Reverse Mortgage Terms and ConditionsConditions for the reversal of mortgages
Anticipated mortgage agreements PERG 4.6 Advice on mortgage agreements
The FCA considers that one of the conditions under which a taxpayer advises a debtor is to diversify the terms of a mortgage agreement in order to diversify his contractual commitments, including when it comes to: the debtor changing from a mortgage for redemption to a pure mortgage, or the opposite scenario.
Even though advising on amending the terms of a mortgage agreement is not a regulatory business if the agreement was concluded before 31 October 2004, unless the agreement is a CCA mortgage agreement,6 there may be cases where the amendment of the old agreement is so basic that it equals the conclusion of a new mortgage agreement (see PERG 4.4. 4 G).
Consultation in this case would be a regulatory business. Suggestions falling under Art. 53A as described in PERG 4.6. It must: refer to a specific mortgage agreement (i.e. one that the debtor can conclude or, in the case of an amendment, one that he has already concluded); be given to a natural or legal entity in its role as debtor or prospective debtor; refer to the earnings of the debtor concluding the agreement or amending the terms of the agreement.
PERG 5 Clause 4.6 (Advice must refer to a specific mortgage contract) according to PERG 4.6. Section 17 C ( The consultation must refer to the situation (borrowing as a debtor or different borrowing)). In addition, it should be noted that a single individual may engage in regulatory activity which may or may not include brokering whether that individual is an advisor on regulatory mortgage agreements (see PERG 4. 5); PERG 8. 25 ((advice must refer to an installation which is a securities or contractual investment) to PERG 8.
28 (The consultation must refer to the benefits (purchase or sale of a particular investment)) is pertinent to any individual who, at the same moment as providing consultation on regulatory mortgage agreements, also provides consultation on other types of investments; this may include, for example, a individual who provides consultation on the benefits of using a particular life insurance or ISA as a means of returning principal from a pure mortgage.
Six G. Regulated or not? ABC Building Society 2 years at 5%. It is a piece of guidance that guides the borrowers towards a specific mortgage that the borrowers could take. My recommendation to you is not to take out the ABC Building Society 2 year mortgage at 5% interest rates.
It is an advisory measure that discourages the debtor from taking out a specific mortgage that the debtor could have taken out. Recommended is either the ABC Building Society 2 year 5% flat mortgage or the XYZ Bank Floating Interest Mortgage. It is a piece of guidance that guides the borrowers towards more than one specific mortgage that the borrowers could take.
ABC Building Society recommends that you take out (or not take out) a fixed-rate mortgage. My suggestion is that you take out (or not take out) a mortgage with the ABC Building Society. My suggestion is that you modify (or not modify) your existing mortgage from a floating interest that is a floating interest that is a floating interest that is a floating one.
Negative in terms of advising on the interest method, as this does not direct the borrowers towards a particular mortgage that the borrowers could take out. Indeed, with regard to advising on changing the terms of the mortgage that the debtor had already taken out.
My suggestion is that you take out (or do not take out) a mortgage at a floating interest rat. No, this is not a piece of guidance that guides the borrowers towards a particular mortgage that the borrowers could take. My recommendation to you is to take out (or not to take out) a mortgage. No, this is not a piece of guidance that guides the borrowers towards a particular mortgage that the borrowers could take.
It would always be advisable to buy a home and take out a mortgage instead of leasing a flat. No, this is an example of general counseling that does not direct the borrowers toward a particular mortgage that they could take. This is an example of general counseling.
When you are looking for flexibilty with your mortgage, I would suggest you exploring the options of either a flex mortgage or an offset mortgage. This is an example of general counseling. General guidance is given in PERG 4.6 for example. G. In the FCA's opinion, the guidance of a human being through script issues or a decisions-tree should not in itself include guidance within the sense of Art. 53A (it should be general guidance).
The FCA believes that the combined effect of counselling, which in isolated terms can be regarded as being generic, with the identifying of one or more specific mortgage agreements that have been subject to regulation, can lead to the individual being advised on mortgage agreements that have been subject to regulation; the FCA believes that it is necessary to look at the whole picture of the whole procedure; this will be further explored in the connection with the script survey in PERG 4.6.
Consultation for the purpose of Art. 53A must be given to someone who acts as a creditor or prospective creditor. Advisory services to a corporation are generally not covered, as the advisory service is not a regulatory mortgage agreement within the meaning of the definition. For example, Art. 53A does not preclude the application when advising individuals who obtain them as: representatives of a creditor, unless they are designated as representatives of the creditor and therefore enter into the mortgage agreement as representatives (or agents) for the creditor.
Consultation remains subject to the provisions of Art. 58A even if it is not addressed to a specific creditor (e.g. consultation in a magazine or on a website). The FCA considers that the advisory process involves an expression of views on the part of the advisor, who must direct or direct a borrowing or prospective borrowing towards one or more specific mortgage(s).
Generally, it is not advisable to provide simple balance and neutrality information without commenting or evaluating the appropriateness of a borrower's decision. Often, information on the conclusion of mortgage agreements can relate to one or more of the following: explaining the terms of a regulatory mortgage agreement, whether verbally or in written form or by making available flyers and booklets; comparing the terms and advantages of a regulatory mortgage agreement with another; scripting issues for the borrowers to rule out any option that would not suit their needs; such issues may often lead to the identification of a set of regulatory mortgage agreements with terms that appear to suit the borrower's needs and to which the borrowers may wish to be subject to in-depth scrutiny (the scripting issue is discussed in more detail in PERG 4).
Article 25B ('25G' script survey (including decisions trees)); spreadsheets comparing interest rate and other characteristics of different mortgage types; fact sheets or graphs to help lenders determine which mortgage to take; the determination, at the application of a lender who has personally determined the principal characteristics of the mortgage types he is seeking, of several fact sheets together with an indication that all the mortgage agreements described in them have these characteristics.
However, in the view of the FCA, such information should take on the character of a consultation if the conditions under which it is given justify a PERG 4.6 compliant recommendations. G. The following are examples of instances where the information provided by a single individual ('P') is likely to take the shape of counsel.
It provides information on a chosen, unbalanced and impartial base that tends to affect the borrower's choice. That may be the case where Pe provides information on a mortgage that contains characteristics specified by the borrowers but then uses judgment as to which mortgage should be offered to the borrowers.
At the end of the sale procedure, Mr. L. P discussed the advantages of a mortgage agreement with a mortgage company over another one, which led to the recommendation to conclude or not to conclude a certain agreement. An impartial and equitable statement of the effects of a mortgage agreement, e.g. the exercise of certain remedies or the late payment of interest, does not itself have to include consultation on the benefits of concluding the agreement or changing its terms.
Nor does advising on the advantages of using a particular mortgage agent or consultant in his capacity as such constitute advising within the sense of Art. 53A. This is not a consultation on the benefits of concluding or changing the terms of a mortgage agreement. In the absence of express or implied consultation on the benefits of borrowing or changing the terms of a regulatory mortgage agreement, the consultation does not come under Art. 53A if it concerns consultation on the likely significance of unsafe terms in a regulatory mortgage agreement or on the completion of an enrolment request document.
Script survey includes the use of any kind of sequence question to retrieve information from a subject to facilitate the choice by that subject of a mortgage or other mortgage products that meet their needs. The execution of the script survey procedure raises specific consulting concerns.
Essentially, these concern two elements of this regulatory business. The consultation must refer to a specific mortgage agreement (see PERG 4.6. 5 G) and the differentiation between information and consultation (see PERG 4.6. 13 G). The advisability of a written survey on mortgage agreements depends on all factors.
The FCA considers that, if the procedure is to identify one or more specific mortgage agreements which are subject to regulation, the decisive element in avoiding advice on mortgage agreements which are subject to regulation is likely to be whether the procedure is restricted to the borrowers and is seen as such by the borrowers by helping them to make their own choices of products which have specific characteristics which the borrowers consider important.
Issuers must refrain from giving an opinion on the appropriateness of one or more product (s) for the borrowers. Firstly, it consists of asking and answering specific simple general question (e.g. whether a debtor wants to repay a set or floating interest or what the available amount of the investment is).
The FCA does not consider this to be advisory on regulatory mortgage agreements as it is the supply of information rather than advisory; the researcher can easily spot several regulatory mortgage agreements that correspond to the characteristics that have been revealed by the scriptured survey; provided that they are presented in a fair and impartial manner (e.g. they spot all identical regulatory mortgage agreements without making a specific recommendation), this does not have to include self-advice on regulatory mortgage agreements; the researcher can easily include the borrowers in the consultation on regulatory mortgage agreements; the researcher can then provide information on the mortgage agreements and not advisory services;
Before or during the written survey, the interviewer can make a suggestion or statement that affects the selection of the mortgage agreement and, after the written survey, identifies one or more specific mortgage agreements; the decisive factor then is whether the suggestion can refer to a specific mortgage agreement (see also PERG 4.
Second, the script-driven survey is to provide question and answer that contain opinions, judgments or suggestions (e.g. whether a redemption or pure interest mortgage is a better choice or whether interest is likely to rise). The script survey can identify one or more specific mortgage agreements; the crucial question then is whether the consultation can refer to a specific mortgage agreement (see also PERG 4.6. 22 G).
The advisory component included in the interview may be duly regarded as general guidance when seen in its own right. However, although the real consultation may be generic, the lifecycle has ended with the discovery of one or more specific mortgage agreements. In the FCA's opinion, the combined effect of providing general guidance and identify one or more specific mortgage agreements that are subject to regulation can lead to the issuer providing guidance on them.
Decisive issues that may be of relevance in determining whether the litigation includes advice on regulatory mortgage agreements may include: whether the written question and answer have been provided by an unrelated third person (e.g. the FCA) and are clearly responsible, and all the interviewer has done is help the borrowers help themselves to understanding what the question or answer is and how they can decide which is the appropriate policy for their particular circumstance.
Paragraph 30A ( exclusion: periodic publication, programmes and websites)) The advisory media should not make a significant distinction between whether or not the advisory is covered by Art. 53A. Counselling can be provided in a variety of ways, e.g. personally, verbally for a group, by phone, in writing (including e-mail), by providing an interacting soft ware system.
Consulting for publication, broadcasting and website is governed by a specific regulation - see PERG 4.6. Thirty-three G. Regulated or not? Brochures that only describe the terms and conditions of a lender's product are not a recommendation (see PERG 4.6. Although the prospectus contains advertising materials, the mere fact that the prospectus is handed over does not mean that the company gives advise.
Determining which one has the cheapest rate is not independent consulting, just facts. 6. A creditor with only one mortgage shall advise a client to take out that mortgage. Creditors make it clear that they do not give advisory services on anything other than their own creditors. Creditors can claim that this is not regulatory guidance because they do not recommend one type of credit for another because they only have one type of credit themselves and do not give guidance on other creditors' credit.
The FCA considers, however, that this is still a matter of regular consultation. In order for advisory services to be regulable, it must be advisory on the benefits of concluding a particular regulable mortgage agreement (or a different one). You can give us tips on the benefits of a particular item without having to compare it with another.