Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Mortgage definition

What does Mortgage mean? In practice, a mortgage is the security taken by a lender over land (and fixtures) to secure repayment of a loan or other obligations. It gives the mortgagee proprietary rights in the borrower’s property, affecting priority, registration and enforcement. The term is used descriptively across property, banking and insolvency law and is shaped by statute and case law. England & Wales and Northern Ireland: a mortgage over registered land is usually a legal charge created by deed with the statutory effect of a mortgage (for example, under the Law of Property Act 1925 and NI equivalents). Equitable mortgages can arise,...

UK FCA MCOB advising, execution‑only and disclosure standards for home finance (mortgages, HPPs, HRPs, SRBAs), including ESIS/KFI requirements and APR/APRC calculations

Published by a LexisNexis Financial Services expert

Practice notes

This Practice Note explores the Financial Conduct Authority (FCA’s) Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) obligations on Distribution and Disclosure that apply to lenders, providers and intermediaries involved with regulated mortgage contracts (RMCs), home reversion plans (HRPs), home purchase plans (HPPs) and regulated sale and rent back agreements (SRBAs). Collectively, RMCs, HRPs, HPPs and SRBAs are termed home finance transactions (MCOB 1.2.2 G(1)). The relevant provisions sit mainly in MCOB chapters 4–9 (MCOB 4–MCOB 9). This Practice Note also explains the rules for accurately computing the annual percentage rate (APR) and the annual percentage rate charge (APRC) in chapters 10 and 10A of MCOB (MCOB 10 and MCOB 10A). For guidance on other elements of MCOB, see Practice Notes: Mortgage and home finance conduct of business—application and general Requirements; Mortgage and home finance conduct of business—financial promotion regime; and Mortgage and home finance conduct of business—responsible lending, charges and arrears requirements.

Purpose of MCOB advising and selling standards

MCOB 4 sets out rules and guidance that support Principle 6 (Customer’s interests), Principle 7 (Communications with clients) and Principle 9 (Customers: relationships of trust) within the FCA’s Principles for Businesses (PRIN)...

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Web page updated on 22/05/2026

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