regulated sale and rent back agreement.