The FCA has published a document setting out a pre-contractual buyer’s illustration examples.
The illustration examples are for applicants seeking waivers or modifications of requirements under the Consumer Credit (Agreements) Regulations 1983 for agreements secured on land, typically shared equity mortgage agreements.
The FCA’s document sets out examples of illustrations that it expects to see lenders follow. If a lender decide to use an alternative illustration, it should be prepared to provide an explanation as to why their format is better for consumers. The FCA only expects the format of the illustrations to be followed, not the figures which should be adapted as necessary in accordance with the terms of the agreement.
View Pre-contract buyer’s illustration, 27 March 2015