Mortgage guide

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This is a voluntary Code of Practice followed by lenders and mortgage intermediaries in their relations with personal customers in the United Kingdom. It sets standards of good mortgage lending practice which are followed as a minimum by those subscribing to it.

As a voluntary Code, it allows competition and market forces to operate to encourage higher standards for the benefit of customers.

The standards of the Code are encompassed in the 10 key commitments found at the beginning. These commitments apply to the conduct of business for all mortgage products and services provided to customers by lenders and mortgage intermediaries.

Banking practice is covered in more detail in the Banking Code issued by the British Bankers' Association, The Building Societies Association and the Association for Payment Clearing Services. Not all lenders subscribing to the Code of Mortgage Lending Practice are members of the BBA, BSA and APACS.

The Code provides valuable safeguards for customers. It should help them understand how lenders and mortgage intermediaries are expected to deal with them. Customers should check which lenders subscribe to it by contacting the Council of Mortgage Lenders, and for mortgage intermediaries they should contact the Mortgage Code Register of Intermediaries. Addresses for both of these organisations are shown on the title page of this booklet.

An Independent Review Body for the Banking and Mortgage Codes monitors compliance by lenders with the Code and also oversees its review from time to time. Responsibility for mortgage intermediaries has been delegated by the Independent Review Body to the Mortgage Code Register of Intermediaries.

Within the Code, "you" means the customer and "we" means:
In Part 1 (Sections 1 - 3) - both lenders and mortgage intermediaries
In Part 2 (Sections 4 - 10) - lenders only
In Part 3 (Sections 11 - 16) - mortgage intermediaries only