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Principles of Ethical Advice

Principles of Ethical Advice Principles of Ethical Advice The mortgage adviser has a great deal of responsibility, as their advice will result in the client taking on a long‑term commitment, and due to this, it’s imperative that the customer receives ethical...

The Role of the Mortgage Adviser

The Role of the Mortgage Adviser Introduction This topic will focus on the role of the mortgage adviser and how mortgage advisers should provide ethical advice.  The Role of the Mortgage Adviser The mortgage market can be very confusing for the average buyer and this...

What Is Responsible Lending?

What Is Responsible Lending? What is responsible lending? Lenders are required to meet MCOB 11 requirements which cover responsible lending. Before entering into a mortgage contract, or changing the terms of an existing contract that could affect affordability, the...

Providing Advice

Providing Advice (MCOB 4 and MCOB 4A) Providing Advice (MCOB 4 and MCOB 4A) A borrower seeking a regulated mortgage may • be given qualified advice; or • proceed on an execution-only basis. Advice must be given before a contract is arranged or the borrower enters into...

Range of Products

Range of Products Range of Products In relation to the range of products offered, a firm can offer three types of services to its customers. The service that is being provided must be clearly indicated on first contact. Important Notes: 1. ‘Unlimited’ does...

What is the Initial Disclosure

What is the Initial Disclosure What is Initial Disclosure – (MCOB 4 & 4A) The aim of the initial disclosure is to provide the borrower with information about the firm, its status and the limitations of the range of products that the firm offers. The initial...

Regulation and the Buying Process

Regulation and the Buying Process Key Regulatory Stages in the Application Process There are key stages in the application process where regulatory requirements must be met. The key stages are shown below and they will be discussed throughout this topic. Marketing of...

The Sale

The Sale Information about the Contents of the Sale The buyer’s solicitor confirms with the vendor exactly what is and is not included in the sale (such as fittings and temporary outbuildings like sheds). The vendor is also required to complete a ‘Property...

The Role of the Solicitor

The Role of the Solicitor The Role of the Solicitors Lenders will only consider a mortgage if a suitably qualified person carries out legal formalities. In most cases, a solicitor is appointed; however, many buyers now use a licensed conveyance to act for them. A...

Buying at Auction

Buying at Auction Buying at Auction So far, we’ve talked about buying through private treaty, but an increasingly popular way to buy property is at auction. Auctions can be a great place to find properties, and buyers can find a bargain. Auctions have become...

Introduction

Introduction Introduction This topic will outline the typical stages of the house buying process. The image below is an overview of the typical process, but it’s important to note that not all property purchases will follow it. Each stage of the buying process...

Title Guarantees

Title Guarantees What is a title guarantee? Title guarantees provide a level of comfort as to the robustness of the title being conveyed. A contract for the sale of a property will state whether the vendor is selling with: 1. Full Title Guarantee: 1.1. The vendor has...

Rights & Obligations

Rights & Obligations What rights and obligations are attached to land? Certain rights and obligations can affect the title of a property. These are known as: Easements Positive Covenants Restrictive Covenants Restrictive Covenants and Easements are said to “run...

Types of Joint Ownership

Types of Joint Ownership Joint Ownership The legal owners are those who are the registered proprietors of a registered property or those whose names are shown in the latest conveyance for unregistered property. They have the power to transfer legal ownership of the...

Property Law

Principles of Mortgage & Property Law Mortgage Law Over time mortgage law has evolved, generally to the benefit of borrowers. The changes in mortgage law arise from general law changes and also due to improved consumer protection. For example, borrowers were...

Legislation to Protect Property Buyers

Legislation to Protect Property Buyers Consumer Protection Regulations 2014 The legislation gives consumers certain rights and remedies where a firm is in breach of the regulations, and right to redress if they have been subject to misleading or aggressive practices...

Buy to Let and Second Mortgages

Buy-to-Let and Second Mortgages Buy-to-Let Mortgages The FCA definition of a BTL mortgage is the same as a regulated mortgage, but with the following exception: The property cannot be occupied as a dwelling by the borrower or a related person at any time and will be...

Home Reversion Plans

Home Reversion Plan Home Reversion Plans A home reversion plan is where part or all of a property is sold to a provider. The provider pays a lump sum in return. The lump-sum is significantly less than the market value of the property – typically only between 20 per...

Home Purchase Plans

Home Purchase Plan Home Purchase Plan A home purchase plan is an arrangement where: • A provider (e.g. lender) buys a qualifying interest in land; • an individual or trustee (the home buyer) is obliged to buy the interest from the provider during or at the end of a...

Retirement Interest-Only Mortgages

Retirement Interest-Only Mortgages Retirement Interest-Only Mortgages The FCA introduced a new category of an interest-only mortgage in March 2018 called retirement interest-only mortgages. The new category was introduced due to demand from borrowers unable to repay,...
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