Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
MCOB 5 requires lenders and advisers to provide a personalised mortgage illustration (ESIS format) before you are bound. It must show initial rate, reversion rate, total amount repayable, APR and all fees. Use the APR and total repayable to compare lenders -- not just the initial monthly payment.
What Must a Mortgage Illustration Contain Under MCOB 5?
Direct answer
What information must my mortgage illustration show under FCA rules?
Under MCOB 5 (handbook.fca.org.uk/handbook/MCOB/5/), your personalised mortgage illustration (ESIS) must show: initial interest rate and APR, initial monthly payment, reversion rate and payment after the deal period, total amount repayable and all fees. Provided before you are bound by the contract.
Request an illustration before applying
You are entitled to a personalised illustration from any lender or adviser before committing.
Check the initial and reversion rate payments
The illustration shows both the deal rate payment and the SVR payment. The SVR shows what you pay when the deal ends.
Compare the total amount repayable
Use this across illustrations to compare total cost over the full term.
Check all fees in the APR calculation
Product fees, arrangement fees and valuation fees are typically included.
Compare illustration against mortgage offer
Raise any material differences with the lender before exchanging contracts.
| ESIS section | What it shows | How to use it |
|---|---|---|
| APR | Annual Percentage Rate including fees | Best single comparison metric |
| Initial monthly payment | Payment during deal period | Shows affordability now |
| Reversion rate payment | Payment when deal ends | Shows cost if you do not remortgage |
| Total amount repayable | Full cost over entire term | Compare total cost across lenders |
| Fees included | Arrangement and valuation fees | Check what is and is not included |
Related KT guides
MCOB 5 and Mortgage Brokers: What Your Adviser Must Provide
If you use an FCA-authorised mortgage broker, they must provide you with a personalised mortgage illustration for any product they recommend. The broker must also provide a Key Facts Illustration about their own service (whether they charge a fee, whether they work from a limited panel of lenders or the whole market) before you commit to their services. Whole-of-market brokers have access to more lender products than panel brokers. Always ask your broker how many lenders they have access to and whether any lenders pay them a higher procuration fee -- Consumer Duty requires brokers to demonstrate their recommendation is in your best interests regardless of commission structure.
Frequently Asked Questions
What must a mortgage illustration contain under MCOB 5?
Under MCOB 5, a mortgage lender or adviser must provide a personalised mortgage illustration before the customer is bound by the contract. The illustration must show: the initial interest rate and APR, total amount repayable over the full term, monthly payment at the initial rate, the rate after any initial deal period (typically the SVR), and all fees included in the calculation.
What is the difference between a KFI and an ESIS?
A Key Facts Illustration (KFI) was the pre-2016 mortgage disclosure document. Since March 2016, the European Standardised Information Sheet (ESIS) replaced the KFI for most new mortgage applications. The ESIS is a pan-European standardised format allowing like-for-like comparison across lenders. Some lenders still refer to mortgage illustrations as KFIs informally.
When must the mortgage illustration be provided?
Under MCOB 5.5, the lender must provide the illustration before the customer is bound. For advised sales, before the recommendation is made. For non-advised sales, before the customer applies. The illustration must be personalised -- a generic illustration does not satisfy MCOB 5.
Can I compare mortgage illustrations from different lenders?
Yes -- this is the purpose of the standardised ESIS format. The ESIS uses a common structure allowing comparison of total cost of credit, APR, initial monthly payment and reversion rate payment. The APR is the most reliable single comparison figure as it factors in fees and the full term.
What if the mortgage offer differs from the illustration?
The mortgage illustration is indicative. The formal mortgage offer is the binding contract. If there are material differences (higher rate, higher fees), you have the right to withdraw before completing. Check the offer against the illustration before signing.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
