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MCOB Rules for Further Advances

MCOB Rules for Further Advances MCOB Rules in Relation to Further Advances Further advance rules are covered under MCOB 7, 7A and 7B. Lenders must supply information that meets the pre-application disclosure in MCOB 5 and 7.6 before the client submits their further...

Information Required by Lenders

Information Required by Lenders What Information Does the Lender Need for a Further Advance? Lenders will need to gather information in order to consider a further advance. Information gathering is the first stage and there are two aspects: 1. Ability to repay –...

Further Advances

Further Advances Further Advances A further advance is when a homeowner takes on more borrowing from their current mortgage lender. It is essentially a top-up over the remaining term of the existing loan.  1. A further advance is usually the most cost-effective way to...

Home Reversion Schemes

Home Reversion Schemes Home Reversion Schemes A home reversion plan is where part or all of a property is sold to a provider. The provider pays a lump sum/income or both in return. How it works: 1. The provider purchases the property (either part or whole) from the...

Lifetime Mortgages

Lifetime Mortgages FCA Definition of a Regulated Lifetime Mortgage A lifetime mortgage is aimed at older homeowners who have assets but not income. The mortgage is designed to release equity from the property. The majority of people that apply for a lifetime mortgage...

Equity Release

What is equity release? What is equity release? Equity release was previously discussed and it is designed to allow homeowners that do not have a mortgage on their property to release equity to provide capital or supplement their retirement income.  1. Most schemes...

Right to Acquire

What is right to acquire? What is right to acquire? Right to acquire is similar to the right to buy scheme however it has a few key differences: 1. The tenant may ‘acquire’ (buy) the housing association property after 3 years of tenancy; 2. The discounts...

What is right to buy?

What is right to buy? What is right to buy? 1. Right to buy allows tenants of social landlords in England and Northern Ireland (the House Sales Scheme) the right to purchase the property they are renting; 2. The tenant must have a secure tenancy from a local...

Government Schemes Scotland

Government Schemes Scotland Schemes in Scotland There are several schemes in Scotland that are offered through partnerships between the Scottish government, social landlords, participating developers and lenders. The way the schemes work are different compared to...

Government Schemes

Government Schemes What government schemes are available to help people purchase a property? Property prices in England have been soaring and many people find it extremely difficult to get on the property ladder. The government has several initiatives to help people...

Equity Share

Equity Share Equity Share 1. The equity share scheme is another scheme designed to help first-time buyers who cannot afford to purchase a property on their own; 2. The borrower is the legal owner, pays a deposit and arranges a conventional first-charge mortgage on the...

Shared Ownership

Shared Ownership What is shared ownership? 1. Shared ownership is essentially a scheme that is set up with the cooperation of housing associations, local authorities and mortgage lenders. 2. It’s important to remember that shared ownership is not a mortgage...

Recommendations

Recommendations Recommendations Advisers should be able to create a package of suitable recommendations that are flexible enough to deal with any potential future changes. Waiver of Premium (WoP) should also be recommended if the client is eligible and it’s...

Identifying Suitable Products

Identifying Suitable Products Identifying Suitable Products Customers needs will depend on their circumstances and each customer will have different needs. Some customers may have large cash reserves, pensions, state benefit entitlement and these factors will affect...

Pre and Post-Contract Disclosure

Pre and Post-Contract Disclosure Introduction Disclosure of facts is essential to all parties entering into an insurance contract. This section will focus on the various aspects of pre and post-contract disclosure.  Disclosure Requirements The Consumer Insurance...

Providing Advice

Providing Advice Providing Advice Providing advice to customers is an essential service for customers considering financial protection. The advice provided helps customers understand their protections needs and which product(s) meet these needs. The rules for...

Other forms of protection

Other forms of protection Accident, sickness and unemployment insurance (ASU) ASU is a type of insurance designed to provide a regular income benefit if the insured person is unable to work due to an accident, illness or becomes unemployed due to redundancy. Key...

Contents Insurance

Contents Insurance Contents Insurance Contents insurance covers the policyholders home contents, personal items, money and household fittings and furniture in the event of a covered peril/event. 1. Lenders usually do not insist on the policyholder having a contents...

Home Insurance

Home Insurance Home Insurance Home insurance is vital to ensure a building and its contents are adequately protected should the worst happen. There are several types/variations to home insurance that will be discussed in this lesson. Buildings Insurance Building...

Employee Protection

Employee Protection What is employee protection? Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension scheme and contribute towards it. This is called ‘automatic enrolment’. In addition to this, smaller...
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