MCOB

[Colloff]

Hi everyone, I am a new member to your forum and looking for some advice regarding the introduction of MCOB on 31 October 2004.

We purchased a property that incorporates a shop and living accommodation. The living accommodation is over 40% of the property and as far as we understand, this means it is a Regulated Mortgage.

We were offered a business loan for the purchase of the property. The loan was completed at the end of November 2004, after the 31 October 2004 deadline. At no point during the purchase process did the bank may us aware of the impending MCOB regulations.

The regulation has only been brought to our attention following attempts to renegotiate a new loan to replace the existing one, up until then we were totally unaware that the regulation existed.

Based on this, do you feel that we have a case against the bank?

Thanks for your help.

[Tools]

Re: MCOB

Hi colloff, I already started a thread for assistance here MCOB query from Colloff

Please use that thread for replies

[Colloff]

Re: MCOB

Hi Wolf

Sorry about this, misunderstood how your site works.

Reagrds

Colloff

[Judge mental]

Re: MCOB

Hi Colloff.

You are correct in saying that finance to purchase a property consisting of more than 40% living accommodation is a regulated morgage and subject to the MCOB, even if it is a business loan.

My understanding of your question is that the Bank did not make you aware of the regulations prior to making an agreement and you want to know if you have any redress.

The agreement is subject to all the disclosure rules and prescribed terms and providing all these were present the lender has fulfilled all their obligations. The lender must state they are 'regulated by the Financial Services Authority' but as far as I am aware there is no specific requirement to mention MCOB.

[Colloff]

Re: MCOB

Hi Judge mental

Thank you for your reply. In your last paragraph, are you saying that within the loan agreement it should state somewhere 'regulated by the Financial Services Authority' ?

Thanks

[Amethyst]

Re: MCOB

Just a bump as i don't know the answer thanks peeps.