Mortgage
UK: The Mortgage Code
(Please note that the FSA now regulates the mortgage industry,
and the MCCB is no longer active.)
The Mortgage Code Compliance Board job is to make sure
that you are fully informed and adequately protected when
taking out a mortgage.
All lenders and intermediaries registered with the Board keep to
the guidelines and standards set out in the Mortgage Code.
The Board ensure compliance through a ongoing programme of inspection
and compliance liaison visits. In addition, 'mystery shopping' and
consumer research exercises are regularly conducted to ensure that
consumers are receiving the full benefits of the Code's protection.
It is rare but should a problem arise the Board will conduct a
detailed investigation.
The Mortgage Board is a non-statutory regulator. Its role is to
regulate the supply and provision of mortgage advice in the UK by
ensuring firms registered under the Mortgage Code, meet all the
standards of the Code. Mortage.uk.com (The More Group) is a fully
signed up member.
The Financial Services Authority regulates financial institutions
and lenders. It also regulates the advertising of UK mortgages under
the Financial Services and Markets Act.
On 12 December 2001 the Government announced that mortgage advice
and the intermediary sector in general would also be brought under
the statutory regime at a future date. In the interim period, which
may be more than two years, the Mortgage Board will continue to
ensure that the Code and our rules provide effective protection
for consumers.
The DTI (Department of Trade and Industry) had created a checklist
of key questions that it is suggested customers should ask when
taking out a mortgage. This is based on information from research
conducted on issues that have caused problems for customers. It
is included as additional information that may be useful to you
when choosing a mortgage, and to help you avoid potential problems.
- How much can I afford
to borrow?
- How can I tell which
mortgage rate is best for me?
- What is the best type
of mortgage for me?
- How should I repay
it?
- Can I make lump sum
payments to reduce the size of the loan?
- Are there any redemption
penalties?
- Does this mortgage
come with compulsory insurance?
- What other charges
will I have to pay? - Examples may include lenders' application
fees and intermediary's arrangement fees. The Mortgage Board's
experience highlights the importance of having a full knowledge
of all costs involved.
- What happens if I
can't pay?
- What about the small
print?
In addition it is recommend that you are aware of the basis on
which interest is calculated on your mortgage.
For more information visit The
Mortgage Code website.
When you complete the simple Mortgage UK online application form
an expert will contact you. This fully qualified professional advisor
will be able to ask any questions you may have.
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