PART 3: MORTGAGE INTERMEDIARIES
ONLY
(11) DISCLOSURE
OF STATUS
Appointed agent status
(11.1)
At the outset, we will
tell you if we are the
appointed agent of a lender
for mortgage business
and therefore act on their
behalf, in which case
they are responsible for
our actions and advice.
Alternatively, at the
outset, we will tell you
that we act on your behalf.
Access to the market
(11.2)
We will explain whether
we usually arrange mortgages
from a selection of preferred
lenders, based on our
research of the market,
or from the market as
a whole. If a selection
of lenders is used, we
will give you details.
(12) FEES AND
CHARGES
Disclosure of fees
(12.1)
At the outset, we will
tell you if we will receive
a fee for arranging your
mortgage. Before you take
out a mortgage, we will
tell you the amount of
the fee in writing. If
the fee is less than £250,
we will confirm that we
will receive up to this
amount. If the fee is
£250 or more, we will
tell you the exact amount.
Other services
(12.2)
We will tell you the charges
for any other service
or product before or when
it is provided or at any
time you ask.
(13) TERMS AND
CONDITIONS
(13.1)
All written terms and
conditions will be fair
in substance and will
set out your rights and
responsibilities clearly
and in plain language,
with legal and technical
language used only where
necessary.
(14) CONFIDENTIALITY
Duty of privacy
(14.1)
We will treat all your
personal information as
private and confidential
(even when you are no
longer a customer), except
where disclosure is made
at your request or with
your consent in relation
to arranging your mortgage.
Data protection access
(14.2)
We will explain that you
have a right of access
under the Data Protection
Act 1998 to your personal
records held on our files.
(15) COMPLAINTS
Internal complaints
procedure
(15.1)
We have internal procedures
for handling complaints
fairly and speedily and
we will tell you what
these are. These will
include establishing a
set time for an initial
acknowledgement to your
complaint. We will tell
you how long it might
take us to respond more
fully.
Making complaints
(15.2)
If you wish to make a
complaint, we will tell
you how to do so and what
to do if you are not happy
about the outcome. We
will help you with any
queries.
Arbitration
(15.3)
Where applicable, we will
display a notice in a
prominent position in
all our branches stating
that we belong to the
Mortgage Code Arbitration
Scheme and that copies
of the Code are available
on request. The arbitrators
are available to resolve
certain complaints made
by you if the matter remains
unresolved through our
internal complaints procedure.
The address of the Scheme
is:
The Mortgage
Code Arbitration Scheme
International
Arbitration Centre
12 Bloomsbury Square
London
WClA2LP
Tel: 020 7421 7444
(16) MONITORING
AND COMPLIANCE
Compliance officer
and internal audit
(16.1)
We have a 'Code compliance
officer' and our internal
auditing procedures will
include monitoring compliance
with the Code.
Mortgage Code Compliance
Board
(16.2)
The Code is monitored
by the Mortgage Code Compliance
Board, which is an independent
non profit-making company
funded by registered firms.
Its Board comprises representatives
of lenders and intermediaries,
together with a majority
of public interest members.The
address is:
The Mortgage
Code Compliance Board
University Court
Stafford
ST180GN
Tel: 01785 218200
Complaints concerning
the general operation
of the Code can be made
to them. The Mortgage
Code Compliance Board
also keeps a list of mortgage
intermediaries, which
have undertaken to comply
with the Code.
PART 4 HELP
SECTION
What Loans does this
Code Apply to?
This Code applies to
all loans (not overdrafts)
secured on the home which
you, as a personal customer,
own and occupy, unless
the loan is governed by
the Consumer Credit Act
1974 (when the provisions
and protections of that
Act apply to your loan).
The Code does not apply
to the selling of investments,
which are covered by the
Financial Services Act
1986.
Sponsoring Association
Enquiries about the
Code and requests for
copies of it can be addressed
to the Council of Mortgage
Lenders or the Mortgage
Code Compliance Board,
whose addresses and telephone
numbers are shown inside
the front cover of this
booklet.
Copies of the Code
All subscribers to the
Code will make copies
of it available to customers.
Copies of the Code of
Banking Practice are available
from the;
British Bankers' Association,
Pinners Hall,
105-108 Old Broad Street,
London
EC2N 1EX,
Tel: 020 7216 8800.
Additional Information
Additional information
on a variety of mortgage
matters is available in
the form of 'Fact sheets'
available from The Council
of Mortgage Lenders. In
addition the CML operates
a recorded customer information
line, the number of which
appears inside the front
cover of this booklet.
Useful Definitions
These definitions
explain the meaning of
words and terms used in
the Code. They are not
precise legal or technical
definitions.
Credit Reference Agencies
Organisations, licensed
under the Consumer Credit
Act 1974, which hold information
about individuals, which
is of relevance to lenders.
Lenders may refer to these
agencies to assist with
various decisions, e.g.
whether or not to provide
a loan. Lenders may give
information to or seek
information from these
agencies.
Credit Scoring
This is a system, which
lenders use to assist
in making decisions about
granting consumer credit.
Credit scoring uses statistical
techniques to measure
the likelihood that an
application for credit
will be a good credit
risk.
Guarantee
An undertaking given by
a person called the guarantor
promising to pay the debts
of another if that other
person fails to do so.
Mortgage Intermediary
An individual, firm or
organisation, which helps
customers to choose a
mortgage and introduces
mortgage applications
to lenders. Mortgage intermediaries
include, for example,
estate agents, mortgage
brokers, independent financial
advisers, solicitors,
accountants and life assurance
companies.
Personal Customer
A private individual who
maintains an account (including
a joint account with another
private individual, but
excluding the accounts
of sole traders, partnerships,
companies, clubs and societies)
or who receives other
services from a lender.
Security
A word used to describe
items of value such as
title deeds to houses,
share certificates, life
policies etc which represent
assets used as support
for a loan. Under a secured
loan the lender has the
right to sell the security
if the loan is not repaid.
Tariff
A list of charges for
services provided by a
lender.
Council of Mortgage
Lenders
3 Savile Row
London
W1S3PB
Recorded Consumer Information
Line Telephone: 020 7440
2255
Fax: 020 7434 3791
Website: www.cml.org.uk
Mortgage Code
Compliance Board
University Court
Stafford
ST180GN
Tel: 01785 218 200
The Mortgage
Code
Second Edition: April
1998; Reprinted April
2001
Published by the Council
of Mortgage Lenders
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